Question 36 Chapter 7 of +2 Part-1 – USHA Publication 12 Class Part – 1

Question 36 Chapter 7 of +2- Part

Question 36 Chapter 7 of +2-Part-1

Free Accounting book Solution - Class 11 and Class 12

36. (Realisation A/c/Bank A/c/Partner’s Capital A/e) The following Arvind and Balbir as on 31st December, 2015.

Liabilities  Rs. Assets  Rs. 
Trade Creditors  45,000 Cash 50
Bills payable  12,000 Bank  12,000
Mrs. Arvind loan  7,500 Stock  7,500
Mrs. Balbir loan  15,000 Investments  15,000
Reserve Fund  15,000 Book-debts                30,000  
Investment fluctuation fund 1,500 Less: reserve             3,000 27,000
Capital A/c :   Buildings  22,500
Arvind  15,000 Plant  30,000
Balbir 15,000 Goodwill 6,000
    Profit & Loss A/c 5,250
  1,26,000   1,26,000

The firm was dissolved on the above date under the following arrangements
(i) Arvind promised to pay off Mrs. Arvind’s loan and took away stock at Rs. 6,000.
(ii) Balbir took away half the investment at 10% discount
(iii) Book debts realised Rs.28,500
(iv) Trade creditors and bills payable were due on an average basis one month after 31st December, but were paid immediately on 31st December at 6% discount
(v) Plant realised Rs. 37,500 ;Building Rs. 60,000; Goodwill Rs. 9,000 and remaining investment at Rs. 6,750
(vi) An old typewriter written off completely from the firm books now estimated to realize Rs. 450. It was taken away by Balbir at this estimated price.
(vii) Realisation expenses were Rs. 1,500.
Show the realisation account, bank account and capital accounts of partners

The solution of Question 36 Chapter 7 of +2 Part-1: –

Realisation A/c
Particulars
Amount Particulars Amount
To Stock   7,500 By Provision for doubtful debts   3,000
To investments   15,000 By Trade creditors   45,000
To Book Debts   30,000 By Bills payable   12,000
To building   22,500 By Mrs. Arvind loan   7,500
To plant   30,000 By Mrs. Balbir loan   15,000
To goodwill   6,000 By Investment fluctuation fund   1,500
To Arvind’s capital A/c     By Arvind’s capital A/c Stock   6,000
Mrs.. Arvind loan   7,500 By Balbir’s capital A/c 6,750  
To bank A/c (liabilities & exp. paid )     Investments 450 7,200
Creditors & Bills payable   56,715 Typewriters    
Realisation Expenses   1,500 By bank A/c    
Mrs. Balbir loan   15,000 Book Debts 28,500  
To profit on realisation     Plant 37,500  
Arvind 23,617.50   Building 60,000  
Balbir 23,617.50 47,235 Goodwill 9,000  
      Investments 6,750 1,41,750
    2,38,950     2,38,950
Bank A/c
Particulars Amount Particulars Amount
To balance b/d   12,750 By Realisation A/c    
To Realisation A/c     Creditors & Bills payable   56,715
Book debts 28,500   Realisation Expenses   1,500
Plant 37,500   Mrs. Balbir loan   15,000
Building 60,000   By Arvind’s capital A/c   44,992.50
Goodwill 9,000   By Balbir’s capital A/c   44,992.50
Investments 6,750 1,41,750      
    1,54,500     1,54,500
Arvind’s capital A/c
Particulars Amount Particulars Amount
To profit & Loss A/c   2,652 By Balance b/d   15,000
To Realisation A/c Stock   6,000 By reserve fund    
      By Realisation A/c   7,500
To Bank A/c   44,992.50 Mrs. Arvind loan   7,500
      Realisation profit   23,617.50
    53,617.50     53,617.50
Balbir’s capital A/c
Particulars Amount Particulars Amount
To profit & Loss A/c   2,652 By Balance b/d   15,000
To Realisation A/c     By reserve fund   7,500
Investments 6,750   By Realisation A/c Profit   23,617.50
Typewriters 450 7,200      
To Bank A/c   36,292.50      
    46,117.50     46,117.50


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 36 Chapter 7 of +2 Part-1 - USHA Publication 12 Class Part - 1
Vol. I: Accounting for Not-for-Profit Organizations and Partnership Firm

Leave a Reply

Your email address will not be published. Required fields are marked *