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

Question 21 Chapter 7 of +2- Part

Question 21 Chapter 7 of +2-Part-1

Free Accounting book Solution - Class 11 and Class 12

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
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

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 21 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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