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Question 43 Chapter 7 of +2 Part-1 – USHA Publication 12 Class Part – 1

Question 43 Chapter 7 of +2- Part
Q-43. - CH-7 - Usha +2 Book 2018 - Solution

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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
AmountAsstesAmount
Capital A/c  Write’s loan A/c 20,000
Read 1,70,000   
Write 30,000   
Write’s loan A/c 1,00,000Sundry Assets (balancing figures ) 4,80,000
Sundry creditors 2,00,000   
  5,00,000  5,00,000
Realisation A/c
Particulars
AmountParticularsAmount
To sundry Assets 4,80,000By Sundry creditors A/c 2,00,000
To Cash A/c  By Cash A/c – assets realised 4,50,000
Payment to creditors 2,00,000By loss on realisation  
   Read20,000 
   Write10,00030,000
  6,80,000  6,80,000
Cash A/c
Particulars
AmountParticularsAmount
To Realisation A/c  By Realisation A/c 2,00,000
Assets realised 4,50,000Payment to creditors  
To Write’s loan A/c 20,000By 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
AmountParticularsAmount
To Realisation A/c – loss 20,000By Balance b/d 1,70,000
To Cash A/c 1,50,000   
  1,70,000  1,70,000
Write’s capital accounts
Particulars
AmountParticularsAmount
To Realisation A/c –loss 10,000By 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

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
Vol. I: Accounting for Not-for-Profit Organizations and Partnership Firm

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