Question 23 Chapter 7 of +2-Part-1
23. (Realisation A/c/Partner’s Capital A/e) Cloud, Storm and Rain were partners in a firm sharing profits and losses in the ratio of 5: 3:2. Due to difference of opinion, they decided dissolve the partnership with effect from 1st April, 2019, on which date the firm’s balance sheet was as under :
| Liabilities | Rs. | Assets | Rs. |
| Capitals A/c | Plant & Machinery | 80,000 | |
| Cloud | 60,000 | Furniture & fixtures | 45,000 |
| Storm | 40,000 | Motor Car | 25,000 |
| Rain | 30,000 | Stock in trade | 30,000 |
| Current A/c | Sundry debtors | 71,000 | |
| Cloud | 8,000 | Cash at bank | 14,000 |
| Storm | 10,000 | Rain’s current A/c | 3,000 |
| Sundry Creditors | 1,20,000 | ||
| 2,68,000 | 2,68,000 |
The folllowing information is given :
- Plant costing Rs. 40,000 was taken over by Cloud at an agreed valuation of Rs.45,000 and the remaining
- machinery realised Rs. 50,000.
- Furniture and fixtures realised Rs. 40,000.
- Motor car was taken over by Storm for Rs. 30,000
- Sundry debtors included a bad debt of Rs. 1,200 and the rest were realised, subject to cash discount of 10%.
- Stock worth Rs. 75,000 was taken over by Rain and the rest realised at 20% above the book value.
- The creditor for Rs. 2,000 was untraceable and rest of creditors accepted payment allowing 15% discount .
Realisation expenses amounted to Rs.5,000.
You are required to show the realisation account and capital accounts of partners on dissolution, showing final payment to them.
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The solution of Question 23 Chapter 7 of +2 Part-1: –
| Realisation A/c |
|||||
| Particulars |
Amount | Particulars | Amount | ||
| To Sundry Debtors A/c | 71,000 | By Sundry Creditors A/c | 1,20,000 | ||
| To Stock–in-trade A/c | 30,000 | By Cloud’s Capital A/c | |||
| To furniture & fixtures A/c | 45,000 | Plant taken over | 45,000 | ||
| To Plant & machinery A/c | 80,000 | By Storm’s Capital A/c | |||
| To Motor Car A/c | 25,000 | Motor car taken over | 30,000 | ||
| To Bank A/c | By Rain’s Capital A/c | ||||
| Expenses | 5,000 | Stock taken over | 5,000 | ||
| Creditors | 1,00,300 | 1,05,300 | By bank A/c | ||
| To profit transferred to Capital A/cs. | Sundry Debtors | 62,820 | |||
| Cloud 5/10 | 13,260 | Furniture & fixtures | 40,000 | ||
| Storm 3/10 | 7,956 | Machinery | 50,000 | ||
| Rain 2/10 | 5,304 | 26,520 | Stock | 30,000 | |
| 3,82,820 | 3,82,820 | ||||
| Partners’ Capital Account | |||||||
| Particulars | Cloud | Storm | Rain | Particulars | Cloud | Storm | Rain |
| To Current A/c | 3,000 | By Balance b/d | 60,000 | 40,000 | 30,000 | ||
| To Realisation A/c | By current A/c | 8,000 | 10,000 | ||||
| Assets taken over | 45,000 | 30,000 | 5,000 | By Realisation A/c | 13,260 | 7,956 | 5,304 |
| To Bank A/c | 36,260 | 27,956 | 27,304 | ||||
| 81,260 | 57,956 | 35,304 | 81,260 | 57,956 | 35,304 | ||
| Bank A/c |
|||||
| Particulars | Amount | Particulars | Amount | ||
| To balance b/d | 14,000 | By Realisation A/c | |||
| To Realisation A/c | Expenses | 5,000 | |||
| Sundry Debtors | 62,820 | Creditors | 1,00,300 | ||
| Furniture & fixtures | 40,000 | By cloud’s capital A/c | 36,260 | ||
| Machinery | 50,000 | By Storm’s capital A/c | 27,956 | ||
| Stock | 30,000 | By Rain’s capital A/c | 27,304 | ||
| 1,96,820 | 1,96,820 | ||||
Comment if you have any questions.
End of Solution
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Chapter-Wise Solution of Usha Publication Accountancy – Part 1 Class 12 – Session 2024-25 as per the PSEB curriculum
Check out Solutions to all questions of the every chapter shown as under. The Solution of Accountancy – Part 1 Class 12 – Session 2024-25 is provided as per the new book published by Usha Publication.
Chapter No. 1 – Accounting Not-for-Profit Organisations (Deleted from the Syllabus)
Chapter No. 2 – Partnership Accounts – I (Introduction)
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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)
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- Chapter No. 1 – Accounts of Non-Profit Organisations (Deleted from the Syllabus)
- Chapter No. 2 – Partnership Accounts – I (Basic Concepts)
- Chapter No. 3 – Partnership Accounts – II (Goodwill)
- Chapter No. 4 – Partnership Accounts – III (Change in Profit Sharing Ratio among Existing Partners)
- 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)
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