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

Question 36 Chapter 7 of +2-Part-1

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

• 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

Check out T.S. Grewal +2 Book 2020@ Official Website of Sultan Chand Publication