Question 25 Chapter 7 of +2-Part-1
25. (Asset taken over by Partners/Realisation A/c/Partner’s Capital A/c/Cash A/e) A, B and C are three partners sharing profits in the ratio of 3: 1: 1 on 31 March, 2015 they decided to dissolve their firm. On that date their balance sheet was an under.
| Liabilities | Rs. | Assets | Rs. |
| Creditors | 6,000 | Cash | 3,200 |
| Loan | 1,500 | Debtors 24,200 | |
| Capital A/c | Less provision 1,200 | 23,000 | |
| A | 27,500 | Stock in trade | 7,800 |
| B | 10,000 | Furniture | 1,000 |
| C | 7,000 | Sundry Assets | 17,000 |
| 52,000 | 52,000 |
It was agreed that
(i) A is to take over furniture at Rs. 800 and debtors amounting to Rs. 20,000 at Rs. 17,200; the creditors of Rs. 6,000 to be paid by him at this figure.
(ii) B is to take over all the stock in trade at Rs. 7,000 and some of the sundry assets at Rs. 7,200 Being 10% less than book value)
(iii) C is to take over the remaining Sundry Assets at 90% of the book value, less Rs. 100 as discount and assume the responsibility for the discharge of the loan together with accrued interest of Rs. 30 which has not been recorded in the books.
(iv) Expenses of dissolution were Rs. 270. The remaining debtors were sold to a debt collecting agency for 50% of the book value.
Prepare necessary accounts to close the books of the firm.
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The solution of Question 25 Chapter 7 of +2 Part-1: –
| Realisation A/c |
|||||
| Particulars |
Amount | Particulars | Amount | ||
| To Debtors A/c | 24,200 | By creditors | 6,000 | ||
| To Stock in trade A/c | 7,800 | By Provision for D/D | 1,200 | ||
| To furniture A/c | 1,000 | By Loan A/c | 1,500 | ||
| To Sundry Assets | 17,000 | By A’s capital A/c | |||
| To A’s capital A/c (creditors) | 6,000 | Debtors | 17,200 | ||
| To C’s capital A/c | Furniture | 800 | 18,000 | ||
| Loan | 1,500 | By B’s capital A/c | |||
| Outstanding Interest | 30 | Stock in trade | 7,000 | ||
| To Cash A/c | Sundry Assets | 7,200 | 14,200 | ||
| Expenses | 270 | By C’s capital A/c | 8,000 | ||
| By Cash A/c | 2,100 | ||||
| By loss transferred to Capital A/cs | |||||
| A | 4,080 | ||||
| B | 1,360 | ||||
| C | 1,360 | 6,800 | |||
| 57,800 | 57,800 | ||||
| Partners’ Capital Account | |||||||
| Particulars | A | B | C | Particulars | A | B | C |
| To Realisation A/c | By Balance b/d | 27,500 | 10,000 | 7,000 | |||
| Assets | 18,000 | 14,200 | 8,000 | By realisation A/c | 6,000 | 1,530 | |
| Loss | 4,080 | 1,360 | 1,360 | By Cash A/c | – | 5,560 | 830 |
| To Bank A/c | 11,420 | – | – | ||||
| 33,500 | 15,560 | 9,360 | 33,500 | 15,560 | 9,360 | ||
| Bank A/C |
|||||
| Particulars | Amount | Particulars | Amount | ||
| To balance b/d | 3,200 | By Realisation A/c | |||
| To Realisation A/c | 2,100 | Expenses | 270 | ||
| To B’s capital A/c | 5,560 | By A’s capital A/c | 11,420 | ||
| To C’s Capital A/c | 830 | ||||
| 11,690 | 11,690 | ||||
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)
Also, Check out our Comprehensive Chapter-wise solution of Advanced Accountancy Part 1 Class 12 by Unimax Publication
- 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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