Question 43 Chapter 7 of +2-Part-1
43. (Realisation A/c/Cash A/c/Capital A/c’s) The partnership between Read and Write was dissolved on 31-3-2017. On that date the respective credits to the capitals were Read Rs. 1,70,000 and Write Rs. 30,000: Rs. 20,000 were owed by Write to the firm; Rs. 1,00,000 were owed by the firm to Read and Rs. 2,00,000 were due to trade creditors.
Profits and losses were shared in the proportions of 2/3 to Read and 1/3 to Write.
The assets represented by the above stated net liabilities realised Rs. 4,50,000 exclusive of Rs. 20,000 owed by Write. The liabilities were settled at book figures. Prepare realisation account, cash account and capital accounts.
The solution of Question 43 Chapter 7 of +2 Part-1: –
The book value of the assets is computed by preparing a balance sheet from given information
| Memorandum Balance sheet |
|||||
| Liabilities |
Amount | Asstes | Amount | ||
| Capital A/c | Write’s loan A/c | 20,000 | |||
| Read | 1,70,000 | ||||
| Write | 30,000 | ||||
| Read’s loan A/c | 1,00,000 | Sundry Assets (balancing figures ) | 4,80,000 | ||
| Sundry creditors | 2,00,000 | ||||
| 5,00,000 | 5,00,000 | ||||
| Realisation A/c |
|||||
| Particulars |
Amount | Particulars | Amount | ||
| To sundry Assets | 4,80,000 | By Sundry creditors A/c | 2,00,000 | ||
| To Cash A/c | By Cash A/c – assets realised | 4,50,000 | |||
| Payment to creditors | 2,00,000 | By loss on realisation | |||
| Read | 20,000 | ||||
| Write | 10,000 | 30,000 | |||
| 6,80,000 | 6,80,000 | ||||
| Cash A/c |
|||||
| Particulars |
Amount | Particulars | Amount | ||
| To Realisation A/c | By Realisation A/c | 2,00,000 | |||
| Assets realised | 4,50,000 | Payment to creditors | |||
| To Write’s loan A/c | 20,000 | By Read’s loan A/c | 1,00,000 | ||
| By Read’s capital A/c | 1,50,000 | ||||
| By Write’s capital A/c | 20,000 | ||||
| 4,70,000 | 4,70,000 | ||||
| Read’s capital accounts |
|||||
| Particulars |
Amount | Particulars | Amount | ||
| To Realisation A/c – loss | 20,000 | By Balance b/d | 1,70,000 | ||
| To Cash A/c | 1,50,000 | ||||
| 1,70,000 | 1,70,000 | ||||
| Write’s capital accounts |
|||||
| Particulars |
Amount | Particulars | Amount | ||
| To Realisation A/c –loss | 10,000 | By Balance b/d | 30,000 | ||
| To Cash A/c | 20,000 | ||||
| 30,000 | 30,000 | ||||
End of Solution
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Chapter-Wise Solution of Usha Publication Accountancy – Part 1 Class 12 – Session 2024-25 as per the PSEB curriculum
Check out Solutions to all questions of the every chapter shown as under. The Solution of Accountancy – Part 1 Class 12 – Session 2024-25 is provided as per the new book published by Usha Publication.
Chapter No. 1 – Accounting Not-for-Profit Organisations (Deleted from the Syllabus)
Chapter No. 2 – Partnership Accounts – I (Introduction)
Chapter No. 3 – Partnership Accounts – II (Goodwill: Nature and Valuation)
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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)
Also, Check out our Comprehensive Chapter-wise solution of Advanced Accountancy Part 1 Class 12 by Unimax Publication
- Chapter No. 1 – Accounts of Non-Profit Organisations (Deleted from the Syllabus)
- Chapter No. 2 – Partnership Accounts – I (Basic Concepts)
- Chapter No. 3 – Partnership Accounts – II (Goodwill)
- Chapter No. 4 – Partnership Accounts – III (Change in Profit Sharing Ratio among Existing Partners)
- 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)
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