Question 37 Chapter 7 of +2 Part-1 – USHA Publication 12 Class Part – 1

Question 37 Chapter 7 of +2- Part

Question 37 Chapter 7 of +2-Part-1

Free Accounting book Solution - Class 11 and Class 12

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-

  1. 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 .
  2. Book debts realised Rs. 54,000; balance of the stock was sold off at a profit of 30 per cent on cost.
  3. Sundry creditors were paid out at a discount of 10 per cent. Bills payable were paid in full.
  4. Plant and machinery realised Rs. 75,000, Land & building Rs. 1,20,000.
  5. Mrs. Ritu Chaudhary took over the Goodwill of the firm at a valuation of Rs. 30,000.
  6. 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


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

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