Question 50 Chapter 7 of +2-A

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
AmountParticular Amount
Revaluation Account1,26,000Creditors 18,000
X’s Capital A/c Creditors 14,000Cash A/c Assets Realized 1,08,600
Cash A/c     
Creditors18,000    
Expenses1,80019,800   
      
   Loss transferred to:  
   P’s Capital A/c7,200 
   Q’s Capital A/c7,200 
   R’s Capital A/c4,80019,200
  1,14,800  1,14,800

 

 

Partners’ Capital Account
Part.PQR

Part.

PQR
To Drawing A/c8,0007,0005,000By Balance B/d30,00030,00020,000
To Realization Loss A/c7,2007,2004,800By Interest on Capital A/c1,5001,5001,000
    By P/L Appropriation A/c (WN 3)9,0009,0009,000
        
To Cash A/c32,80032,80022,200    
 48,00048,00032,000 48,00048,00032,000

 

Cash Account
Particular
AmountParticular Amount
Capital A/cs Sundry Assets (Balancing figure) 1,26,000
P’s Capital A/c22,000    
Q’s Capital A/c23,000    
R’s Capital A/c15,00060,000   
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.PQR

Part.

PQR
To Drawing A/c8,0007,0005,000By Balance B/d30,00030,00020,000
        
        
        
To Cash A/c22,00023,00015,000    
 30,00030,00020,000 30,00030,00020,000

 

 

Profit and Loss Appropriation Account Dr. for the year ending 31st March, 2018
Particular
AmountParticular Amount
Interest on Capital Profit and Loss A/c 28,000
P’s Capital A/c1,500    
Q’s Capital A/c1,500    
R’s Capital A/c1,0004,000   
Profit transferred to:     
P’s Capital A/c9,000    
Q’s Capital A/c9,000    
R’s Capital A/c6,00024,000   
  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)

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 50 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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