Question 35 Chapter 7 of +2 Part-1 – USHA Publication 12 Class Part – 1

Question 35 Chapter 7 of +2- Part

Question 35 Chapter 7 of +2-Part-1

Free Accounting book Solution - Class 11 and Class 12

35. (Realisation A/c/Cash A/c/Partner’s Capital A/e) A, B and were equal firm. On 31st March 2019 their balance sheet stood as follows

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

For the purpose of dissolution, investments were valued at RS. 18,000 and A took over the investments at this value. Fixed assets realised Rs. 29,700 whereas stock and debtors realize Rs. 80,000. Expenses of realisation amounted to Rs. 1,300. Creditors allowed a discount of Rs. 800. In addition one bill receivable for RS. 1,500 under discount was dishonoured as the acceptor had become insolvent and was unable to pay anything and hence the bill had to be met the by firm.
Prepare realisation account, cash book and partners capital accounts showing how accounts would finally be settled among the partners.

The solution of Question 35 Chapter 7 of +2 Part-1: –

Revaluation A/c
Particulars
Amount Particulars Amount
To Debtors   62,600 By Creditors A/c   50,400
To Stock A/c   20,100 By A’s capital A/c Investment   18,000
To investments   16,000 By bank A/c ( assets realised )    
To furniture   6,500 Debtors & Stock 80,000  
To building   23,500 Fixed asset 29,700 1,09,700
To bank A/c (liabilities & exp. paid )          
Creditors   49,600      
Expenses   1,300      
Bill dishonored   1,500 By loss on realisation    
      A 1,000  
      B 1,000  
      C 1,000 3,000
    1,81,100     1,81,100
Bank A/c
Particulars Amount Particulars Amount
To balance b/d   3,700 By Realisation A/c    
To Realisation A/c     Payment to creditors   49,600
Debtors   80,000 Expense   1,300
Stock   29,700 Bill dishonored   1,500
      By A’s capital A/c   15,000
      By B’s capital A/c   28,000
      By C’s capital A/c   18,000
    1,13,400     1,13,400
A’s capital A/c
Particulars Amount Particulars Amount
To Realisation A/c     By Balance b/d   30,000
 -investment   18,000 By reserve fund   4,000
To Realisation A/c loss   1,000      
To Bank A/c   15,000      
    34,000     34,000
B’s capital A/c
Particulars Amount Particulars Amount
To Realisation A/c   1,000 By Balance b/d   25,000
      By reserve fund   4,000
           
To Bank A/c   28,000      
    29,000     29,000
C’s capital A/c
Particulars Amount Particulars Amount
To Realisation A/c   1,000 By Balance b/d   15,000
      By reserve fund   4,000
           
To Bank A/c   18,000      
    19,000     19,000


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 35 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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