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

Question 24 Chapter 7 of +2-Part-1

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

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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

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