Question 41 Chapter 7 of +2 Part-1 – USHA Publication 12 Class Part – 1

Question 41 Chapter 7 of +2-Part-1

41. (Memorandum Balance Sheet/Ledger Ales) A and B were partners in a business sharing profits and losses in the ratio of 3 :1 respectively. They decided to dissolve their partnership on lit January 2015. On that date, the capital of A and B were Rs. 10,000 and Rs. 5,000 respectively, the amount owing by A to the firm was Rs. 3,200 and the amount owed by the firm to B was Rs. 4,000. The creditors amounted to Rs. 25,000 and cash Rs. 2,700. The remaining assets other than the amount owing by A to the firm realised Rs. 29,600. The expenses of realisation amounted to Rs. 1,500.
Prepare the balance sheet of A and B immediately prior to dissolution and necessary accounts to close the books of the firm.

The solution of Question 41 Chapter 7 of +2 Part-1: –

Balance Sheet
Liabilities		Amount	Assets		Amount
Sundry creditors		25,000	Cash A/c		2,700
B’s loan A/c		4,000	A’s loan A/c		3,200
To Capital A/c			Sundry Assets (balancing figures )		38,100
A		10,000
B		5,000
		44,000			44,000

Realisation A/c
Particulars		Amount	Particulars		Amount
To sundry Assets		38,100	By Sundry creditors A/c		25,000
To Cash A/c – Creditors		25,000	By Cash A/c – assets realised		29,600
To Cash A/c – Realisation Expenses		700	By loss on realisation
			A	7,500
			B	2,500	10,000
		64,600			64,600

Partners’ Capital Account
Particulars	A	B	Particulars	A	B
To Realisation A/c loss	7,500	2,500	By Balance b/d	10,000	5,000
To A’s loan	3,200
To Cash A/c
To Cash A/c	–	2,500	By Cash A/c	700
	10,700	5,000		10,700	5,000

Cash A/c
Particulars		Amount	Particulars		Amount
To balance b/d		2,700	By realisation A/c
To Realisation A/c			Payment to creditors		25,000
Loss		29,600	Realisation expenses		1,500
To A’s capital A/c		700	By B’s loan A/c		4,000
			By B’s capital A/c		2,500
		33,000			33,000

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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