Question 18 Chapter 7 of +2 Part-1 – USHA Publication 12 Class Part – 1

Question 18 Chapter 7 of +2- Part

Question 18 Chapter 7 of +2-Part-1

Free Accounting book Solution - Class 11 and Class 12

18. (Realisation A/c/Partner’s Capital A/e) X. Y and Z are three partners. Their sharing ratio was 3:2: 1. Their balance sheet on 30th September 2015 was as under

Liabilities  Rs. Assets  Rs. 
Creditors  5,000 Stock  5,000
Z’s loan A/c  3,000 Debtors  10,000
X’s current A/c 1,000 Goodwill  15,000
Z’s current A/c  500 Furniture  4,000
Capitals    Cash  1,000
X 15,000 Y’s current A/c  5,000
5,500    
Z 10,000    
  40,000   40,000

Firm was dissolved on above date :

  1. Goodwill was purchased by Z for Rs. 12,000.
  2. X purchased stock for Rs. 6,000
  3. Realisation from debtors was 10%less.
  4. Furniture was auctioned for Rs. 3,000.
  5. Dissolution expenses were Rs. 500.
  6. Partners will pay cash, if necessary.
  7. Creditors were paid in full.
    Prepare realisation account and partners capital accounts.

The solution of Question 18 Chapter 7 of +2 Part-1: –

Realisation A/c
Particulars
Amount Particulars Amount
To Stock   5,000 By creditors   5,000
To Debtors   10,000 By Bank A/c    
To goodwill A/c   15,000 Debtors 9,000  
To Furniture A/c   4,000 Furniture 3,000 12,000
To Cash     By X’s capital A/c- Stock taken over   6,000
Creditors   5,000 By Z’s capital A/c – Goodwill taken over   12,000
Expenses   500      
      By capital A/c – loss :    
      X 2,250  
      Y 1,500  
      Z 750 4,500
    39,500     39,500
Partners’ Capital Account   
Particulars X Y Z Particulars X Y Z
To Current A/c   5,000   By Balance b/d 15,000 5,500 10,000
To Realisation A/c- Goodwill /stock 6,000   12,000 By current A/c 1,000   500
To Realisation A/c -loss  2,250 1,500 750 By cash A/c   1,000  
               
To Cash A/c 7,750 –         
  16,000 6,500 12,750   16,000 6,500 12,750
Cash A/c
Particulars Amount Particulars Amount
To balance b/d   1,000 By Realisation A/c   2,950
To Realisation A/c Debtors   9,000 Creditors   5,000
Furniture   3,000 Expenses   500
To Y’s capital A/c   1,000 By Z’s loan A/c   3,000
To Z’s capital A/c   2,250 By X’s capital A/c   7,750
    16,250     16,250

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 18 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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