Question 28 Chapter 7 – Class 12 Part 1 Unimax

Question 28 Chapter 7 - Class 12 Part 1 Unimax

28. The following was the Balance Sheet of Arvind and Balbir as on 31st December. 2022 :

Liabilities		Amount	Assets		Amount
Trade creditors		45,000	Cash		750
Bills payable		12,000	Bank		12,000
Mrs. Arvind's loan		7,500	Stock		7,500
Mrs. Balbir's loan		15,000	Investment		15,000
Reserve fund		15,000	Book debts	30,000
Investment fluctuation fund		1,500	Less: Provision	3,000	27,000
Capital accounts			Buildings		22,500
Arvind	15,000		Plant		30,000
Balbir	15,000	30,000	Goodwill		6,000
			Profit & Loss A/c		5,250
		1,26,000			1,26,000

The firm was dissolved on the above date under the following arrangements:
(i) Arvind promised to pay off Mrs. Arvind's loan and took away stock at 6,000.
(ii) Balbir took away half the investment at 10% discount.
(iii) Book debts realised 28,500.
(iv) Trade creditors and bills payable were due on an average basis one month after 31st December, but were paid immediately on 31st December at 6% discount p.a.
(v) Plant realised 37,500; Building 60,000 ; Goodwill 9,000 and remaining investment at 6,750.
(vi) An old typewriter written off completely from the firm books now estimated to realise 450. It was taken away by Balbir at this estimated price.
(vii) Realisation expenses were 1,500.
Show the realistion account, bank account and capital accounts of partners.

The solution of Question 28 Chapter 7 – Class 12 Part 1 Unimax: -

Realisation a/c

Particulars		Amount	Particulars		Amount
To Stock		7,500	By Provision for doubtful debts		3,000
To Investment		15,000	By Trade creditors		45,000
To Book debts		30,000	By Bills payable		12,000
To Buildings		22,500	By Mrs. Arvind loan		7,500
To Plant		30,000	By Mrs. Balbir loan		15,000
To Goodwill		60,000	By Investment fluctuation Fund		1,500
To Arvind's capital a/c			By Arvind capital account-		6,000
-Mrs. Arvind loan		7,500	Stock
To Bank account			By Balbir capital account
-Creditors & bills payable		56,715	-Investment	6,750
-Mrs. Balbir loan		15,000	-Typewriter	450	7,200
-Realisation expenses		1,500	By Bank account
To Profit on realisation transferred to capital accounts			-Book debts	28,500
-Arvind	23,617.50		-Plant	37,500
-Balbir	23,617.50	47,235	-Building	60,000
			-Goodwill	6,750	1,41,750
			-Investment
		2,38,950			2,38,950

Partner’s Capital a/c

Particulars	Arvind	Balbir	Particulars	Arvind	Balbir
To Profit and loss A/c	2,625	2,625	By balance b/d	15,000	15,000
To Realisation A/c			By Reserve Fund	7,500	7,500
-Stock	6,000		By realisation A/c
-Investment		6,750	-Mrs. Arvind loan	7,500
-Typewriter		450	-Profit	23,617.50	23,617.50
To Bank A/c	44,992.50	44,992.50
	53,617.50	53,617.50		53,617.50	53,617.50

Bank A/c

Particulars	Amount	Particulars	Amount
To Balance b/d (12,000 + 750)	12 750.00	By Realisation A/c
To Realisation A/c		-Creditors & bills payable	56,715.00
-Book debts	28,500	-Mrs. Balbir loan	15,000.00
-Plant	37,500	-Realisation expenses	1,500.00
-Buildings	60,000	By Arvind capital account	44,992.50
-Goodwill	9,000	By Balbir capital account	44,992.50
-Investments	6,750
	1,54,500		1,54,500