Question 23 Chapter 7 of +2 Part-1 - USHA Publication 12 Class Part - 1

1. Plant costing Rs. 40,000 was taken over by Cloud at an agreed valuation of Rs.45,000 and the remaining
2. machinery realised Rs. 50,000.
3. Furniture and fixtures realised Rs. 40,000.
4. Motor car was taken over by Storm for Rs. 30,000
5. Sundry debtors included a bad debt of Rs. 1,200 and the rest were realised, subject to cash discount of 10%.
6. Stock worth Rs. 75,000 was taken over by Rain and the rest realised at 20% above the book value.
7. The creditor for Rs. 2,000 was untraceable and rest of creditors accepted payment allowing 15% discount .
   Realisation expenses amounted to Rs.5,000.
   You are required to show the realisation account and capital accounts of partners on dissolution, showing final payment to them.

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The solution of Question 23 Chapter 7 of +2 Part-1: -

Realisation A/c

Particulars		Amount	Particulars		Amount
To Sundry Debtors A/c		71,000	By Sundry Creditors A/c		1,20,000
To Stock–in-trade A/c		30,000	By Cloud’s Capital A/c
To furniture & fixtures A/c		45,000	Plant taken over		45,000
To Plant & machinery A/c		80,000	By Storm’s Capital A/c
To Motor Car A/c		25,000	Motor car taken over		30,000
To Bank A/c			By Rain's Capital A/c
Expenses	5,000		Stock taken over		5,000
Creditors	1,00,300	1,05,300	By bank A/c
To profit transferred to Capital A/cs.			Sundry Debtors		62,820
Cloud 5/10	13,260		Furniture & fixtures		40,000
Storm 3/10	7,956		Machinery		50,000
Rain 2/10	5,304	26,520	Stock		30,000
		3,82,820			3,82,820

Partners’ Capital Account
Particulars	Cloud	Storm	Rain	Particulars	Cloud	Storm	Rain
To Current A/c			3,000	By Balance b/d	60,000	40,000	30,000
To Realisation A/c				By current A/c	8,000	10,000
Assets taken over	45,000	30,000	5,000	By Realisation A/c	13,260	7,956	5,304
To Bank A/c	36,260	27,956	27,304
	81,260	57,956	35,304		81,260	57,956	35,304

Bank A/c

Particulars		Amount	Particulars		Amount
To balance b/d		14,000	By Realisation A/c
To Realisation A/c			Expenses		5,000
Sundry Debtors		62,820	Creditors		1,00,300
Furniture & fixtures		40,000	By cloud’s capital A/c		36,260
Machinery		50,000	By Storm’s capital A/c		27,956
Stock		30,000	By Rain’s capital A/c		27,304
		1,96,820			1,96,820

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