Question 44 Chapter 7 of +2-A – T.S. Grewal 12 Class Part – A Vol. 1

Question 44 Chapter 7 of +2-A

Question 44 Chapter 7 of +2-A

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:

 

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)

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 44 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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