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

Question 35 Chapter 7 of +2-Part-1

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

• 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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