Question 14 Chapter 7 of +2 Part-1 – USHA Publication 12 Class Part – 1

Question 14 Chapter 7 of +2- Part

Question 14 Chapter 7 of +2-Part-1

Free Accounting book Solution - Class 11 and Class 12

14. (Realisation A/c/Partner’s Capital Ne/Cash A/e) A, B and C are partners sharing Profits and Losses equally. They dissolve the firm on 31st March, 2018 on which date their position was as follows:

Liabilities  Rs. Assets  Rs. 
Capital A/c   FIXED ASSETS  1,00,000
A 30,000 CURRENT ASSETS  40,000
B 30,000 CASH & bank  10,000
C 30,000    
CREDITORS  60,000    
       
  1,50,000   1,50,000

All the assets realised 10 % less than the book value. Creditors were paid in full. Expenses of Liquidation amounted to Rs. 500 and a contingent liability not provided for at Rs. 500.
Prepare:
(i) Realisation accounts
(ii) Partners capital account
(iii) Cash account

The solution of Question 14 Chapter 7 of +2 Part-1: –

Revaluation A/c
Particulars
Amount Particulars Amount
To Fixed Assets   1,00,000 By creditors   46,300
To Currents Assets   40,000 By Bank A/c   2,89,820
To Bank A/c     By Fixed Assets 90,000  
To Creditors   60,000 By Currents Assets 36,000 1,26,000
To Expenses   500 By Capital A/c – loss :    
To Contingent liability   500 A 5,000  
      B 5,000  
      C 5,000 15,000
    2,01,000     2,01,000
Partners’ Capital Account 
Particulars A B C Particulars A B C
To Realisation A/c 5,000 5,000 5,000 By Balance b/d 30,000 30,000 30,000
               
               
               
               
To Balance c/d 25,000 25,000 25,000        
  30,000 30,000 30,000   30,000 30,000 30,000
Bank A/c
Particulars Amount Particulars Amount
To balance b/d   10,000 By Realisation A/c   61,000
To Realisation A/c   1,26,000 By A’s capital A/c   25,000
      By B’s capital A/c   25,000
      By C’s capital A/c   25,000
    1,36,000     1,36,000

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 14 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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