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Question 45 Chapter 7 of +2-Part-1
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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
- Chapter No. 1 – Accounting Not for Profit Organisations
- 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)
- 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)
- Chapter No. 8 – Company Accounts (Share Capital)
- Chapter No. 9 – Company Accounts (Issue of Debentures)
- Chapter No. 10 – Company Accounts (Redemption of Debentures)
Usha Publication – Accountancy PSEB (Class 12) – Volume II – Solution
- Chapter No. 1 – Financial Statements of a Company
- Chapter No. 2 – Financial Statement Analysis
- Chapter No. 3 – Tools of Financial Statement Analysis- Comparative and Common Size
- Chapter No. 4 – Ratio Analysis
- Chapter No. 5 – Cash Flow Statement
Check out T.S. Grewal +2 Book 2020@ Official Website of Sultan Chand Publication
