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

Question 25 Chapter 7 of +2- Part

Question 25 Chapter 7 of +2-Part-1

Free Accounting book Solution - Class 11 and Class 12

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.

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 A/c –   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 17,200  
To A’s capital A/c (creditors)   6,000 Debtors 800 18,000
To C’s capital A/c     Furniture    
Loan   1,500 By B’s capital A/c    
Accrued Interest   30 Stock in trade 7,000  
      Sundry Assets 7,200 14,200
      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 
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
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 25 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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