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

Question 28 Chapter 7 of +2-Part-1

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

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Also, Check out the solved question of previous Chapters: –

Usha Publication – Accountancy PSEB (Class 12) – Volume I – Solution

• Chapter No. 1 – Accounting Not for Profit Organisations
• Chapter No. 2 – Partnership Accounts – I (Introduction)
• Chapter No. 3 – Partnership Accounts – II (Goodwill: Nature and Valuation)
• Chapter No. 4 – Partnership Accounts – III (Reconstitution of Partnership)
• Chapter No. 5 – Partnership Accounts – IV (Admission of A Partner)
• Chapter No. 6 – Partnership Accounts – V (Retirement and Death of A Partner)
• Chapter No. 7 – Partnership Accounts – VI (Dissolution of Partnership Firm)
• Chapter No. 8 – Company Accounts (Share Capital)
• Chapter No. 9 – Company Accounts (Issue of Debentures)
• Chapter No. 10 – Company Accounts (Redemption of Debentures)

Usha Publication – Accountancy PSEB (Class 12) – Volume II – Solution

• Chapter No. 1 – Financial Statements of a Company
• Chapter No. 2 – Financial Statement Analysis
• Chapter No. 3 –  Tools of Financial Statement Analysis- Comparative and Common Size
• Chapter No. 4 – Ratio Analysis
• Chapter No. 5 – Cash Flow Statement

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