Question 32 Chapter 7 of +2-Part-1
32. (Realisation A/c/Partner’s Capital A/c/Cash A/e) D, E and F sharing profits in th proportion of 3 :2: 1 agree upon dissolution of the firm, D was appointed to realize the assets and pay off the liabilities for which he was entitled to a lump sum amount of Rs. 1,000 The Balance sheet of the firm on 31st March, 2019 was as follows-
| Liabilities | Rs. | Assets | Rs. |
| Capital A/c : | Machinery | 40,500 | |
| D | 50,000 | Stock | 7,500 |
| E | 20,000 | Investments | 20,000 |
| Creditors | 18,500 | Debtors 9,300 | |
| Investment fluctuations fund | 6,000 | Less provision 600 | 8,700 |
| F’s current A/c | 11,500 | ||
| Cash | 6,300 | ||
| 94,500 | 94,500 |
The investments are taken over by D for Rs. 18,000. E takes over all the stock at Rs. 7,000 and debtors amounting to Rs. 5,000 at Rs. 4,500. Machinery is sold for Rs. 55,000. The remaining debtors realize 50% of the book value D is to be allowed Rs. 1,000 for realizing the asset and payment of liabilities. The actual expenses of realisation amounted to Rs. 600.
Show the necessary ledger accounts on the completion of dissolution of the firm .
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The solution of Question 32 Chapter 7 of +2 Part-1: –
| Realisation A/c |
|||||
| Particulars |
Amount | Particulars | Amount | ||
| To Debtors | 9,300 | By provision for doubtful debts | 600 | ||
| To Stock A/c | 7,500 | By Creditors | 18,500 | ||
| To investments | 20,000 | By investment fluctuations fund | 6,000 | ||
| To Machinery | 40,500 | By D’s capital A/c | 18,000 | ||
| To Cash Creditors | 18,500 | By E’s capital A/c | |||
| To D’s Capital A/c | 1,000 | Stock | 7,000 | ||
| To profit on realisation | Debtors | 4,500 | 11,500 | ||
| D‘s Capital A/c | 7,475 | By cash | |||
| E‘s capital A/c | 4,983 | Machinery | 55,000 | ||
| F’s capital A/c | 2,492 | 14,950 | Debtors (50% of 4,300) | 2,150 | 57,150 |
| 1,11,750 | 1,11,750 | ||||
| Partners’ Capital Account |
|||||||
| Particulars | D | E | F | Particulars | D | E | F |
| To Current A/c | 11,500 | By Balance b/d | 50,000 | 20,000 | |||
| To Realisation A/c – – | By realisation A/c | ||||||
| Assets taken over | 18,000 | 11,500 | Realisation fee | 1,000 | |||
| To Cash (drawing for exp.) | 600 | By realisation A/c | |||||
| Realisation profit | 7,475 | 4,983 | 2,492 | ||||
| To Cash BF | 39,875 | 13,483 | By Cash BF | 9,008 | |||
| 58,475 | 24,983 | 11,500 | 58,475 | 24,983 | 11,500 | ||
| Cash A/c |
|||||
| Particulars | Amount | Particulars | Amount | ||
| To balance b/d | 6,300 | By Realisation A/c creditor paid | 18,500 | ||
| To Realisation A/c | By D’s capital A/c Drawing for exp. | 600 | |||
| Assets realised | 57,150 | By D’s capital A/c | 39,875 | ||
| To F’s capital A/c | 9,008 | By E’s capital A/c | 13,483 | ||
| 72,458 | 72,458 | ||||
Note : expenses of realised are to be born by D , but firm incurred realization expenses ; i.e. , on behalf of D hence for that firm will pass additional entry
| D’s capital A/c | Dr | 600 | |
| To Cash A/c | 600 |
End of Solution
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Chapter-Wise Solution of Usha Publication Accountancy – Part 1 Class 12 – Session 2024-25 as per the PSEB curriculum
Check out Solutions to all questions of the every chapter shown as under. The Solution of Accountancy – Part 1 Class 12 – Session 2024-25 is provided as per the new book published by Usha Publication.
Chapter No. 1 – Accounting Not-for-Profit Organisations (Deleted from the Syllabus)
Chapter No. 2 – Partnership Accounts – I (Introduction)
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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)
Also, Check out our Comprehensive Chapter-wise solution of Advanced Accountancy Part 1 Class 12 by Unimax Publication
- Chapter No. 1 – Accounts of Non-Profit Organisations (Deleted from the Syllabus)
- Chapter No. 2 – Partnership Accounts – I (Basic Concepts)
- Chapter No. 3 – Partnership Accounts – II (Goodwill)
- Chapter No. 4 – Partnership Accounts – III (Change in Profit Sharing Ratio among Existing Partners)
- 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)
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