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

Question 14 Chapter 7 of +2-Part-1

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

• Chapter No. 1 – Accounting Not for Profit Organisations
• Chapter No. 2 – Partnership Accounts – I (Introduction)
• Chapter No. 3 – Partnership Accounts – II (Goodwill: Nature and Valuation)
• Chapter No. 4 – Partnership Accounts – III (Reconstitution of Partnership)
• Chapter No. 5 – Partnership Accounts – IV (Admission of A Partner)
• Chapter No. 6 – Partnership Accounts – V (Retirement and Death of A Partner)
• Chapter No. 7 – Partnership Accounts – VI (Dissolution of Partnership Firm)
• Chapter No. 8 – Company Accounts (Share Capital)
• Chapter No. 9 – Company Accounts (Issue of Debentures)
• Chapter No. 10 – Company Accounts (Redemption of Debentures)

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

• Chapter No. 1 – Financial Statements of a Company
• Chapter No. 2 – Financial Statement Analysis
• Chapter No. 3 –  Tools of Financial Statement Analysis- Comparative and Common Size
• Chapter No. 4 – Ratio Analysis
• Chapter No. 5 – Cash Flow Statement

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