Question 46 Chapter 7 of +2-A
46. A, B and C were in partnership sharing profits and losses in the ratio of 2 : 1 : 1. They decided to dissolve the partnership. On that date of dissolution, Sundry Assets (including cash 5,000) amounted to 88,000, assets realised 80,000 including an unrecorded asset which realised 4,000. A contingent liability on account of bills discounted 8,000 was paid by the firm. The Capital Accounts of A, B and C showed a balance of 20,000 each. Prepare Realisation Account, Partners’ Capital Accounts and Cash Account.
The solution of Question 46 Chapter 7 of +2-A: –
| Realization Account |
|||||
| Particular 5 |
Amount | Particular | Amount | ||
| Sundry Asset | 83,000 | Sundry Liabilities (WIN) | 28,000 | ||
| Cash A/c Assets | 80,000 | ||||
| Cash A/c | |||||
| Sundry Liabilities | 28,000 | ||||
| Contingent Liabilities | 8,000 | 36,000 | |||
| Loss transferred to: | |||||
| A’s Capital A/c | 5,500 | ||||
| B’s Capital A/c | 2,750 | ||||
| C’s Capital A/c | 2,750 | 11,000 | |||
| 1,19,000 | 1,19,000 | ||||
| Partners’ Capital Account |
|||||||
| Part. | A | B | C |
Part. |
A | B | C |
| To Realization Loss A/c | 5,500 | 2,750 | 2,750 | By Balance B/d | 20,000 | 20,000 | 20,000 |
| To Cash A/c | 14,500 | 17,250 | 17,250 | ||||
| 20,000 | 20,000 | 20,000 | 20,000 | 20,000 | 20,000 | ||
| Cash Account |
|||||
| Particular |
Amount | Particular | Amount | ||
| Balance b/d | 5,000 | Realization A/c | 36,000 | ||
| Realization A/c | 80,000 | ||||
| A’s Capital A/c | 14,500 | ||||
| B’s Capital A/c | 17,250 | ||||
| C’s Capital A/c | 17,250 | ||||
| 85,000 | 85,000 | ||||
Working Note:
| Memorandum Balance Sheet |
|||||
| Particular |
Amount | Particular | Amount | ||
| Cash in Hand | 5,000 | ||||
| Capital A/cs | Sundry Assets | 83,000 | |||
| A’s Capital A/c | 20,000 | ||||
| B’s Capital A/c | 20,000 | ||||
| C’s Capital A/c | 20,000 | 60,000 | |||
| Sundry Liabilities (Balancing figure) | 28,000 | ||||
| 88,000 | 88,000 | ||||
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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