Question 40 Chapter 7 of +2-A – T.S. Grewal 12 Class Part – A Vol. 1

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
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)

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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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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