Question 21 Chapter 7 of +2 Part-1 – USHA Publication 12 Class Part – 1

Question 21 Chapter 7 of +2-Part-1

21. (Realisation A/c/Bank A/c/Capital A/e) A and B are partners in 2:1 ratio. They dissolved their business on 30th Sept, 2018.

Liabilities	Rs.	Assets	Rs.
Capitals		Cash at bank	8,000
A	35,000	Stock	12,000
B	25,000	Debtors   30,000
A’s current A/c	13,000	Provision     2,000	28,000
General Reserve	6,000	Furniture	13,000
Creditors	21,000	Machinery	40,000
Bills payable	1,000
	1,01,000		1,01,000

Stock was taken over by A at 20% less Furniture and Machinery realised at book value Bad debts were Rs. 4,000. Expenses of dissolution were Rs. 3,000, of this half were paid by Bills payable and creditors were settled at Rs. 2,000 discount.
Show Realisation Account, Bank Account and Capital Account .

The solution of Question 21 Chapter 7 of +2 Part-1: –

Realisation A/c
Particulars		Amount	Particulars		Amount
To Debtors A/c		12,000	By provision for bad debts		12,000
To Stock A/c		30,000	By creditors		21,000
To furniture A/c		13,000	By Bills payable		1,000
To machinery A/c		40,000	By A’s Capital A/c – Stock		9,600
To Cash A/c			By bank A/c
Creditors	1,500		Debtors	26,000
Expenses	19,000		Furniture	13,000
Bills payable	1,000	21,500	Machinery	40,000	79,000
To B’s Capital A/c – Expense		1,500
			By capital A/c – loss :
			A	3,600
			B	1,800	5,400
		1,18,000			1,18,000

Partners’ Capital Account
Particulars	A	B	Particulars	A	B
To Realisation A/c			By Balance b/d	35,000	25,000
-stock	9,600	–	By current A/c	13,000
-loss	3,600	1,800	By Realisation A/c		1,500
			By general reserve	4,000	2,000
To Cash A/c	38,800	26,700
	52,000	28,500		52,000	28,500

Bank A/c
Particulars		Amount	Particulars		Amount
To balance b/d		8,000	By Realisation A/c
To Realisation A/c -Assets realised		79,000	Expenses		1,500
			Creditors & bills payable		20,000
			By A’s capital A/c		38,800
			By B’s capital A/c		26,700
		87,000			87,000

Comment if you have any questions
Also, Check out the solved question of previous Chapters: –

Usha Publication – Accountancy PSEB (Class 12) – Volume I – Solution

• Chapter No. 1 – Accounting Not for Profit Organisations
• Chapter No. 2 – Partnership Accounts – I (Introduction)
• Chapter No. 3 – Partnership Accounts – II (Goodwill: Nature and Valuation)
• Chapter No. 4 – Partnership Accounts – III (Reconstitution of Partnership)
• Chapter No. 5 – Partnership Accounts – IV (Admission of A Partner)
• Chapter No. 6 – Partnership Accounts – V (Retirement and Death of A Partner)
• Chapter No. 7 – Partnership Accounts – VI (Dissolution of Partnership Firm)
• Chapter No. 8 – Company Accounts (Share Capital)
• Chapter No. 9 – Company Accounts (Issue of Debentures)
• Chapter No. 10 – Company Accounts (Redemption of Debentures)

Usha Publication – Accountancy PSEB (Class 12) – Volume II – Solution

• Chapter No. 1 – Financial Statements of a Company
• Chapter No. 2 – Financial Statement Analysis
• Chapter No. 3 –  Tools of Financial Statement Analysis- Comparative and Common Size
• Chapter No. 4 – Ratio Analysis
• Chapter No. 5 – Cash Flow Statement

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