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Transfer Stage: J. K. Shah Classes

The document outlines the accounting procedures for the transfer of assets and liabilities, detailing the realization of assets and settlement of liabilities. It includes instructions for handling partner insolvency and the process for recording profit or loss on realization. Additionally, it defines a bill of exchange, identifies its parties, and provides a specimen format for such a document.

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22 views3 pages

Transfer Stage: J. K. Shah Classes

The document outlines the accounting procedures for the transfer of assets and liabilities, detailing the realization of assets and settlement of liabilities. It includes instructions for handling partner insolvency and the process for recording profit or loss on realization. Additionally, it defines a bill of exchange, identifies its parties, and provides a specimen format for such a document.

Uploaded by

kvenkatagiriraju
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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J. K. SHAH CLASSES S.Y.J.C.

- BOOK KEEPING & ACCOUNTANCY

Transfer Stage

Transfer of Assets & Liabilities

Assets Liabilities

Realisation A/c. Dr. Liabilities A/c. Dr.

To Assets A/c. To Realisation A/c.

Realisation Stage

Realisation of Assets & Settlement of Liabilities

Assets Liabilities

Cash/Bank A/c. (If sold) Dr. Realisation A/c. Dr.


Partner’s Capital A/c. (If takenover) To Cash/Bank A/c. (If paid)
To Realisation A/c. To Partner’s Capital A/c. (If takenover)

Settlement of Partner’s Loan

Partner’s Loan A/c. Dr.


To Cash/Bank A/c.

Payment of Realisation Expenses

Realisation A/c.
Dr.
To Cash/Bank A/c.

: 18 :
J. K. SHAH CLASSES S.Y.J.C.- BOOK KEEPING & ACCOUNTANCY

Profit or Loss on Realisation A/c

Profit Loss

Realisation A/c. Dr. All Partners’ Cap. A/c. Dr.


To All Partners’ Cap. A/c. To Realisation A/c.

Bhool Na Jana:

1. In case of insolvency of ONE partner, deficiency of insolvent partner shared by


solvent Partner in their PSR.

2. In case of insolvency of ALL partners, ‘Deficiency A/c.’ should be opened and


ultimate deficiency should be borne by creditors.

3. In case of insolvency of ALL partners,. Cash A/c. should be closed first before
closing of partners’ capital account.

Key to Solve this Question:

1. Question should be completed within 20-25 minutes.

: 19 :
J. K. SHAH CLASSES S.Y.J.C.- BOOK KEEPING & ACCOUNTANCY

CHAPTER 7 BILL OF EXCHANGE

Weightage: 16 Marks
Practical question 10 Marks Specimen of a bill 5 Marks Objectives 1 Mark

Definition of bill of exchange:


“An instrument in writing containing an unconditional order, signed by the maker,
directing a certain person, to pay on demand or at a future date a certain sum of
money only, to the order of a certain person, or to the bearer of the instrument.”

Parties to the bill of exchange:


1. Drawer: - Drawer is the person or a party who drawes a Bill of Exchange. He is
also known as maker of bill of exchange.
2. Drawee: - Drawee is a person or a party to whom the bill of exchange is drawn.
Drawee is the person who accepts the bill.
3. Payee: The Payee is a person or a party to whom the bill is made payable.

Specimen of a bill:
BILL OF EXCHANGE

Drawer’s Name
STAMP
Drawer’s address
Amount in
figures Date of bill drawn

after date, pay Mr / Ms


(Period of bill) Name and address of payee)

Or his/her order, the sum of Rupees


(Amount in words)
Only for the value received.
Sd/-
(Drawer’s Name)
(Drawee’s Name) (Accepted)

(Drawee’s Address) (Drawee’s Name)

(Date of Bill Accepted)

: 20 :

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