Question 38 Chapter 7 of +2 Part-1 – USHA Publication 12 Class Part – 1

Question 38 Chapter 7 of +2- Part

Question 38 Chapter 7 of +2-Part-1

Free Accounting book Solution - Class 11 and Class 12

38. (Realisation A/c/Partners‘ Capital A/c/Cash A/e) Bhuvan, Suraj and Ibrahim were partners in a firm sharing profits in the ratio of 3: 2:1. On 30th June, 2015, they decided to dissolve the firm. Following was the Balance Sheet of the firm on that date :

Liabilities  Rs. Assets  Rs. 
Creditors  50,400 Cash at Bank  13,700
Investment fluctuation fund  10,000 Stock  20,100
Reserve Fund  12,000 Debtors 62,600
Capital A/c :   Investments  16,000
Bhuvan  30,000 Furniture  20,000
Suraj  20,000    
Ibrahim  10,000    
       
  1,32,400   1,32,400

The assets were realised and the liabilities were paid off as follows :

  1. Investments were taken over by Bhuvan for Rs. 18,000.
  2. Stock was taken over by Suraj for Rs. 17,500 and Furniture was taken over by Ibrahim at book value.
  3. Rs. 60,500 were realised from the debtors.
  4. Creditors were settled in full and realisation expenses were Rs. 4,500.
    Prepare Realisation Account, Cash Account and Partners’ Capital Accounts.

The solution of Question 38 Chapter 7 of +2 Part-1: –

Realisation A/c
Particulars
Amount Particulars Amount
To Debtors   62600 By creditors A/c   50,400
To Stock   20100 By investments fluctuation fund   10,000
To investment   16000 By Bhuvan’s capital A/c -investment   18,000
To furniture   20000 By Suraj’s capital A/c -Stock   17,500
To Cash A/c Creditors   50400 By Ibrahim’s capital A/c – Furniture   20,000
To Cash A/c Realisation Expenses   4500 By Cash A/c -Debtors   60,000
To profit on realisation          
Bhuvan’s capital A/c 1,400        
Suraj’s capital A/c 933        
Ibrahim’s capital A/c 467 2,800      
           
    1,76,400     1,76,400
Partners’ Capital Account 
Particulars Bhuvan Suraj Ibrahim
Particulars Bhuvan Suraj Ibrahim
To Realisation A/c 18,000 17,500 20,000 By Balance b/d 30,000 20,000 10,000
        By reserve 6,000 4,000 2,000
        By Realisation A/c   1,400 933
               
To Cash A/c 19,400 7,344   By Cash A/c      
  37,400 24,933 20,000   37,400 24,933 20,000
Bank A/c 
Particulars Amount Particulars Amount
To balance b/d   13,700 By realisation A/c Creditors   50,400
To Realisation A/c     By realisation A/c
Realisation Expenses
  4,500
Debtors   60,500 By Bhuvan’s capital A/c   19,400
To Ibrahim’s capital A/c   7,533 By Suraj’s capital A/c   7,433
           
           
           
    81,733     81,733

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 38 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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