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

Q-45. - CH-7 - Usha +2 Book 2018 - Solution

Question 45 Chapter 7 of +2-Part-1

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

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