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

Question 26 Chapter 7 of +2- Part

Question 26 Chapter 7 of +2-Part-1

Free Accounting book Solution - Class 11 and Class 12

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
4,000 Furniture  2,000
2,000 Building  9,000
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.

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

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 26 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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