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

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-

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

• 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

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