# Question 50 Chapter 7 of +2-A – T.S. Grewal 12 Class Part – A Vol. 1

Question No.50 Chapter No.7 - T.S. Grewal +2 Book 2019-Solution

Question 50 Chapter 7 of +2-A

50. P, Q and R are three partners sharing profits and losses in the ratio of 3 : 3 : 2 respectively . Their respective capitals are in their profit-sharing proportions . On 1st April, 2017 , the total capital of the firm and the balance of General Reserve are 80,000 and 20,000 respectively. During the year 2017-18 the firm made a profit of 28,000 before charging interest on capital @ 5%. The drawings of the partners are P— 8,000; Q— 7,000; and R— 5,000. On 31st March, 2018 their liabilities were 18,000. On this date , they decided to dissolve the firm. The assets realised 1,08,600 and realisation expenses amounted to 1,800. Prepare necessary Ledger Accounts to close the books of the firm.

## The solution of Question 50 Chapter  7 of +2-A: –

 Revaluation Account Particular 5 Amount Particular Amount Revaluation Account 1,26,000 Creditors 18,000 X’s Capital A/c Creditors 14,000 Cash A/c Assets Realized 1,08,600 Cash A/c Creditors 18,000 Expenses 1,800 19,800 Loss transferred to: P’s Capital A/c 7,200 Q’s Capital A/c 7,200 R’s Capital A/c 4,800 19,200 1,14,800 1,14,800

 Partners’ Capital Account Part. P Q R Part. P Q R To Drawing A/c 8,000 7,000 5,000 By Balance B/d 30,000 30,000 20,000 To Realization Loss A/c 7,200 7,200 4,800 By Interest on Capital A/c 1,500 1,500 1,000 By P/L Appropriation A/c (WN 3) 9,000 9,000 9,000 To Cash A/c 32,800 32,800 22,200 48,000 48,000 32,000 48,000 48,000 32,000

 Cash Account Particular Amount Particular Amount Capital A/cs Sundry Assets (Balancing figure) 1,26,000 P’s Capital A/c 22,000 Q’s Capital A/c 23,000 R’s Capital A/c 15,000 60,000 General Reserve 20,000 Profit and Loss A/c 28,000 Creditors 18,000 1,26,000 1,26,000

Working Note:

 Computation of Partners’ Capital after drawings as on 31st March 2018 Part. P Q R Part. P Q R To Drawing A/c 8,000 7,000 5,000 By Balance B/d 30,000 30,000 20,000 To Cash A/c 22,000 23,000 15,000 30,000 30,000 20,000 30,000 30,000 20,000

 Profit and Loss Appropriation Account Dr. for the year ending 31st March, 2018 Particular Amount Particular Amount Interest on Capital Profit and Loss A/c 28,000 P’s Capital A/c 1,500 Q’s Capital A/c 1,500 R’s Capital A/c 1,000 4,000 Profit transferred to: P’s Capital A/c 9,000 Q’s Capital A/c 9,000 R’s Capital A/c 6,000 24,000 28,000 28,000

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. 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