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 
Creditors40,000
Ashok’s Capita1,00,000
Kishore’s Capita10,000 Dr Balance
Profit and Loss A/c8,000 Dr Balance
Realization Expenses1,000

You are required to close the books of the firm

 

The solution of Question 43 Chapter  7 of +2-A: –

 

Realization Account
Particular 5
AmountParticular Amount
Sundry Assets (WN)1,20,000Creditors 40,000
      
   Cash A/c Assets Realized 1,10,000
Cash A/c:     
Creditors40,000    
Expenses1,00041,000   
   Loss transferred to:  
   Ashok’s Capital A/c8,250 
   Kishore’s Capital A/c2,75011,000
  1,61,000  1,61,000

 

 

Partners’ Capital Account
Part.AshokKishore

Part.

AshokKishore
By Balance b/d 10,000By Balance B/d1,00,000
By Realization A/c Loss8,2502,750   
By Profit and Loss A/c6,0002,000   
      
To Cash A/c85,750By Cash A/c14,750
 1,00,00014,750 1,00,00014,750

 

Cash Account
Particular
AmountParticular Amount
Balance b/d2,000Realization A/c 41,000
Realization A/c 1,10,000Ashok’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
AmountParticular Amount
Creditors40,000Cash 2,000
Ashok’s Capita 1,00,000Kishore’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

 

Check out T.S. Grewal +2 Book 2020@ Official Website of Sultan Chand Publication

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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