Question 48 Chapter 7 of +2-A

Question 48 Chapter 7 of +2-A

48. The partnership between A and B was dissolved on 31st March, 2018. On that date, the respective credits to the capitals were A— 1,70,000 and B— 30,000. 20,000 were owed by B to the firm; 1,00,000 were owed by the firm to A and 2,00,000 were due to the Trade Creditors. Profits and losses were shared in the proportions of 2/3 to A, 1/3 to B. The assets represented by the above stated net liabilities realise 4,50,000 exclusive of 20,000 owed by B. The liabilities were settled at book figures. Prepare Realisation Account, Partners’ Capital Accounts and Cash Account showing the distribution to the partners.

 

 

The solution of Question 48 Chapter  7 of +2-A: –

 

Revaluation Account
Particular 5
AmountParticular Amount
Sundry Assets (WN)4,80,000Trade Creditors 2,00,000
B’s Loan 20,000Cash Assets realized 4,50,000
Cash A/c Creditors 2,00,000B’s Capital A/c B’s Loan 20,000
      
      
      
   Loss transferred to:  
   A’s Capital A/c20,000 
   B’s Capital A/c10,00030,000
  7,00,000  7,00,000

 

 

Partners’ Capital Account
Part.AB

Part.

AB
To Realization A/c20,000By Balance B/d1,70,00030,000
To Realization Loss A/c20,00020,000   
      
      
To Cash A/c1,50,000   
 1,70,00030,000 1,70,00030,000

 

Cash Account
Particular
AmountParticular Amount
Realization A/c Asset4,50,000Realization A/c Creditors 2,00,000
      
   A’s Capital A/c 1,50,000
   A’s Loan A/c 1,00,000
      
  4,50,000  4,50,000


Working Note:

 

Memorandum Balance Sheet
Particular
AmountParticular Amount
  Sundry Assets (Balancing figure) 20,000
Capital A/cs  Sundry Assets (Balancing figure) 4,80,000
A’s Capital A/c1,70,000    
B’s Capital A/c30,0002,00,000   
A’s Loan 1,00,000   
Trade Creditors 2,00,000   
  5,00,000  5,00,000

 

 

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

 

Check out T.S. Grewal +2 Book 2020@ Official Website of Sultan Chand Publication

2 Book 1 min - Question 48 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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