Question 30 Chapter 7 of +2 Part-1 – USHA Publication 12 Class Part – 1

Question 30 Chapter 7 of +2- Part

Question 30 Chapter 7 of +2-Part-1

Free Accounting book Solution - Class 11 and Class 12

30. (Realisation A/c/Capital A/e’s/Bank A/e) The Balance sheet of A, B and C sharing profits and losses as 3:2 :1 respectively stood as follows on June 30, 2019.

Liabilities  Rs. Assets  Rs. 
Creditors  50,400 Cash at Bank  3,700
Joint life policy reserve A/c  10,000 Stock  20,100
Reserve Fund  12,000 Debtors 62,600
Capital A/c :   INVESTMENTS  16,000
A 30,000 Furniture  6,500
B 20,000 Buildings  23,500
  1,32,400   1,32,400

The firm was dissolved on that date. For the purpose of dissolution, the investment were valued at Rs.18,000 and stock at Rs. 17.500: A agreed to take over investment and B to take over stock, C took over furniture at book value. Debtors and buildings realised Rs. 57,000 and Rs. 25,000 respectively. Expenses of realisation amounted to Rs. 450.
In addition one bill for Rs. 500 under discount was dishonored and had to be taken up by the firm.
Prepare necessary ledger accounts to close the books of the firm

The solution of Question 30 Chapter 7 of +2 Part-1: –

Realisation A/c
Particulars
Amount Particulars Amount
To Debtors A/c   62,600 By Debtors A/c   50,400
To Stock A/c   20,100 By Joint life policy reserve   10,000
To investments   16,000 By A’s capital A/c   18,000
To furniture   6,500 By B’s capital A/c   17,500
To building   23,500 By C’s capital A/c   6,500
To bank A/c (liabilities & exp. paid )     By bank A/c ( assets realised )    
Creditors   50,400 Debtors   57,000
Realisation Expenses   450 Building   25,000
Bill dishonored   500      
To profit on realisation          
A   2,175      
B   1,450      
C   725      
    1,84,400     1,84,400
Partners’ Capital Account 
Particulars A B C Particulars A B C
To Realisation A/c       By Balance b/d 30,000 20,000 10,000
Assets taken over 18,000 17,500 6,500 By reserve fund 6,000 4,000 2,000
        By realisation A/c Profit on realisation 2,175 1,450 725
               
To Cash A/c 20,175 7,950 6,225        
  38,175 25,450 12,725   38,175 25,450 12,725
Bank A/c
Particulars Amount Particulars Amount
To balance b/d   3,700 By Realisation A/c    
To Realisation A/c     Liabilities & exp. Paid   51,350
Assets realised   82,000 By A’s capital A/c   20,175
      By B’s capital A/c   7,950
      By C’s capital A/c   6,225
           
           
           
    85,700     85,700


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 30 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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