Question 44 Chapter 7 of +2-Part-1
44. (Realisation A/c/Capital & Current A/c/Cash A/e) X, Y and Z are in partnership sharing profits and losses equally. Their balance Sheet as at 31 March 2017 was as follows:
| Liabilities | Rs. | Assets | Rs. |
| Creditors | 13,000 | Cash | 1,500 |
| Y’s loan A/c | 2,500 | Debtors | 12,500 |
| Bills payable | 500 | Stock | 29,000 |
| Reserve fund | 3,000 | Machinery | 5,000 |
| X’s current A/c | 1,500 | Z’s current A/c | 3,000 |
| Y’s current A/c | 1,500 | Goodwill | 10,000 |
| X’s Capital A/c : | 20,000 | Furniture | 1,000 |
| Y’s Capital A/c : | 10,000 | ||
| Z’s Capital A/c : | 10,000 | ||
| 62,000 | 62,000 |
On the date they dissolved their partnership and the following arrangement was made among the partners:
(a) X agrees to pay creditors
(b) Y takes over the stock at an agreed valuation of Rs. 25,000
(c) Z takes over Goodwill at Rs. 15,000.
(d) Bills Payable were cleared off, Rs. 10 being allowed for discount.
(e) The remaining assets were auctioned and realised Rs. 15,000. Expenses of realisation amounted to Rs.120.
(f)Y’s loan was also paid off.
Required. Prepare Realisation Account, Cash Account, Current Accounts, Partner’s Capital Account
The solution of Question 44 Chapter 7 of +2 Part-1: –
| Realisation A/c |
|||||
| Particulars |
Amount | Particulars | Amount | ||
| To Debtors | 12,500 | By Creditors | 13,000 | ||
| To Stock | 29,000 | By Bills payable | 500 | ||
| To Goodwill | 10,000 | By Z’s capital A/c | |||
| To Machinery | 5,000 | Goodwill taken over | 15,000 | ||
| To Furniture | 1,000 | By Y’s capital A/c | |||
| To X‘s Capital A/c | Stock taken over | 25,000 | |||
| Creditors assumed | 13,000 | By cash | |||
| To cash A/c | Assets realised | 15,000 | |||
| Bills payable | 490 | By loss on realisation | |||
| Realisation expenses | 120 | 690 | X’s capital A/c 1/3 | 870 | |
| Y’s capital A/c 1/3 | 870 | ||||
| Z’s capital A/c 1/3 | 870 | 2,610 | |||
| 71,110 | 71,110 | ||||
| Partners’ Capital Account |
|||||||
| Particulars | X | Y | Z |
Particulars | X | Y | Z |
| To Current A/c | 3,000 | By Balance b/d | 20,000 | 10,000 | 10,000 | ||
| To Realisation A/c | By current A/c | 1,500 | 1,500 | – | |||
| Assets taken over | 25,000 | 15,000 | By X’s capital A/c | ||||
| To Realisation A/c Loss | 870 | 870 | 870 | Creditors assumed | 13,000 | ||
| By reserve fund | 1,000 | 1,000 | 1,000 | ||||
| To Cash A/c | 34,630 | – | – | By Cash A/c | 13,370 | 7,870 | |
| 35,500 | 25,870 | 18,870 | 35,500 | 25,870 | 18,870 | ||
| Cash A/c |
|||||
| Particulars | Amount | Particulars | Amount | ||
| To balance b/d | 1,500 | By realisation A/c | |||
| To Realisation A/c | B/P & Expenses paid off | 610 | |||
| Assets realised | 15,000 | By Y’s capital A/c | 2,500 | ||
| To Y’s capital A/c | 13,370 | By X’s capital A/c | 34,630 | ||
| To Z’s capital A/c | 7,870 | ||||
| 15,700 | |||||
| 37,740 | 37,740 | ||||
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)
Chapter No. 4 – Partnership Accounts – III (Reconstitution of Partnership)
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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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1. Accountancy – Part 2 Class 12 – Session 2024-25 By Usha Publication
2. Advanced Accountancy Part 2 Class 12 by Unimax Publication