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: –