Question 14 Chapter 7 of +2 Part-1 - USHA Publication 12 Class 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
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 Content covered in this article:

The solution of Question 14 Chapter 7 of +2 Part-1: –
Usha Publication – Accountancy PSEB (Class 12) – Volume I – Solution
Usha Publication – Accountancy PSEB (Class 12) – Volume II – Solution

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		Fixed Assets	90,000
Creditors	60,000	Currents Assets	36,000	1,26,000
Expenses	500	By capital A/c – loss :
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 Sheet
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