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

Question 29 Chapter 7 of +2-Part-1

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

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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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