Question 37 Chapter 7 of +2-Part-1
37. (Goodwill does not appear in Books/Realisation Ac/Bank A/e/Partner’s Capital A/c) Mrs. Ritu Chaudhary and Miss Shobha are partners in a firm ‘Fancy Garments Exports’ sharing profits and losses equally on 1st January 2016, the Balance sheet of the firm was as follows
| Liabilities | Rs. | Assets | Rs. |
| Sundry Creditors | 75,000 | Cash | 6,000 |
| Bills payable | 30,000 | Bank | 30,000 |
| Mr. Chaudhary’s loan | 15,000 | Stock | 75,000 |
| Reserve Fund | 24,000 | Book-debts 66,000 | |
| Mrs. Ritu Chaudhary’s Capital A/c : | 90,000 | Less: reserve 6,000 | 60,000 |
| Miss Shobha’s Capital A/c | 30,000 | Plant & Machinery | 45,000 |
| Land & Building | 48,000 | ||
| 2,64,000 | 2,64,000 |
The firm was dissolved on that date. The following transactions took place-
- Mrs. Ritu Chaudhary undertook to pay Mr. Chaudhary’s loan and took over 50 per cent of the stock at a discount of 20 per cent .
- Book debts realised Rs. 54,000; balance of the stock was sold off at a profit of 30 per cent on cost.
- Sundry creditors were paid out at a discount of 10 per cent. Bills payable were paid in full.
- Plant and machinery realised Rs. 75,000, Land & building Rs. 1,20,000.
- Mrs. Ritu Chaudhary took over the Goodwill of the firm at a valuation of Rs. 30,000.
- Realisation expenses were Rs. 5,250.
Show the realisation account, bank account and partner’s capital accounts in the books of the firm .
The solution of Question 37 Chapter 7 of +2 Part-1: –
| Realisation A/c |
|||||
| Particulars |
Amount | Particulars | Amount | ||
| To Stock | 75,000 | By Provision for doubtful debts | 6,000 | ||
| To Book Debts | 66,000 | By Sundry creditors | 75,000 | ||
| To land & building | 45,000 | By Bills payable | 30,000 | ||
| To plant & machinery | 48,000 | By Mr. Chaudhary’s loan | 15,000 | ||
| To Mrs. Ritu Chaudhary’s capital A/c | By Mrs. Ritu Chaudhary’s capital A/c | ||||
| Mr. Chaudhary loan | 15,000 | Stock | 30,000 | ||
| To bank A/c | Goodwill | 30,000 | 60,000 | ||
| Payment to Creditors | 67,500 | By bank A/c | |||
| Realisation Expenses | 30,000 | Book Debts | 54,000 | ||
| Bills payable | 5,250 | Stock | 48,750 | ||
| Plant & machinery | 75,000 | ||||
| Land & Building | 1,20,000 | 2,97,750 | |||
| To profit on realisation | |||||
| Ritu Chaudhary | 66,000 | ||||
| Shobha | 66,000 | 1,32,000 | |||
| 4,83,750 | 4,83,750 | ||||
| Bank A/c (including Cash ) |
|||||
| Particulars | Amount | Particulars | Amount | ||
| To balance b/d | 36,000 | By Realisation A/c | |||
| To Realisation A/c | Payment to Creditors | 67,500 | |||
| Book debts | 54,000 | Realisation Expenses | 30,000 | ||
| Stock | 48,750 | Bills payable | 5,250 | ||
| Plant & machinery | 75,000 | By Mrs. Ritu Chaudhary’s capital A/c | 1,23,000 | ||
| Land & Building | 1,20,000 | 2,97,750 | By Shobha’s capital A/c | 1,08,000 | |
| 3,33,750 | 3,33,750 | ||||
| Ritu Chaudhary’s capital A/c |
|||||
| Particulars | Amount | Particulars | Amount | ||
| To Realisation A/c | By Balance b/d | 90,000 | |||
| Stock | 30,000 | By reserve fund | 12,000 | ||
| Goodwill | 30,000 | By Realisation A/c | |||
| To Bank A/c | 1,23,000 | Chaudhary loan | 15,000 | ||
| Realisation profit | 66,000 | ||||
| 1,83,000 | 1,83,000 | ||||
| Shobha’s capital A/c |
|||||
| Particulars | Amount | Particulars | Amount | ||
| By Balance b/d | 30,000 | ||||
| By reserve fund | 12,000 | ||||
| By Realisation A/c Profit | 66,000 | ||||
| To Bank A/c | 1,08,000 | ||||
| 1,08,000 | 1,08,000 | ||||
End of Solution
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Chapter-Wise Solution of Usha Publication Accountancy – Part 1 Class 12 – Session 2024-25 as per the PSEB curriculum
Check out Solutions to all questions of the every chapter shown as under. The Solution of Accountancy – Part 1 Class 12 – Session 2024-25 is provided as per the new book published by Usha Publication.
Chapter No. 1 – Accounting Not-for-Profit Organisations (Deleted from the Syllabus)
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)
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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)
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- Chapter No. 1 – Accounts of Non-Profit Organisations (Deleted from the Syllabus)
- Chapter No. 2 – Partnership Accounts – I (Basic Concepts)
- Chapter No. 3 – Partnership Accounts – II (Goodwill)
- Chapter No. 4 – Partnership Accounts – III (Change in Profit Sharing Ratio among Existing Partners)
- 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)
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