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Question 42 Chapter 7 of +2-A
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Table of Contents
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: –
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| 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:
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| 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 | ||||
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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
Check out T.S. Grewal +2 Book 2020@ Official Website of Sultan Chand Publication
