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Question 35 Chapter 7 of +2-Part-1
35. (Realisation A/c/Cash A/c/Partner's Capital A/e) A, B and were equal firm. On 31st March 2019 their balance sheet stood as follows
| 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 |
| 1,32,400 | 1,32,400 |
For the purpose of dissolution, investments were valued at RS. 18,000 and A took over the investments at this value. Fixed assets realised Rs. 29,700 whereas stock and debtors realize Rs. 80,000. Expenses of realisation amounted to Rs. 1,300. Creditors allowed a discount of Rs. 800. In addition one bill receivable for RS. 1,500 under discount was dishonoured as the acceptor had become insolvent and was unable to pay anything and hence the bill had to be met the by firm.
Prepare realisation account, cash book and partners capital accounts showing how accounts would finally be settled among the partners.
We are providing a solution of Question 35 Chapter 7 of +2 Part-1 in two formats. one is in Video format and another is in article format. Check out both formats as follows:
Realisation A/c
| Particulars |
Amount | Particulars | Amount | ||
|---|---|---|---|---|---|
| To Debtors | 62,600 | By Creditors A/c | 50,400 | ||
| To Stock A/c | 20,100 | By A’s capital A/c Investment | 18,000 | ||
| To investments | 16,000 | By bank A/c ( assets realised ) | |||
| To furniture | 6,500 | Debtors & Stock | 80,000 | ||
| To building | 23,500 | Fixed asset | 29,700 | 1,09,700 | |
| To bank A/c (liabilities & exp. paid ) | |||||
| Creditors | 49,600 | ||||
| Expenses | 1,300 | ||||
| Bill dishonored | 1,500 | By loss on realisation | |||
| A | 1,000 | ||||
| B | 1,000 | ||||
| C | 1,000 | 3,000 | |||
| 1,81,100 | 1,81,100 | ||||
Bank A/c
| Particulars | Amount | Particulars | Amount | ||
|---|---|---|---|---|---|
| To balance b/d | 3,700 | By Realisation A/c | |||
| To Realisation A/c | Payment to creditors | 49,600 | |||
| Debtors | 80,000 | Expense | 1,300 | ||
| Stock | 29,700 | Bill dishonored | 1,500 | ||
| By A’s capital A/c | 15,000 | ||||
| By B’s capital A/c | 28,000 | ||||
| By C’s capital A/c | 18,000 | ||||
| 1,13,400 | 1,13,400 | ||||
A’s capital A/c
| Particulars | Amount | Particulars | Amount | ||
|---|---|---|---|---|---|
| To Realisation A/c | By Balance b/d | 30,000 | |||
| -investment | 18,000 | By reserve fund | 4,000 | ||
| To Realisation A/c loss | 1,000 | ||||
| To Bank A/c | 15,000 | ||||
| 34,000 | 34,000 | ||||
B’s capital A/c
| Particulars | Amount | Particulars | Amount | ||
|---|---|---|---|---|---|
| To Realisation A/c | 1,000 | By Balance b/d | 25,000 | ||
| By reserve fund | 4,000 | ||||
| To Bank A/c | 28,000 | ||||
| 29,000 | 29,000 | ||||
C’s capital A/c
| Particulars | Amount | Particulars | Amount | ||
|---|---|---|---|---|---|
| To Realisation A/c | 1,000 | By Balance b/d | 15,000 | ||
| By reserve fund | 4,000 | ||||
| To Bank A/c | 18,000 | ||||
| 19,000 | 19,000 | ||||
Accounting & Commerce Educator
Sarbjit Singh holds a B.Com and M.Com degree and has over 12 years of teaching experience in double entry bookkeeping, financial accounting, and business studies.
This guide covers "Question 35 Chapter 7 of +2 Part-1 - USHA Publication 12 Class Part - 1", focusing on key definitions, step-by-step concepts, applications, and revision guidelines relevant to USHA Publication +2 Part 1.
It is primarily curated for Class 11 and Class 12 high school commerce, accounting, and economics students, as well as aspirants preparing for board exams or CA Foundation.
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