Question 47 Chapter 7 of +2-A – T.S. Grewal 12 Class Part – A Vol. 1

Question 47 Chapter 7 of +2-A

Question 47 Chapter 7 of +2-A

47. On 1st April, 2017 , A , B and C commenced business in partnership sharing profits and losses in proportion of 1/2,1/3 and 1/6 respectively . They paid into their Bank A/c as their capitals 22,000; 10,000 by A , 7,000 by B and 5,000 by C . During the year , they drew 5,000; being 1,900 by A, 1,700 by B and 1,400 by C . On 31st March, 2018, they dissolved their partnership , A taking up Stock at an agreed valuation of 5,000, B taking up Furniture at 2,000 and C taking up Debtors at 3,000. After paying up their Creditors, there remained a balance of 1,000 at Bank. Prepare necessary accounts showing the distribution of the cash at the Bank and of the further cash brought in by any partner or partners as the case required.

 

 

The solution of Question 47 Chapter  7 of +2-A: –

 

Realization Account
Particular 5
Amount Particular Amount
Sundry Asset 17,000 A’s Capital Stock   5,000
      B’s Capital Furniture   2,000
      C’s Capital Debtors   3,000
      Bank A/c Assets realized   1,000
           
           
      Loss transferred to:    
      A’s Capital A/c 3,000  
      B’s Capital A/c 2,000  
      C’s Capital A/c 1,000 6,000
    18,000     18,000

 

 

Partners’ Capital Account
 
Part. A B C

Part.

A B C
To Realization A/c 5,000 2,000 3,00 By Balance B/d 8,100 5,300 5,600
To Realization Loss A/c 3,000 2,000 1,000        
               
               
To Cash A/c 100 1,300 By Cash A/c     400
  8,100 5,300 4,000   8,100 5,300 4,000

 

Cash Account
Particular
Amount Particular Amount
Realization A/c 1,000      
C’s Capital A/c   400      
      A’s Capital A/c   100
      B’s Capital A/c   1,300
           
    1,400     1,400


Working Note:

 

Memorandum Balance Sheet
Particular
Amount Particular Amount
    Sundry Assets (Balancing figure)   17,000
Capital A/cs          
A’s Capital A/c 10,000 – 1,900 8,100      
B’s Capital A/c 7,000 – 1,700 5,300      
C’s Capital A/c 5000 – 1400 3,600      
           
    17,000     17,000

 

 

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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