Question 17 Chapter 7 of +2 Part-1 – USHA Publication 12 Class Part – 1

Question 17 Chapter 7 of +2- Part

Question 17 Chapter 7 of +2-Part-1

Free Accounting book Solution - Class 11 and Class 12

17. (Journal/Realisation A/e/Partner’s Capital A/c/Cash A/e) A, B and C decided to dissolve partnership. The position as on 31st December 2015, the date of dissolution was as follows

Liabilities  Rs. Assets  Rs. 
Creditors  2,750 Furniture  50
A’s loan A/c  300 Stock  1,750
Capitals    Debtors  2,400
A 1,000 Bills receivable  300
B 500 Cash  100
C 50    
       
  4,600   4,600

They shared profits and losses in the ratio of A 1/2: B 3/10 and C 1/5. Rs. 200 of the debtors proved bad: the bills receivable were paid in full; the stock realised Rs. 1,700; furniture was taken over by B at book value and the expenses of realisation amounted to Rs. 200.
Close the books of the firm.

The solution of Question 17 Chapter 7 of +2 Part-1: –

Realisation A/c
Particulars
Amount Particulars Amount
To Stock   1,750 By creditors   2,750
To Debtors   2,400 By Bank A/c    
To bills receivable   300 Debtors 2,200  
To Furniture A/c   50 Bills receivable 300  
To Cash     Stock 1,700 4,200
Creditors   2,750 By B’s capital A/c   50
Expenses   200      
           
           
      By capital A/c – loss :    
      A 225  
      B 135  
      C 90 450
    7,450     7,450
Partners’ Capital Account   
Particulars A B C Particulars A B C
To realisation A/c   50   By Balance b/d 1,000 500 50
To realisation A/c 225 135 90 By cash     40
               
               
To Cash A/c 775 315          
  1,000 500 90   1000 500 90
Cash Sheet
Particulars Amount Particulars Amount
To balance b/d   100 By Realisation A/c   2,950
To Realisation A/c   4,200 By A’s capital A/c   775
To C’s capital A/c   40 By B’s capital A/c   315
      By A’s loan A/c   300
           
    4,340     4,340

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 17 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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