Question 24 Chapter 7 of +2 Part-1 – USHA Publication 12 Class Part – 1

Question 24 Chapter 7 of +2- Part

Question 24 Chapter 7 of +2-Part-1

Free Accounting book Solution - Class 11 and Class 12

24. (Realisation A/c/Partner’s Capital A/c/Cash A/e) A, B and C were sharing profits & losses in the ratio of 5: 3:2. On 1st January, 2016, their Balance sheet was as under :

Liabilities  Rs. Assets  Rs. 
Sundry Creditors  11,500 Furniture  & fixtures 3,000
General reserve   5,000 Stock  13,000
Capital  A/c   Debtors                 20,000   
A 10,000 Less provision      1,000 19,000
B 8,000 Cash  1,000
C 1,500    
  36,000   36,000

The firm was dissolved on that date. The assets realised were as under –
Furniture and fixtures Rs. 1,000
Stock Rs. 10,000
Debtors Rs. 12,000
Rs. 500 of the creditors were not to be paid and the remaining creditors were paid at a discount of 5%. It was found, however, that there was a liability for Rs. 3,050 for damages, which had to be paid. The expenses amounted to Rs. 1,000. Give ledger accounts to close the books of the firm

The solution of Question 24 Chapter 7 of +2 Part-1: –

Revaluation A/c
Particulars
Amount Particulars Amount
To Debtors A/c   20,000 By Sundry Creditors A/c   11,500
To Stock A/c   13,000 By Provision A/c –   1,000
To furniture & fixtures A/c   3,000 By Cash A/c    
To Cash A/c     Debtors   12,000
Creditors   10,450 Furniture & fixtures   1,000
Expenses   3,050 Stock   10,000
Liability for damages   1,000      
      By loss    
      A   7,500
      B   4,500
      C   3,000
           
    50,500     50,500
Cash A/c
Particulars Amount Particulars Amount
To balance b/d   1,000 By Realisation A/c    
To Realisation A/c     Expenses   1,000
Debtors   1,000 Creditors   10,450
Furniture & fixtures   10,000 Liability for damages   3,050
Stock   12,000 By A’s capital A/c   5,000
To C’s Capital A/c   500 By B’s capital A/c   5,000
    24,500     24,500
Partners’ Capial A/c
Particulars A B C Particulars A B C
To Realisation A/c – loss 7,500 4,500 3,000 By Balance b/d 10000 8,000 1,500
To Cash A/c 5,000 5,000 By General Reserve 2,500 1,500 1,000
        By Cash A/c 500
               
               
               
  12,500 9,500 3,000   12,500 9,500 3,000

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 24 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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