Question 37 Chapter 7 of +2-A

Question 37 Chapter 7 of +2-A

37. A B and C were partners sharing profits in the ratio of 2: 2: 1. They decided to dissolve their firm on 31st March 2018 when the Balance Sheet was :

Liabilities AmountAssets Amount
Creditors 40,000Cash 40,000
Bills Payable 46,000Debtors70,000 
Employees’ Provident Fund 32,000Furniture6,00064,000
Mrs. A’s Loan 38,000Stock 50,000
C’s Loan 30,000Investments 60,000
Investments Fluctuation Reserve 16,000Furniture 42,000
Capitals A/cs  Machinery 1,36,000
A1,20,000 Land 1,00,000
B1,00,000 Goodwill 30,000
C1,00,000    
  5,22,000  5,22,000

Following transactions took place :
a A took over Stock at 36,000. He also took over his wife’s loan.
b B took over half of the Debtors at 28,000.
c C took over Investments at 54,000 and half of Creditors at their book value.
d Remaining Debtors realised 60% of their book value. Furniture sold for 30,000; Machinery 82,000 and Land 1,20,000.
e An unrecorded asset was sold for 22,000.
f Realisation expenses amounted to 4,000. Prepare necessary Ledger Accounts to close the books of the firm.

 

The solution of Question 37 Chapter  7 of +2-A: –

 

Realization Account
Particular
AmountParticular Amount
Debtors70,000Provision for Doubtful Debts 6,000
Stock 50,000Creditors 40,000
Investments 60,000Bills Payable 46,000
Furniture 42,000Employee’s Provident Fund 32,000
Machinery 1,36,000Investment Fluctuation Fund 16,000
Land 1,00,000Mrs A’s Loan 38,000
Goodwill 30,000A’s Capital A/c Stock 36,000
A’s Capital A/c Mrs.A’s Loan 38,000B’s Capital A/c Debtors 28,000
C’s Capital A/c Creditors 20,000C’s Capital A/c Investments 54,000
Cash A/c Expenses 4,000Cash A/c 2,54,000
Cash A/c Creditors 20,000   
Cash A/c Bills Payable 46,000   
Cash A/c Employees’ Provident Fund 32,000Loss on Revaluation  
   A’s Capital A/c30,800 
   B’s Capital A/c30,800 
   C’s Capital A/c15,40077,000
  6,48,000  6,48,000

 

 

Partners’ Capital Account
Part.ABC

Part.

AB C
To Realization A/c36,000By Balance B/d1,20,0001,00,0001,00,000
To Realization A/c28,000By Realization A/c38,000
To Realization A/c54,000By Realization A/c20,000
To Realization Loss A/c30,80030,80015,400    
        
To Cash A/c91,20041,20050,600    
 1,58,0001,00,0001,20,000 1,58,0001,00,0001,20,000

 

C’s LoanAccount
Particular
AmountParticular Amount
Cash A/c30,000Balance b/d 30,000
      
      
      
  30,000  30,000

 

Bank Account
Particular
AmountParticular Amount
Balance b/d40,000Realization A/c 1,02,000
Realization A/c 2,75,000C’s Loan A/c 30,000
   A’s Capital A/c 91,200
   B’s Capital A/c 41,200
   C’s Capital A/c 50,600
  3,15,000  3,15,000

 

 

 

T.S. Grewal’s Double Entry Book Keeping +2 (Vol. I: Accounting for Not-for-Profit Organizations and Partnership Firms)

  • Chapter No. 1 – Financial Statement of Not-For-Profit Organisations
  • Chapter No. 2 – Accounting for Partnership Firms – Fundamentals
  • Chapter No. 3 – Goodwill: Nature and Valuation
  • Chapter No. 4 – Change in Profit-Sharing Ratio Among the Existing Partners
  • Chapter No. 5 – Admission of a Partner
  • Chapter No. 6 – Retirement/Death of a Partner
  • Chapter No. 7 – Dissolution of a Partnership Firm

T.S. Grewal’s Double Entry Book Keeping (Vol. II: Accounting for Companies)

T.S. Grewal’s Double Entry Book Keeping (Vol. II: Accounting for Companies)

  • Chapter No. 1 – Financial Statements of a Company
  • Chapter No. 2 – Financial Statement Analysis 
  • Chapter No. 3 – Tools of Financial Statement Analysis – Comparative Statements and Common- Size Statements
  • Chapter No. 4 – Accounting Ratios
  • Chapter No. 5 – Cash Flow Statement

 

Check out T.S. Grewal +2 Book 2020@ Official Website of Sultan Chand Publication

2 Book 1 min - Question 37 Chapter 7 of +2-A - T.S. Grewal 12 Class Part - A Vol. 1
Vol. I: Accounting for Not-for-Profit Organizations and Partnership Firms

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