Question 30 Chapter 7 – Class 12 Part 1 Unimax

Question 30 Chapter 7 - Class 12 Part 1 Unimax

30. Y and Z were sharing profits in the ratio of 2 : 2 : . They agreed upon dissolution of their partnership on 31st March, 2022 on which date, their Balance Sheet was as under:

Liabilities		Amount	Assets		Amount
Capital—X		40,000	Fixed Assets		50,000
Capital—Y		30,000	Joint Life Policy		10,000
Reserve Fund		10,000	(At Surrender Value)
Joint Life Policy Fund		10,000	Bank		23,500
Creditors	19,000		Debtors	10,000
Less: Provision for Discount	500	18,500	Less: Provision	500	9,500
Salary Outstanding		2,000	Stock at Invoice Price	10,000
			Less: Price Unloading	2,000	8,000
			Investments	8,000
			Less: Fluctuation Fund	500	7,500
			Current Account—Z		2,000
		1,10,000			1,10,000

Investments were taken over by X at 6,000; Creditors of 10,000 were taken over by at 9,900. Remaining creditors were paid 7,500. Joint Life Policy was surrendered at book value, and fixed assets realised 70,000. Stock and debtors realised 7,000 and 9,000 respectively. One customer, whose account was written off as bad, now paid SOO which is not included in 9,000 above. There was one unrecorded asset estimated at 3,000, half of which was handed over to an unrecorded liability of 5,000 in settlement of 1,300.
claim of 2,500 and remaining half was sold in the market which realised Remaining unrecorded liability of 2,500 was paid by cheque.
400 per month. Y was to be an realisation expenses also. Actual realisation expenses Y took over the responsibility of completing the dissolution and he is granted a salary of amounted to 1,100. Dissolution was completed and final payments were made on 31st July, 2022.
You are required to prepare the Realisation Account, Capital Accounts and the Bank Account. Realisation expenses were paid out of firm's bank account on behalf of Y.

The solution of Question 30 Chapter 7 - Class 12 Part 1 Unimax: -

Realisation a/c

Particulars		Amount	Particulars		Amount
To Fixed Assets		50,000	By Provision for doubtful debts		500
To Joint Life Policy		10,000	By Investment Fluctuation Fund		500
To Debtors		10,000	By Joint Life Policy Fund		10,000
To Stock		8,000	By Creditors		19,000
To Investments		8,000	By Salary outstanding		2,000
To Provision for discount		500	By X's Capital A/c		6,000
To Y's Capital A/c			-Investments
-Creditors taken over	9,900		By Bank A/c
-Salary	1,600	11,500	JLP	10,000
To Bank A/c			Fixed Assets	70,000
Salaries outstanding (400 x 4)	2,000		Stock	7,000
Creditors	7,500		Debtors	9,000
Unrecorded Liability	2,500	12,000	Bad debt recovered	800
To Profit transferred to capital A/cs			Unrecorded asset	1,300	98,100
X	10,440
Y	10,440
Z	5,220	26,100
		1,36,100			1,36,100

Partner’s Capital a/c

Particulars	X	Y	Z	Particulars	X	Y	Z
To current A/c			2,000	By balanced b/d	40,000	30,000
To Realisation A/c	6,000			By Reserve Fund	4,000	4,000	2,000
(Investments)				By Realisation A/c		9,900
To Bank A/c		1,100		Creditors & Salary		1,600
To Cash A/c	48,440	54,840	5,220	By Realisation A/c	10,440	10,440	5,220
(Profit)
	54,440	55,940	7,220		54,440	55,940	7,220

Cash A/c

Particulars	Amount	Particulars	Amount
To Balance b/d	32,500	By Realisation A/c	12,000
To Realisation A/c	98,100	(Payment of Liabilities)
(assets realised)		By X’s capital A/c	48,440
		By Y’s capital A/c	54,840
		By Z’s capital A/c	5,220
		By Y’s capital A/c	1,100
	1,21,600		1,21,600