Question 03 Chapter 7 of +2- Part

Question 03 Chapter 7 of +2-Part-1

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.DebitCredit
a)Realisation A/cDr. 10,000 
 To James capital A/c   10,000
 (Being James agrees to pay off )    
      
b)Cash A/cDr. 12,000 
 To Realisation A/c   12,000
 (Being cash realized from debtors on dissolution of partnership )    
      
c)Haider’s capital A/cDr. 12,000 
 To Realisation A/c   12,000
 (Being investments taken over by Haider on dissolution )    
      
d)Realisation A/cDr. 19,000 
 To Cash A/c   19,000
 (Being creditors paid off at 5 % discount on dissolution )    
      
e)Realisation A/cDr. 2,000 
 To Cash A/c   2,000
 (Being realisation expense paid off )    
      
f)James’s capital A/cDr. 6,800 
 Haider’s capital A/cDr. 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

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