Question 42 Chapter 7 of +2-A – T.S. Grewal 12 Class Part – A Vol. 1

Question 42 Chapter 7 of +2-A

Question 42 Chapter 7 of +2-A

41. A and B dissolve their partnership . Their position as at 31st March , 2018 was:

Particulars  
A’s Capital 25,000
B’s Capital 15,000
Sundry Creditors 20,000
Cash in Hand and at Bank 750

The balance of A’s Loan Account to the firm stood at 10,000. The realization expenses amounted to 350. Stock realized 20,000 and Debtors 25,000 . B took a machine at the agreed valuation of 7,500.
You are required to close the books of the firm.

 

The solution of Question 42 Chapter  7 of +2-A: –

 

Realization Account
Particular
Amount Particular Amount
Sundry Assets (WN) 69,250 Sundry Creditors   20,000
Cash A/c Liabilities   5,000      
      Bank A/c:    
Bank A/c:     Stock 20,000  
S. Creditors 20,000   Debtors 25,000  
Expenses 350 20,350 Other Asset 20,000 65,000
Profit transferred to:     Cash A/c Assets Realized   24,000
A’s Capital A/c 1,450        
B’s Capital A/c 1,450 2,900      
    92,500     92,500

 

 

Partners’ Capital Account
Part. A B

Part.

A B
By Realization A/c Machinery   7,500 By Balance B/d 25,000 15,000
      By Realization A/c Profit 1,450 1,450
           
           
To Cash A/c 26,450 8,950      
  26,450 16,450   26,450 16,450

 

A’s Loan Account
Particular
Amount Particular Amount
Bank A/c 10,000 Balance b/d   10,000
           
           
           
           
    10,000     10,000

 

Bank Account
Particular
Amount Particular Amount
Balance b/d 750 A’s Loan A/c   10,000
Realization A/c   65,000 A’s Capital A/c   26,450
      B’s Capital A/c   8,950
      Realization A/c   20,350
           
    65,750     65,750


Working Note:

 

Memorandum Balance Sheet
Particular
Amount Particular Amount
Sundry Creditors 20,000 Cash in Hand and at Bank   750
Capital A/c     Sundry Assets   69,250
A 25,000        
B 15,000 40,000      
A’s Loan   10,000      
    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 42 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

Leave a Reply