Question 22 Chapter 7 of +2 Part-1 – USHA Publication 12 Class Part – 1

Question 22 Chapter 7 of +2-Part-1

22. (Realisation A/e/Bank A/c/Capital A/e) X, Y and 2 were in partnership 7.2 1 and the balance sheet of the firm on 31 December 2018 was

Liabilities	Rs.	Assets	Rs.
Creditors	11,210	Stock	11,240
Plant deprecation reserve	20,000	Debtors	8,740
Capitals		Goodwill	10,000
X	12,410	Patents	38,080
Y	8,650	Bank	1,210
Z	80,620	100 shares in X ltd. At cost	2,400
		1000 shares in ltd. At cost	10,000
		Plant	31,220
	1,32,890		1,32,890

It was agreed to dissolve the Partnership and the terms of dissolution were :

1. X to take over the building at an agreed figure of Rs. 31,500.
2. Y who was to carry on business, to take over the goodwill, stock and debtors at book values, the patents at Rs. 30,000 and plant at Rs. 5,000. He was also to pay off the creditors.
3. Z to take over shares in X Ltd. at Rs. 15 each.
4. The shares in Y Ltd. to be divided in Profit sharing ratio.
   Give the necessary Ledge accounts recording the dissolution in the books of the firm

The solution of Question 22 Chapter 7 of +2 Part-1: –

Revaluation A/c
Particulars		Amount	Particulars		Amount
To Building		20,000	By Sundry creditors		11,210
To Plants		31,220	By Plant depreciation reserve		20,000
To Goodwill		10,000	By X’s Capital A/c
To Shares in X Ltd.		2,400	Building	31,500
To Stock in Y Ltd.		10,000	Shares in Y Ltd.	7,000	38,500
To Stock		11,240	By Y’s Capital A/c
To Debtors		8,740	Goodwill	10,000
To Patents		38,080	Stock	11,240
			Debtors	8,740
			Patents	30,000
			Plants	5,000
			Shares in Y Ltd.	2,000	66,980
			By Z’s Capital A/c
			Shares in X Ltd.	1,500
			Shares in Y Ltd.	1,000	2,500
			By capital A/c – loss :
			X	2,590
			Y	740
			Z	370	3,700
		1,42,890			1,42,890

Bank A/c
Particulars		Amount	Particulars		Amount
To balance b/d		1,210	By Z’s capital A/c		77,750
To X’s capital A/c		28,680
To Y’s capital A/c		47,860
		77,750			77,750

X’s capital accounts
Particulars		Amount	Particulars		Amount
To Realisation A/c			By Balance b/d		12,410
-building	31,500		By Bank A/c		28,680
-shares in Y ltd.	7,000	38,500
To Realisation A/c loss		2,590
		41,090			41,090

Y’s capital accounts
Particulars		Amount	Particulars		Amount
To Realisation A/c			By Balance b/d		8,650
Goodwill	10,000		By Realisation A/c
Stock	11,240		Creditors		11,210
Debtors	8,740		By Bank A/c		47,860
Patents	30,000
Plants	5,000
Shares in Y Ltd.	2,000	66,980
To Realisation A/c loss		740
		67,760			67,760

Z’s capital accounts
Particulars		Amount	Particulars		Amount
To Realisation A/c			By Balance b/d		80,620
Shares in X Ltd.	1,500
Shares in Y Ltd.	1,000	2,500
To Realisation A/c loss		370
To Bank A/c		77,750
		80,620			80,620

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

Check out T.S. Grewal +2 Book 2020@ Official Website of Sultan Chand Publication