Question 44 Chapter 7 of +2-A
Table of Contents
44. X, Y and Z entered into a partnership and contributed 9,000; 6,000 and 3,000 respectively. They agreed to share profits and losses equally. The business lost heavily during the very first year and they decided to dissolve the firm. After realizing all assets and paying off liabilities, there remained a cash balance of 6,000. Prepare Realization Account and Partner’s Capital Accounts.
The solution of Question 44 Chapter 7 of +2-A: –
| Realization Account |
|||||
| Particular 5 |
Amount | Particular | Amount | ||
| Sundry Assets (WN) | 18,000 | Cash A/c (Assets realized) | 6,000 | ||
| Loss transferred to: | |||||
| X’s Capital A/c | 4,000 | ||||
| Y’s Capital A/c | 4,000 | ||||
| Z’s Capital A/c | 4,000 | 12,000 | |||
| 18,000 | 18,000 | ||||
| Partners’ Capital Account |
|||||||
| Part. | X | Y | Z |
Part. |
X | Y | Z |
| To Realization Loss A/c | 4,000 | 4,000 | 4,000 | By Balance B/d | 9,000 | 6,000 | 3,000 |
| By Realization A/c Loss | 8,250 | 2,750 | |||||
| By Profit and Loss A/c | 6,000 | 2,000 | |||||
| To Cash A/c | 5,000 | 2,000 | – | By Cash A/c | – | 1,000 | |
| 9,000 | 6,000 | 4,000 | 9,000 | 6,000 | 4,000 | ||
| Cash Account |
|||||
| Particular |
Amount | Particular | Amount | ||
| Realization A/c | 6,000 | ||||
| Z’s Capital A/c | 1,000 | ||||
| X’s Capital A/c | 5,000 | ||||
| Y’s Capital A/c | 2,000 | ||||
| 7,000 | 7,000 | ||||
Working Note:
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| Memorandum Balance Sheet |
|||||
| Particular |
Amount | Particular | Amount | ||
| Sundry Assets (Balancing figure) | 18,000 | ||||
| Capital A/cs | |||||
| X’s Capital A/c | 9,000 | ||||
| Y’s Capital A/c | 6,000 | ||||
| Z’s Capital A/c | 3,000 | 18,000 | |||
| 18,000 | 18,000 | ||||
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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