Question 25 Chapter 7 of +2 Part-1 – USHA Publication 12 Class Part – 1

Question 25 Chapter 7 of +2- Part
Q-25. - CH-7 - Usha +2 Book 2018 - Solution


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 6,000Cash3,200
Loan 1,500Debtors                 24,200  
Capital  A/c Less provision      1,20023,000
A27,500Stock in trade 7,800
B10,000Furniture  1,000
C7,000Sundry 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
To Debtors A/c 24,200By creditors 6,000
To Stock in trade A/c 7,800By Provision A/c – 1,200
To furniture A/c 1,000By Loan A/c 1,500
To Sundry Assets 17,000By A’s capital A/c17,200 
To A’s capital A/c (creditors) 6,000Debtors80018,000
To C’s capital A/c  Furniture  
Loan 1,500By B’s capital A/c  
Accrued Interest 30Stock in trade7,000 
   Sundry Assets7,20014,200
   By C’s capital A/c 8,000
   By Cash A/c 2,100
   By loss  
   A 4,080
   B 1,360
   C 1,360
  57,800  57,800
Partners’ Capital Account 
To Realisation A/c   By Balance b/d27,50010,0007,000
Assets18,00014,2008,000By realisation A/c6,000 1,530
Loss4,0801,3601,360By Cash A/c 5,560830
To Bank A/c11,420    
 33,50015,5609,360 33,50015,5609,360
Bank  A/C
To balance b/d 3,200By Realisation A/c  
To Realisation A/c 2,100Expenses 270
To B’s capital A/c 5,560By A’s capital A/c 11,420
To C’s Capital A/c 830   
  11,690  11,690

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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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