Question 40 Chapter 7 of +2-A
Table of Contents
40. A, B and C were partners sharing profits int he ratio of 5 : 3 : 2 . On 31st March, 2018, A’s Capital and B’s Capital were 30,000 and 20,000 respectively but C owed 5,000 to the firm . the liabilities were 20,000 .The assets of the firm realized 50,000. Prepare Realization Account , Partner’s Capital Accounts and Bank Account.
The solution of Question 40 Chapter 7 of +2-A: –
| Realization Account |
|||||
| Particular |
Amount | Particular | Amount | ||
| Sundry Assets (WN) | 65,000 | Creditors | 20,000 | ||
| Cash A/c | 20,000 | Cash A/c (Assets realized) | 50,000 | ||
| Loss on Revaluation | |||||
| A’s Capital A/c | 7,500 | ||||
| B’s Capital A/c | 4,500 | ||||
| C’s Capital A/c | 3,000 | 15,000 | |||
| 85,000 | 85,000 | ||||
| Partners’ Capital Account |
|||||||
| Part. | A | B | C |
Part. |
A | B | C |
| To Balance B/d | – | – | 5,000 | By Balance B/d | 30,000 | 20,000 | – |
| To Realization Loss A/c | 7,500 | 4,500 | 3,000 | – | – | ||
| To Cash A/c | 22,500 | 15,500 | 8,000 | BY cash A/c | 8,000 | ||
| 30,000 | 20,000 | 8,000 | 30,000 | 20,000 | 8,000 | ||
| Bank Account |
|||||
| Particular |
Amount | Particular | Amount | ||
| Realisation A/c Assets | 50,000 | Realization A/c | 20,000 | ||
| C’s Capital A/c | 8,000 | A’s Capital A/c | 22,500 | ||
| B’s Capital A/c | 15,500 | ||||
| 58,000 | 58,000 | ||||
Working Note:
| Memorandum Balance Sheet |
|||||
| Particular |
Amount | Particular | Amount | ||
| Other liabilities | 20,000 | C’s Capital A/c | 5,000 | ||
| Capital A/c | Sundry Assets | 65,000 | |||
| A | 30,000 | ||||
| B | 20,000 | 50,000 | |||
| 70,000 | 70,000 | ||||
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)
- Chapter No. 8 – Company Accounts – Accounting for Share Capital
- Chapter No. 9 – Company Accounts – Issue of Debentures
- Chapter No. 10 – Redemption of Debentures
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
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