Question 16 Chapter 7 of +2 Part-1 – USHA Publication 12 Class Part – 1

Question 16 Chapter 7 of +2- Part

Question 16 Chapter 7 of +2-Part-1

Free Accounting book Solution - Class 11 and Class 12

16. (Journal/Realisation A/c/Capital A/c/Cash A/c) Thapa and Sudarshan are partners sharing profits and losses as to 3/5 and 2/5. Their Balance sheet on 31st March, 2018 was as follows :

Liabilities  Rs. Assets  Rs. 
Creditors 528 Cash  363
Reserve for contingencies  500 Investments  2,080
Bank loan  1,000 Debtors  2,960
Capitals    Stock  1,875
Thapa  6,000 Furniture  2,750
Sudarshan  2,000    
       
       
  10,028   10,028

They dissolved the firm on this date and assets with the exception of cash and investments were sold for Rs. 6,900. The investments were taken over by Sudarshan at Rs. 2,200 and he agreed to pay the bank loan. The realisation expenses were Rs. 110 and the creditors were paid Rs. 503 in full settlement.
Give various ledger accounts to show the dissolution of the firm. Also give journal entries .

The solution of Question 16 Chapter 7 of +2 Part-1: –

Revaluation A/c
Particulars
Amount Particulars Amount
To investments A/c   2,080 By creditors   528
To Debtors   2,960 By Bank Loan A/c   1,000
To Stock A/c   1,875 By cash A/c – Sale of assets   6,900
To Furniture A/c   2,750 By Sudarshan’s capital   2,200
To Sudarshan’s capital          
Bank loan   1,000      
To cash A/c          
Creditors   503      
Expenses   110      
      By capital A/c – loss :    
      Thapa 390  
      Sudarshan 260 650
    11,278     11,278
Partners’ Capital Account 
Particulars Thapa Sudarshan Particulars Thapa Sudarshan
To realisation A/c   2,200 By Balance b/d 6,000 2,000
To realisation A/c 390 260 By Reserve 300 200
      By Realisation A/c   1,000
           
To Cash A/c 5,910 740      
  6,300 3,200   6,300 3,200
Cash A/c
Particulars Amount Particulars Amount
To balance b/d   363 By Realisation A/c    
To Realisation A/c   6,900 Creditors   503
      Expenses   110
      By Thapa’s capital A/c   5,910
      By Sudarshan’s capital A/c   740
    7,263     7,263

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 16 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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