Question 30 Chapter 7 of +2 Part-1 - USHA Publication 12 Class Part - 1

Question 30 Chapter 7 of +2-Part-1

30. (Realisation A/c/Capital A/e's/Bank A/e) The Balance sheet of A, B and C sharing profits and losses as 3:2 :1 respectively stood as follows on June 30, 2019.

Liabilities	Rs.	Assets	Rs.
Creditors	50,400	Cash at Bank	3,700
Joint life policy reserve A/c	10,000	Stock	20,100
Reserve Fund	12,000	Debtors	62,600
Capital A/c :		INVESTMENTS	16,000
A	30,000	Furniture	6,500
B	20,000	Buildings	23,500
C	10,000
	1,32,400		1,32,400

The firm was dissolved on that date. For the purpose of dissolution, the investment were valued at Rs.18,000 and stock at Rs. 17.500: A agreed to take over investment and B to take over stock, C took over furniture at book value. Debtors and buildings realised Rs. 57,000 and Rs. 25,000 respectively. Expenses of realisation amounted to Rs. 450.
In addition one bill for Rs. 500 under discount was dishonored and had to be taken up by the firm.
Prepare necessary ledger accounts to close the books of the firm

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Realisation A/c

Particulars		Amount	Particulars		Amount
To Debtors A/c		62,600	By Debtors A/c		50,400
To Stock A/c		20,100	By Joint life policy reserve		10,000
To investments		16,000	By A’s capital A/c		18,000
To furniture		6,500	By B’s capital A/c		17,500
To building		23,500	By C’s capital A/c		6,500
To bank A/c (liabilities & exp. paid )			By bank A/c ( assets realised )
Creditors		50,400	Debtors		57,000
Realisation Expenses		450	Building		25,000
Bill dishonored		500
To profit on realisation
A		2,175
B		1,450
C		725
		1,84,400			1,84,400

Partners’ Capital Account

Particulars	A	B	C	Particulars	A	B	C
To Realisation A/c				By Balance b/d	30,000	20,000	10,000
Assets taken over	18,000	17,500	6,500	By reserve fund	6,000	4,000	2,000
				By realisation A/c Profit on realisation	2,175	1,450	725
To Bank A/c	20,175	7,950	6,225
	38,175	25,450	12,725		38,175	25,450	12,725

Bank A/c

Particulars		Amount	Particulars		Amount
To balance b/d		3,700	By Realisation A/c
To Realisation A/c			Liabilities & exp. Paid		51,350
Assets realised		82,000	By A’s capital A/c		20,175
			By B’s capital A/c		7,950
			By C’s capital A/c		6,225
		85,700			85,700