Question 40 Chapter 7 of +2-A

Question 40 Chapter 7 of +2-A

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
AmountParticular Amount
Sundry Assets (WN)65,000Creditors 20,000
Cash A/c 20,000Cash A/c (Assets realized) 50,000
   Loss on Revaluation  
   A’s Capital A/c7,500 
   B’s Capital A/c4,500 
   C’s Capital A/c3,00015,000
  85,000  85,000

 

 

Partners’ Capital Account
 
Part.ABC

Part.

ABC
To Balance B/d5,000By Balance B/d30,00020,000
To Realization Loss A/c7,5004,5003,000  
        
        
To Cash A/c22,50015,5008,000BY cash A/c  8,000
 30,00020,0008,000 30,00020,0008,000

 

Bank Account
Particular
AmountParticular Amount
Realisation A/c Assets50,000Realization A/c 20,000
C’s Capital A/c 8,000A’s Capital A/c 22,500
   B’s Capital A/c 15,500
      
      
  58,000  58,000

 

Working Note:

 

Memorandum Balance Sheet
Particular
AmountParticular Amount
Other liabilities20,000C’s Capital A/c 5,000
Capital A/c  Sundry Assets 65,000
A30,000    
B20,00050,000   
      
  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)

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 40 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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