Question 49 Chapter 7 of +2-A
Table of Contents
49. X and Y were partners sharing profits and losses in the ratio of 3: 2. They decided to dissolve the firm on 31st March 2018. On that date, their Capitals were X— 40,000 and Y — 30,000. Creditors amounted to 24,000. Assets were realised for 88,500. Creditors of 16,000 were taken over by X at 14,000. Remaining Creditors were paid at 76,500. The cost of a realisation came to 500. Prepare necessary accounts.
The solution of Question 49 Chapter 7 of +2-A: –
| Revaluation Account |
|||||
| Particular 5 |
Amount | Particular | Amount | ||
| Sundry Assets | 94,000 | Creditors | 24,000 | ||
| X’s Capital A/c Creditors | 14,000 | Cash Assets Realized | 88,500 | ||
| Cash A/c | |||||
| Creditors | 7,500 | ||||
| Expenses | 500 | 8,000 | |||
| Loss transferred to: | |||||
| X’s Capital A/c | 2,100 | ||||
| Y’s Capital A/c | 1,400 | 3,500 | |||
| 1,16,000 | 1,16,000 | ||||
| Partners’ Capital Account |
|||||
| Part. | X | Y |
Part. |
X | Y |
| By Balance B/d | 40,000 | 30,000 | |||
| To Realization Loss A/c | 2,100 | 1,400 | By Realization A/c | 14,000 | – |
| To Cash A/c | 51,900 | 28,600 | |||
| 54,000 | 30,000 | 54,000 | 30,000 | ||
| Cash Account |
|||||
| Particular |
Amount | Particular | Amount | ||
| Realization A/c Asset | 88,500 | Realization A/c Creditors | 8,000 | ||
| X’s Capital A/c | 51,900 | ||||
| Y’s Capital A/c | 28,600 | ||||
| 88,500 | 88,500 | ||||
Working Note:
| Memorandum Balance Sheet |
|||||
| Particular |
Amount | Particular | Amount | ||
| Capital A/cs | Sundry Assets (Balancing figure) | 94,000 | |||
| X’s Capital A/c | 40,000 | ||||
| Y’s Capital A/c | 30,000 | 70,000 | |||
| Creditors | 24,000 | ||||
| 94,000 | 94,000 | ||||
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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