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

Question 43 Chapter 7 of +2- Part

Question 43 Chapter 7 of +2-Part-1

Free Accounting book Solution - Class 11 and Class 12

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

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 43 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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