Question 28 Chapter 7 of +2 Part-1 – USHA Publication 12 Class Part – 1

Question 28 Chapter 7 of +2- Part

Question 28 Chapter 7 of +2-Part-1

Free Accounting book Solution - Class 11 and Class 12

28. (Realisation A/c/Cash A/c/Sundry Creditors Ale/Partner’s Capital Ae) is the Balance sheet of A and B as on 31st December, 2018. The profit sharing ratios of the partners are 3:2.

Liabilities  Rs. Assets  Rs. 
Creditors  975,000 LAND & Building  30,000
Capital A/c   Motor vehicles  18,300
A 85,000 Debtors              1,13,200   
B 63,000 Less provision      2,450 2,07,750
    Stock 72,800
    Bank   10,000
    Cash   3,650
       
  2,45,500   2,45,500

The partners decided to dissolve the firm on and from the date of the balance sheet Motor vehicles and stock were sold for cash at Rs. 16,950 and Rs. 77,600 respectively and all debtors accounts were realised in full. A took over the land and building at an agreed valuation of Rs. 43,500. Creditors were paid off subject to discount amounting to Rs. 1,700 Expenses of realisation were Rs. 1,250.
Prepare realisation account, cash account, sundry creditors account and partners capital accounts to close the books of the firm as result of its dissolution.

The solution of Question 28 Chapter 7 of +2 Part-1: –

Realisation A/c
Particulars
Amount Particulars Amount
To Debtors A/c   1,13,200 By Debtors A/c   97,500
To Stock A/c   72,800 By Provision for debts A/c –   2,450
To motor vehicles A/c   18,300 By cash A/c    
To land & building A/c   30,000 Debtors 1,13,200  
To cash A/c     Motor vehicles 16,950  
Realisation Expenses 95,800   Stock 77,600 2,07,750
Creditors paid off 1,250 97,050 By A’s capital A/c    
To profit on realisation     Land & Building taken over   43,500
A’s capital A/c 11,910        
B’s capital A/c 7,940 19,850      
           
           
    3,51,200     3,51,200
Partners’ Capital Account 
Particulars X Y Particulars X Y
To Realisation A/c     By Balance b/d 85,000 63,000
LAND & BUILDING 43,500   By Realisation A/c 11,910 7,940
           
           
To Cash A/c 53,410 70,940      
  96,910 70,940   96,910 70,940
Cash A/c
Particulars Amount Particulars Amount
To balance b/d   3,650 By Realisation A/c    
To Realisation A/c     Creditors & expenses paid off   97,050
Assets realised   2,07,750 By A’s capital A/c   53,410
To BANK A/c   10,000 By B’s capital A/c   70,940
           
    2,21,400     2,21,400
Sundry Creditors A/c
Particulars Amount Particulars Amount
To Realisation A/c   97,500 By balance b/d   97,500
           
    97,500     97,500

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 28 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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