Question 38 Chapter 7 of +2 Part-1 - USHA Publication 12 Class Part - 1

1. Investments were taken over by Bhuvan for Rs. 18,000.
2. Stock was taken over by Suraj for Rs. 17,500 and Furniture was taken over by Ibrahim at book value.
3. Rs. 60,500 were realised from the debtors.
4. Creditors were settled in full and realisation expenses were Rs. 4,500.
   Prepare Realisation Account, Cash Account and Partners' Capital Accounts.

The solution of Question 38 Chapter 7 of +2 Part-1: -

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Realisation A/c

Particulars		Amount	Particulars		Amount
To Debtors		62600	By creditors A/c		50,400
To Stock		20100	By investments fluctuation fund		10,000
To investment		16000	By Bhuvan’s capital A/c -investment		18,000
To furniture		20000	By Suraj’s capital A/c -Stock		17,500
To Cash A/c Creditors		50400	By Ibrahim’s capital A/c - Furniture		20,000
To Cash A/c Realisation Expenses		4500	By Cash A/c -Debtors		60,500
To profit on realisation
Bhuvan’s capital A/c	1,400
Suraj’s capital A/c	933
Ibrahim’s capital A/c	467	2,800
		1,76,400			1,76,400

Partners’ Capital Account

Particulars	Bhuvan	Suraj	Ibrahim	Particulars	Bhuvan	Suraj	Ibrahim
To Realisation A/c	18,000	17,500	20,000	By Balance b/d	30,000	20,000	10,000
				By reserve	6,000	4,000	2,000
				By Realisation A/c	1,400	933	467
To Cash A/c	19,400	7,433		By Cash A/c			7,533
	37,400	24,933	20,000		37,400	24,933	20,000

Bank A/c

Particulars		Amount	Particulars		Amount
To balance b/d		13,700	By realisation A/c Creditors		50,400
To Realisation A/c			By realisation A/c Realisation Expenses		4,500
Debtors		60,500	By Bhuvan’s capital A/c		19,400
To Ibrahim’s capital A/c		7,533	By Suraj’s capital A/c		7,433
		81,733			81,733