# Question 26 Chapter 7 of +2 Part-1 – USHA Publication 12 Class Part – 1

Q-26. - CH-7 - Usha +2 Book 2018 - Solution

Question 26 Chapter 7 of +2-Part-1

26. (Realisation A/c/Partner’s Capital A/c/Cash A/e) L, M and N were partners in a firm sharing profits in the ratio of 2:2: 1. Balance sheet dated December 31, 2018 is as here under :

 Liabilities Rs. Assets Rs. Creditors 4,000 Cash 5,000 Reserve 10,000 Debtors 4,000 Capital  A/c Stock 5,000 L 4,000 Furniture 2,000 M 2,000 Building 9,000 N 5,000 25,000 25,000

Assets realised as follows:
Building Rs. 8,500: Furniture Rs. 1,500 : Stock Rs. 7,000 and Debtors Rs. 3,700. Creditors were settled at 2% less. L agreed to bear all realisation expenses for a consideration of Rs. 120. An unrecorded asset was taken over by M at Rs. 400.
Prepare necessary accounts to close the firm’s books.

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## The solution of Question 26 Chapter 7 of +2 Part-1: –

 Realisation A/c Particulars Amount Particulars Amount To Debtors A/c 4,000 By Sundry Debtors A/c 4,000 To Stock A/c 5,000 By M’s capital A/c 400 To furniture A/c 2,000 By Cash A/c To building 9,000 Debtors 3,700 To Cash A/c (creditors ) 3,920 Furniture 1,500 To L’s capital A/c Expenses 120 Stock 7,000 To capital A/c Building 8,500 20,700 L 424 M 424 N 212 1,060 25,100 25,100
 Partners’ Capital Account Particulars L M N Particulars L M N To Realisation A/c 400 By Balance b/d 10,000 4,000 2,000 By reserve 2,000 2,000 1,000 By REALISATION A/c 424 424 424 By REALISATION A/c 120 To Cash A/c 12,544 6,024 3,212 12,544 6,424 3,212 12,544 6,424 3,212
 Actual payment to creditors Rs Claim 4,000 less 2% 80 3,920
 Cash A/c Particulars Amount Particulars Amount To balance b/d 5,000 By Realisation A/c To Realisation A/c Creditors 3,920 Assets 20,700 By Capital A/c L 12,544 M 6,024 N 3,212 25,700 25,700

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