Question 44 Chapter 7 of +2 Part-1 – USHA Publication 12 Class Part – 1

Question 44 Chapter 7 of +2- Part

Question 44 Chapter 7 of +2-Part-1

Free Accounting book Solution - Class 11 and Class 12

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

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 44 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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