Question 46 Chapter 7 of +2-A – T.S. Grewal 12 Class Part – A Vol. 1

Question 46 Chapter 7 of +2-A

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)

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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Vol. I: Accounting for Not-for-Profit Organizations and Partnership Firms

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