Question 43 Chapter 7 of +2-A
43. Ashok and Kishore were in partnership sharing profits in the ratio of 3: 1. They agreed to dissolve the firm. The assets (other than cash of 2,000) of the firm realized 1,10,000. The liabilities and other particulars on that date were: Ashok and Kishore were in partnership sharing profits in the ratio of 3: 1. They agreed to dissolve the firm. The assets (other than cash of 2,000) of the firm realized 1,10,000. The liabilities and other particulars on that date were:
| Particulars | |
| Creditors | 40,000 |
| Ashok’s Capita | 1,00,000 |
| Kishore’s Capita | 10,000 Dr Balance |
| Profit and Loss A/c | 8,000 Dr Balance |
| Realization Expenses | 1,000 |
You are required to close the books of the firm
The solution of Question 43 Chapter 7 of +2-A: –
| Realization Account |
|||||
| Particular 5 |
Amount | Particular | Amount | ||
| Sundry Assets (WN) | 1,20,000 | Creditors | 40,000 | ||
| Cash A/c Assets Realized | 1,10,000 | ||||
| Cash A/c: | |||||
| Creditors | 40,000 | ||||
| Expenses | 1,000 | 41,000 | |||
| Loss transferred to: | |||||
| Ashok’s Capital A/c | 8,250 | ||||
| Kishore’s Capital A/c | 2,750 | 11,000 | |||
| 1,61,000 | 1,61,000 | ||||
| Partners’ Capital Account |
|||||
| Part. | Ashok | Kishore |
Part. |
Ashok | Kishore |
| By Balance b/d | 10,000 | By Balance B/d | 1,00,000 | – | |
| By Realization A/c Loss | 8,250 | 2,750 | |||
| By Profit and Loss A/c | 6,000 | 2,000 | |||
| To Cash A/c | 85,750 | – | By Cash A/c | – | 14,750 |
| 1,00,000 | 14,750 | 1,00,000 | 14,750 | ||
| Cash Account |
|||||
| Particular |
Amount | Particular | Amount | ||
| Balance b/d | 2,000 | Realization A/c | 41,000 | ||
| Realization A/c | 1,10,000 | Ashok’s Capital A/c | 85,750 | ||
| Kishore’s Capital A/c | 14,750 | ||||
| 1,26,750 | 1,26,750 | ||||
Working Note:
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| Memorandum Balance Sheet |
|||||
| Particular |
Amount | Particular | Amount | ||
| Creditors | 40,000 | Cash | 2,000 | ||
| Ashok’s Capita | 1,00,000 | Kishore’s Capital | 10,000 | ||
| Profit and Loss A/c | 8,000 | ||||
| Sundry Assets (Balancing figure) | 1,20,000 | ||||
| 1,40,000 | 1,40,000 | ||||
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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