Question 45 Chapter 7 of +2-A
45. A, B and C started business on 1st April, 2016 with capitals of 1,00,000; 80,000 and 60,000 respectively sharing profits losses in the ratio of 4 : 3 : 3 . For the year ended 31st March, 2017, the firm suffered a loss of 50,000 . Each of the partners withdrew 10,000 during the year. On 31st March, 2017, the firm was dissolved, the creditors of the firm stood at 24,000 on that date and Cash in Hand was 4,000. The assets realised 3,00,000 and Creditors were paid 23,500 in full settlement of their claims . Prepare Realisation Account and show your workings clearly.
The solution of Question 45 Chapter 7 of +2-A: –
| Realization Account |
|||||
| Particular 5 |
Amount | Particular | Amount | ||
| Sundry Assets (WN 2) | 1,80,000 | Sundry Creditors | 24,000 | ||
| Cash A/c Creditors | 23,500 | Cash A/c Assets | 3,00,000 | ||
| Profit transferred to: | |||||
| A’s Capital A/c | 48,200 | ||||
| B’s Capital A/c | 36,150 | ||||
| C’s Capital A/c | 36,150 | 1,20,500 | |||
| 3,20,000 | 3,20,000 | ||||
| Partners’ Capital Account |
|||||||
| Part. | A | B | C |
Part. |
A | B | C |
| By Balance B/d | 70,000 | 55,000 | 35,000 | ||||
| By Realization Profit A/c | 48,200 | 36,150 | 36,150 | ||||
| To Cash A/c | 1,18,200 | 91,150 | 71,150 | ||||
| 1,18,200 | 91,150 | 71,150 | 1,18,200 | 91,150 | 71,150 | ||
| Cash Account |
|||||
| Particular |
Amount | Particular | Amount | ||
| Realization A/c | 4,000 | Realization A/c | 23,500 | ||
| Realization A/c | 3,00,000 | ||||
| A’s Capital A/c | 1,18,200 | ||||
| B’s Capital A/c | 91,150 | ||||
| C’s Capital A/c | 71,150 | ||||
| 3,04,000 | 3,04,000 | ||||
Working Note:
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| Memorandum Balance Sheet |
||||
| Particular |
A | B | C | |
| Capital as on April 01, 2016 | 1,00,000 | 80,000 | 60,000 | |
| Less : Drawings | 10,000 | 10,000 | 10,000 | |
| Less: Share of Loss 4 : 3 : 3 | 20,000 | 15,000 | 15,000 | |
| Capital as on April 01, 2017 | 70,000 | 55,000 | 35,000 | |
| Memorandum Balance Sheet |
|||||
| Particular |
Amount | Particular | Amount | ||
| Creditors | 24,000 | Cash in Hand | 4,000 | ||
| Capital A/cs | Sundry Assets (Balancing figure) | 1,80,000 | |||
| A’s Capital A/c | 70,000 | ||||
| B’s Capital A/c | 55,000 | ||||
| C’s Capital A/c | 35,000 | 1,60,000 | |||
| 1,84,000 | 1,84,000 | ||||
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
Check out T.S. Grewal +2 Book 2020@ Official Website of Sultan Chand Publication
