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Question 32 Chapter 7 of +2 Part-1 – USHA Publication 12 Class Part – 1

Question 32 Chapter 7 of +2- Part
Q-32. - CH-7 - Usha +2 Book 2018 - Solution

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Question 32 Chapter 7 of +2-Part-1

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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
D50,000Stock 7,500
E20,000Investments 20,000
Creditors18,500Debtors                 9,300 
Investment fluctuations fund6,000Less provision       6008,700
  F’s current A/c11,500
  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 .

We are providing a solution of Question 32 Chapter 7 of +2 Part-1 in two formats. one is in Video format and another is in article format. Check out both formats as follows:

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The solution of Question 32 Chapter 7 of +2 Part-1: –

Revaluation A/c
Particulars
AmountParticularsAmount
To Debtors 9,300By provision for doubtful debts 600
To Stock A/c 7,500By Creditors 18,500
To investments 20,000By investment fluctuations fund 6,000
To Machinery 40,500By D’s capital A/c 18,000
To Cash Creditors 18,500By E’s capital A/c  
To D’s Remuneration 1,000Stock7,000 
To profit on realisation  Debtors4,50011,500
D‘s Capital A/c7,475 By cash  
E‘s capital A/c4,983 Machinery55,000 
F’s capital A/c2,49214,950Debtors (50% of 4,300)2,15057,150
  1,11,750  1,11,750
Partners’ Capital Account 
 
ParticularsDEFParticularsDEF
To Current A/c  11,500By Balance b/d50,00020,000 
To Realisation A/c – –   By realisation A/c   
Assets taken over18,00011,500 Realisation fee1,000  
To Cash (drawing for exp.)600  By realisation A/c   
    Realisation profit7,4754,9832,492
To Cash BF 39,875013,483 By Cash BF   9,008
 58,47524,98311,500 58,47524,98311,500
Cash A/c
ParticularsAmountParticularsAmount
To balance b/d 6,300By Realisation A/c creditor paid 18,500
To Realisation A/c  By D’s capital A/c Drawing for exp. 600
Assets realised 57,150By D’s capital A/c discharge 39,875
To F’s capital A/c 9,008By E’s capital A/c 13,483
  72,458  72,458

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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/cDr600 
To Cash A/c  600


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
Vol. I: Accounting for Not-for-Profit Organizations and Partnership Firm

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