Question 42 Chapter 7 of +2 Part-1 – USHA Publication 12 Class Part – 1

Question 42 Chapter 7 of +2- Part

Question 42 Chapter 7 of +2-Part-1

Free Accounting book Solution - Class 11 and Class 12

42. (Realisation A/c) Sachin and Tarun were partners sharing profits and losses as to 2/3 and 1/3 respectively. On 31st December 2015 they dissolved the partnership firm when their books showed the following ledger account balances:
Investments Rs. 9,500; Furniture Rs. 2,700; Goodwill Rs. 10,000; Bank overdraft Rs. 3,800; Closing stock Rs. 16,000; Sundry debtors Rs. 10,300; Trade creditors Rs. 14,700. Sachin’s capital Rs. 20,000: Tarun’s capital Rs. 10,000.
Sachin agreed to bear all realisation expenses. For this service he was to be paid Rs. 500. The firm could realise only Rs. 9,400 of sundry debtors and 75% of the book value of the stock. Furniture was sold for 1,600 but nothing could be realised for goodwill account. Sachin took over investments for Rs. 11,000.You are required to prepare realisation account.

The solution of Question 42 Chapter 7 of +2 Part-1: –

Realisation A/c
Particulars
Amount Particulars Amount
To investments   9,500 By Bank overdraft   3,800
To furniture   2,700 By Trade Creditors   14,700
To goodwill   10,000 By Bank A/c    
To Stock   16,000 Sundry Debtors 9,400  
To Sundry Debtors   10,300 Stock 12,000  
To Bank A/c     Furniture 1,600 23,000
Bank overdraft 3,800   By Sachin’s capital A/c   11,000
Trade Creditors 14,700 18,500 By loss transferred to    
To Sachin’s capital A/c     Sachin 10,000  
Realisation Expenses   500 Tarun 5,000 15,000
    67,500     67,500

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 42 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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