Question 23 Chapter 7 of +2 Part-1 – USHA Publication 12 Class Part – 1

Question 23 Chapter 7 of +2- Part
Q-23. - CH-7 - Usha +2 Book 2018 - Solution


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 & Machinery80,000
Cloud 60,000Furniture  & fixtures45,000
Storm 40,000Motor Car 25,000
Rain30,000Stock in trade30,000
Current A/c Sundry debtors71,000
Cloud 8,000Cash at bank 14,000
Storm 10,000Rain’s current A/c 3,000
Sundry Creditors 1,20,000  
 2,68,000 2,68,000

The folllowing information is given :

  1. Plant costing Rs. 40,000 was taken over by Cloud at an agreed valuation of Rs.45,000 and the remaining
  2. machinery realised Rs. 50,000.
  3. Furniture and fixtures realised Rs. 40,000.
  4. Motor car was taken over by Storm for Rs. 30,000
  5. Sundry debtors included a bad debt of Rs. 1,200 and the rest were realised, subject to cash discount of 10%.
  6. Stock worth Rs. 75,000 was taken over by Rain and the rest realised at 20% above the book value.
  7. 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
To Sundry Debtors A/c 71,000By Sundry Debtors A/c 1,20,000
To Stock–in-trade A/c 30,000By Cloud’s Capital A/c  
To furniture & fixtures A/c 45,000Plant taken over 45,000
To Plant & machinery A/c 80,000By Storm’s Capital A/c  
To Bank A/c  Motor car taken over 30,000
Expenses5,000 Stock taken over 5,000
Creditors1,00,3001,05,300By bank A/c  
To profit tfd.  Sundry Debtors 50,000
Cloud 5/1013,260 Furniture & fixtures 40,000
Storm 3/107,956 Machinery 62,820
Rain 2/105,30426,520Stock 30,000
  3,82,820  3,82,820
Partners’ Capital Account  
To Current A/c  3,000By Balance b/d60,00040,00030,000
To Realisation A/c   By current A/c8,00010,000 
Assets taken over45,00030,0005,000By Realisation A/c13,2607,9565,304
To Bank A/c36,26037,95627,304    
 81,26057,95635,304 81,26057,95635,304
Bank A/c
To balance b/d 14,000By Realisation A/c  
To Realisation A/c  Expenses 5,000
Sundry Debtors 50,000Creditors 1,00,300
Furniture & fixtures 40,000By cloud’s capital A/c 36,260
Machinery 62,820By Storm’s capital A/c 27,956
Stock 30,000By Rain’s capital A/c 27,304
  1,96,820  1,96,820

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

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


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