Question 03 Chapter 7 of +2 Part-1 – USHA Publication 12 Class Part – 1

Question 03 Chapter 7 of +2- Part

Question 03 Chapter 7 of +2-Part-1

Free Accounting book Solution - Class 11 and Class 12

3. (Realisation Entries) Pass the necessary Journal Entries for the following transactions c the dissolution of the firm of James and Haider who were sharing profit and losses in th ratio of 2 1. The various assets (other than cash) and outside liabilities have bee transferred to realization account:

  1. James agreed to pay off his brother’s loan Rs. 10,000.
  2. Debtors realized Rs. 12,000.
  3. Haider took over all investments at Rs. 12,000.
  4. Sundry creditors Rs. 20,000 were paid at 5% discount.
  5. Realisation expenses amounted to Rs. 2,000.
  6. Loss on realization was Rs. 10,200.

The solution of Question 03 Chapter 7 of +2 Part-1: –

Journal
Date   Particulars
L.F. Debit Credit
a) Realisation A/c Dr.   10,000  
  To James capital A/c       10,000
  (Being James agrees to pay off )        
           
b) Cash A/c Dr.   12,000  
  To Realisation A/c       12,000
  (Being cash realized from debtors on dissolution of partnership )        
           
c) Haider’s capital A/c Dr.   12,000  
  To Realisation A/c       12,000
  (Being investments taken over by Haider on dissolution )        
           
d) Realisation A/c Dr.   19,000  
  To Cash A/c       19,000
  (Being creditors paid off at 5 % discount on dissolution )        
           
e) Realisation A/c Dr.   2,000  
  To Cash A/c       2,000
  (Being realisation expense paid off )        
           
f) James’s capital A/c Dr.   6,800  
  Haider’s capital A/c Dr.   3,400  
  To Realisation A/c       10,200
  (Being loss on distributed among partners )        
         

Comment if you have any questions.


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

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

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

Check out T.S. Grewal +2 Book 2020@ Official Website of Sultan Chand Publication

2 Book 1 min - Question 03 Chapter 7 of +2 Part-1 - USHA Publication 12 Class Part - 1
Vol. I: Accounting for Not-for-Profit Organizations and Partnership Firm

Leave a Reply

Your email address will not be published. Required fields are marked *