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

Question 42 Chapter 7 of +2-Part-1

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

• 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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