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

Question 38 Chapter 7 of +2-Part-1

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

• 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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