Question 45 Chapter 7 of +2 Part-1 – USHA Publication 12 Class Part – 1

Question 45 Chapter 7 of +2- Part

Question 45 Chapter 7 of +2-Part-1

Free Accounting book Solution - Class 11 and Class 12

45. (Comprehensive) Amar, Akbar and Anthony commenced business on 1st April 2018, sharing profits and losses in the ratio of 2: 2:1. Capitals contributed were: Amar Rs. 40,000: Akbar Rs. 30,000 and Anthony RS. 20,000. The partners were entitled to interest on capital @6% p.a. During the year ended 31st March 2019, the firm earned a profit (before interest) of Rs. 25,000.
The partners had drawn Amar Rs. 10.000, Akbar Rs. 8,000 and Anthony Rs. 5,000
On 31st March, 2019 the firm was dissolved. The assets realised RS. 1,00,000. The creditors which totaled Rs. 15,000 were paid at a discount of 3%. There was a contingent liability of Rs. 500 on bills discounted which was also paid. Expenses of realisation amounted to Rs. 1,450. Prepare accounts to close the books of the firm.

The solution of Question 45 Chapter 7 of +2 Part-1: –

Profit & loss appropriation A/c
for ending of the year 31-3-2019

Particulars
Amount Particulars Amount
To interest on capital A/c     By profit b/d (before interest)   25,000
Amar (40,000 X 6/100) 2,400        
Akbar (30,000 X 6/100) 1,800        
Anthony (20,000 X 6/100) 1,200 5,400      
To profit transferred to          
To Amar’s capital A/c 2/5 7,840        
To Akbar’s capital A/c 2/5 7,840        
Anthony (20,000 X 6/100) 3,920 19,600      
    25,000     25,000
Partners’ Capital Account 
Particulars Amar Akbar Anthony
Particulars Amar Akbar Anthony
To Drawings A/c 10,000 8,000 5,000 By Balance b/d 40,000 30,000  
        By intt. On capital 2,400 1,800 1,200
        By P & L A/c (profit ) 7,840 7,840 3,920
To Balance c/d
40,240 31,640 20,120        
  50,240 39,640 25,120   50,240 39,640 25,120
Balance sheet
Liabilities Amount Asstes Amount
Capital A/c     Sundry Assets (balancing figures )   1,07,000
Amar   40,240      
Akbar   31,640      
Anthony   20,120      
Creditors   15,000      
           
           
    1,07,000     1,07,000
Realisation A/c
Particulars
Amount Particulars Amount
To sundry assets A/c   1,07,000 By Creditors   15,000
To cash A/c (liabilities & expenses paid     By cash    
Creditors   14,550 Assets realised   1,00,000
Contingent liability   500 By loss on realisation    
Expenses on Realisation   1,450 Amar 3,400  
      Akbar 3,400  
      Anthony 1,700 8,500
    1,23,500     1,23,500
Partners’ Capital Account 
Particulars Amar Akbar Anthony
Particulars Amar Akbar Anthony
To Realisation A/c Loss 3,400 3,400 1,700 By Balance b/d 40,240 31,640 20,120
To Balance c/d
36,840 28,240 18,420        
  40,240 31,640 20,120   40,240 31,640 20,120
Cash A/c 
Particulars Amount Particulars Amount
To Realisation A/c     By realisation A/c    
Assets realised   1,00,000 Creditors   14,550
      Contingent liability   500
      Expenses on Realisation   1,450
      By Amar’s capital A/c   36,840
      By Akbar ’s capital A/c   28,240
      By Akbar ’s capital A/c   18,420
    1,00,000     1,00,000

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 45 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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