Question 14 Chapter 7 of +2- Part

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
A30,000CURRENT ASSETS 40,000
B30,000CASH & bank 10,000
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.
(i) Realisation accounts
(ii) Partners capital account
(iii) Cash account

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

Revaluation A/c
To Fixed Assets 1,00,000By creditors 46,300
To Currents Assets 40,000By Bank A/c 2,89,820
To Bank A/c  Fixed Assets90,000 
Creditors 60,000Currents Assets36,0001,26,000
Expenses 500By capital A/c – loss :  
Contingent liability 500A5,000 
  2,01,000  2,01,000
Partners’ Capital Account 
To Realisation A/c5,0005,0005,000By Balance b/d30,00030,00030,000
To Balance c/d 25,00025,00025,000    
 30,00030,00030,000 30,00030,00030,000
Bank Sheet
To balance b/d 10,000By Realisation A/c 61,000
To Realisation A/c 1,26,000By 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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