Question 15 Chapter 7 of +2 Part-1 – USHA Publication 12 Class Part – 1

Question 15 Chapter 7 of +2- Part

Question 15 Chapter 7 of +2-Part-1

Free Accounting book Solution - Class 11 and Class 12

15. (Realisation A/c/GST) Following is the Balance Sheet of Rama and Krishna who are equal partners on 31-3-2013, on which date the firm is dissolved :

Liabilities  Rs. Assets  Rs. 
Bank overdraft  10,000 Cash in hand  6,000
Reserve  20,000 Stock  40,000
Sundry Creditors  30,000 Debtors 24,000
Capitals    Machinery  20,000
Rama  50,000 Land & Buildings  60,000
Krishna 40,000    
       
  1,50,000   1,50,000

Assets realised as follows:
Land and Building Rs. 90,000
Machinery 80%
Stock 75%
Debtors Rs. 20,000
CGST and SGST were levied on Sale of Land & Building and Machinery @ 9% each. These Taxes were deposited with Govt. Department. Expenses on realisation amounted to 2,000. Prepare a Realisation Account.

The solution of Question 15 Chapter 7 of +2 Part-1: –

Revaluation A/c
Particulars
Amount Particulars Amount
To Stock   40,000 By Over draft   10,000
To Debtors   24,000 By creditors   30,000
To Machinery   20,000 By Cash A/c    
To land & buildings   60,000 By Building   90,000
To Cash     By Machinery   16,000
To Over draft   10,000 By Debtors   20,000
To Creditors   30,000 By Stock   30,000
To Expenses   2,000      
To profit          
Rama 5,000        
Krishna 5,000 10,000      
           
    1,96,000     1,96,000
Partners’ Capital Account 
Particulars Ram Krishna Particulars Ram Krishna
      By Balance b/d 50,000 40,000
      By Reserve 10,000 10,000
      By Realisation A/c 5,000 5,000
           
           
To Cash A/c 65,000 55,000      
  65,000 55,000   65,000 55,000
Cash Sheet
Particulars Amount Particulars Amount
To balance b/d   6,000 By Realisation A/c   42,000
To output CGST   9,540 By output CGST   9,540
To output SGST   9,540 By output SGST   9,540
To Realisation A/c   1,56,000 By Rama capital A/c   65,000
      By Krishna capital A/c   55,000
    1,62,000     1,62,000
Journal
Date   Particulars
L.F. Debit Credit
I) Journal Entry for Sale of Assets .      
  Cash A/c Dr.   1,35,080  
  To Realisation A/c       1,16,000
  To output CGST       9,540
  To output SGST       9,540
  (Being assets realized at the time dissolution)        
           
ii) Journal Entry for deposit of GST with Govt.        
  Output CGST Dr.   9,540  
  Output SGST Dr.   9,540  
  To Bank A/c       19,080
  (Being GST collected deposited with Govt.)        
         

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 15 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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