Question 43 Chapter 7 of +2-A – T.S. Grewal 12 Class Part – A Vol. 1

Question 43 Chapter 7 of +2-A

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:

 

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)

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 43 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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