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Question 43 Chapter 7 of +2-Part-1
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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 | ||||
Write’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 |
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
Check out T.S. Grewal +2 Book 2020@ Official Website of Sultan Chand Publication
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