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

Question 23 Chapter 7 of +2- Part

Question 23 Chapter 7 of +2-Part-1

Free Accounting book Solution - Class 11 and Class 12

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 :

  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.

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 Debtors 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 Bank A/c     Motor car taken over   30,000
Expenses 5,000   Stock taken over   5,000
Creditors 1,00,300 1,05,300 By bank A/c    
To profit tfd.     Sundry Debtors   50,000
Cloud 5/10 13,260   Furniture & fixtures   40,000
Storm 3/10 7,956   Machinery   62,820
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 37,956 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   50,000 Creditors   1,00,300
Furniture & fixtures   40,000 By cloud’s capital A/c   36,260
Machinery   62,820 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
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 23 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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