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
AmountParticular Amount
Sundry Asset83,000Sundry Liabilities (WIN) 28,000
   Cash A/c Assets 80,000
      
Cash A/c     
Sundry Liabilities28,000    
Contingent Liabilities8,00036,000   
   Loss transferred to:  
   A’s Capital A/c5,500 
   B’s Capital A/c2,750 
   C’s Capital A/c2,75011,000
  1,19,000  1,19,000

 

 

Partners’ Capital Account
 
Part.ABC

Part.

ABC
To Realization Loss A/c5,5002,7502,750By Balance B/d20,00020,00020,000
        
        
        
To Cash A/c14,50017,25017,250    
 20,00020,00020,000 20,00020,00020,000

 

Cash Account
Particular
AmountParticular Amount
Balance b/d5,000Realization 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
AmountParticular Amount
  Cash in Hand 5,000
Capital A/cs  Sundry Assets 83,000
A’s Capital A/c20,000    
B’s Capital A/c20,000    
C’s Capital A/c20,00060,000   
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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