Question 29 Chapter 7 of +2 Part-1 – USHA Publication 12 Class Part – 1

Question 29 Chapter 7 of +2- Part

Question 29 Chapter 7 of +2-Part-1

Free Accounting book Solution - Class 11 and Class 12

29. (Realisation A/c/Capital A/c/Bank Ne/Provision for Doubtful Debts/GST Arjun and Bhim are partners in a firm. They share profits and losses in 5:3 ratio. They dissolved their business on 31 March, 2013

Liabilities  Rs. Assets  Rs. 
Creditors  25,000 Cash at Bank  43,000
Advance from customers  5,000 Debtors               36,000  
Stock Reserve  2,000 Less provision      1,000 35,000
Satish’s loan A/c  12,000 Stock  22,000
Reserve Fund  64,000 Prepaid expenses  3,000
Capital A/c :   Investments (in share of 100 each ) 28,000
Arjun  80,000 Furniture  30,000
Bhim  53,000 Machinery  80,000
  2,41,000   2,41,000

50% of the creditors were paid at 10% discount and the remaining were paid at book value. Advance from customer was refunded in full settlement after deducting Rs. 110 Debtors Rs. 4,000 proved bad and Rs. 20.000 were good which realised 100% and the remaining were doubtful which realised 50% only. Investments realized at 80% Furniture was depreciated by Rs. 3,000 and it realised Rs. 25,000 only Machinery was sold at book value and IGST levied @ 18% and were deposited with Government Department. No recovery from prepaid expenses and stock.
Expenses on realisation amounted Rs. 1,200. Pass journal entries. Prepare Realisation Account, Capital Accounts and Bank Account.

The solution of Question 29 Chapter 7 of +2 Part-1: –

Realisation A/c
Particulars
Amount Particulars Amount
To Debtors A/c   36,000 By Creditors A/c   25,000
To Stock A/c   22,000 By Provision for debts A/c –   1,000
To prepaid expenses   3,000 By advance from customers   5,000
To investments   28,000 By Stock reserve   2,000
To furniture   30,000 By Satish loan   12,000
To machinery   80,000 By cash A/c (debtors )   26,000
To cash Creditors   23,750 By cash A/c    
To cash advance   4,860 Investment   22,400
To cash Expenses   1,200 Furniture   25,000
To cash Satish’s loan   12,000 Machinery   80,000
      By loss transferred to    
      Arjun 5/8   26,506
      Bhim 3/8   15,904
    2,40,810     2,40,810
Partners’ Capital Account 
Particulars Arjun Bhim Particulars Arjun Bhim
To Realisation A/c 26,506 11,904 By Balance b/d 80,000 53,000
      By reserve fund 40,000 24,000
           
           
To Cash A/c 93,394 61,094      
  1,20,000 77,000   1,20,000 77,000
Cash A/c
Particulars Amount Particulars Amount
To balance b/d   43,000 By Realisation A/c   23,750
To Realisation A/c   26,000 By Realisation A/c   4,860
To Realisation A/c
(22,400+25,000+80,000)
  1,27,400 By Realisation A/c    1,200
To Output IGST   14,400 By Realisation A/c   12,000
      By Arjun’s capital A/c   93,494
      By Bhim’s capital A/c   61,096
      To Output IGST   14,400
           
    2,10,800     2,10,800

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 29 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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