
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 |
Comment if you have any questions
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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