Question 31 Chapter 7 of +2 Part-1 - USHA Publication 12 Class Part - 1

Question 31 Chapter 7 of +2-Part-1

31. (Realisation A/c/Capital A/c's/Bank A/e) Following was the Balance Sheet of Fox Wolf as at 31 March 2015, when they decided to dissolve the firm :

Liabilities	Rs.	Assets	Rs.
Creditors	88,500	Cash at bank	4,500
Capital A/c		Stock	18,000
Fox	30,000	Debtors	42,000
Wolf	24,000	Furniture	12,000
Ms. Wolf’s Loan	40,000	Machinery	1,06,500
Bills payable	23,000	Profit & Loss A/c	22,500
	2,05,500		2,05,500

The assets realised stock Rs. 10,500. Debtors 27,750, Machinery Rs. 89,000 Furniture was taken by Fox at Rs. 7,500. Bills payable were paid in full, while creditors were settled at 2% discount. Ms. Wolf accepted Rs. 38,500 in full settlement of her loan account There was claim for damages against the firm for Rs. 4,000 which was settled at Rs. 2,000.
One customer, whose account was written off as bad, now paid Rs. 1,800, which is not include in Rs. 27,750 given above actual realisation expenses amounted to Rs. 2,100.
Prepare the Realisation Account, Partner's Capital Account and Bank Account to close the books of the firm.

The solution of Question 31 Chapter 7 of +2 Part-1: -

Revaluation A/c

Particulars		Amount	Particulars		Amount
To Sundry Assets Transfer			By Sundry liabilities
To Stock A/c	18,000		Transfer creditors A/c	88,500
Debtors A/c	42,000		Bills payable A/c	23,000
Furniture	12,000		Ms. Wolf A/c	40,000	1,51,500
Machinery A/c	1,06,500	1,78,500	By Bank A/c
To Bank A/c			Assets realised
Liabilities paid off			Stock	10,500
Bills payable	23,000		Debtors	27,750
Creditors	86,730		Machinery	89,000	1,27,250
Mrs. Wolf			By Fox ’s capital A/c
Loan	38,500		Furniture taken over		7,500
Claim for damages	2,000	1,50,230	By Bank A/c (recovery for bad debts )		1,800
To Bank A/c Expenses		2,100	By loss on realisation
			Fox ’s capital A/c	21,390
			Wolf ’s capital A/c	21,390	42,780
		3,30,830			3,30,830

Partners’ Capital Account

Particulars	Fox	Wolf	Particulars	Fox	Wolf
To Profit & loss A/c	11,250	11,250	By Balance b/d	30,000	24,000
To Realisation A/c - -			By Bank A/c	10,140	8,640
Furniture taken over	7,500
To Realisation A/c – loss	21,390	21,390
	40,140	32,640		40,140	32,640

Bank A/c

Particulars		Amount	Particulars		Amount
To balance b/d		4,500	By Realisation A/c		1,50,230
To Realisation A/c			By Bank A/c		2,100
Assets realised	1,27,250
Recovery for bad debts	1,800	1,29,050
To Fox ’s capital A/c (cash brought in )		10,140
To Wolf’s capital A/c (cash brought in )		8,640
		1,52,330			1,52,330

Note : 1. Profit sharing ratio is not given . Therefore , profit/losses shall be shared equally .
2. Claim for damages was Rs. 4,000 but it was settled for Rs. 2,000 . Therefore , Rs. 2,000 shall be debited to Realisation Account .

Also, Check out the solved question of previous Chapters: -

Usha Publication - Accountancy PSEB (Class 12) - Volume I - Solution

• Chapter No. 1 - Accounting Not for Profit Organisations
• Chapter No. 2 - Partnership Accounts - I (Introduction)
• Chapter No. 3 - Partnership Accounts - II (Goodwill: Nature and Valuation)
• Chapter No. 4 - Partnership Accounts - III (Reconstitution of Partnership)
• Chapter No. 5 - Partnership Accounts - IV (Admission of A Partner)
• Chapter No. 6 - Partnership Accounts - V (Retirement and Death of A Partner)
• Chapter No. 7 - Partnership Accounts - VI (Dissolution of Partnership Firm)
• Chapter No. 8 - Company Accounts (Share Capital)
• Chapter No. 9 - Company Accounts (Issue of Debentures)
• Chapter No. 10 - Company Accounts (Redemption of Debentures)

Usha Publication - Accountancy PSEB (Class 12) - Volume II - Solution

• Chapter No. 1 - Financial Statements of a Company
• Chapter No. 2 - Financial Statement Analysis
• Chapter No. 3 –  Tools of Financial Statement Analysis- Comparative and Common Size
• Chapter No. 4 - Ratio Analysis
• Chapter No. 5 - Cash Flow Statement

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