Question 45 Chapter 7 of +2-A – T.S. Grewal 12 Class Part – A Vol. 1

Question 45 Chapter 7 of +2-A

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
AmountParticular Amount
Sundry Assets (WN 2) 1,80,000Sundry Creditors 24,000
Cash A/c Creditors 23,500Cash A/c Assets 3,00,000
      
      
      
      
Profit transferred to:     
A’s Capital A/c48,200    
B’s Capital A/c36,150    
C’s Capital A/c36,1501,20,500   
  3,20,000  3,20,000

 

 

Partners’ Capital Account
 
Part.ABC

Part.

ABC
    By Balance B/d70,00055,00035,000
    By Realization Profit A/c48,20036,15036,150
        
        
To Cash A/c1,18,20091,15071,150    
 1,18,20091,15071,150 1,18,20091,15071,150

 

Cash Account
Particular
AmountParticular Amount
Realization A/c4,000Realization 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:

 

Memorandum Balance Sheet
Particular
AB C
Capital as on April 01, 20161,00,00080,00060,000
Less : Drawings 10,00010,00010,000
Less: Share of Loss 4 : 3 : 3 20,00015,00015,000
Capital as on April 01, 2017 70,00055,00035,000

 

Memorandum Balance Sheet
Particular
AmountParticular Amount
Creditors24,000Cash in Hand 4,000
Capital A/cs  Sundry Assets (Balancing figure) 1,80,000
A’s Capital A/c70,000    
B’s Capital A/c55,000    
C’s Capital A/c35,0001,60,000   
  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)

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 45 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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