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Chopra, Shah and Patel Were Partners Sharing Profits in the Ratio of 3:2:1. on 31.3.2014 Their Firm Was Dissolved. the Assets Were Realized and Liabilities Were Paid Off. the Accountant Prepared Realisation Account, Partner'S Capital Accounts and Cash Account but Forgot to Post Few Amounts in These Accounts. - CBSE (Arts) Class 12 - Accountancy

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Question

Chopra, Shah and Patel were partners sharing profits in the ratio of 3:2:1. On 31.3.2014 their firm was dissolved. The assets were realized and liabilities were paid off. The accountant prepared Realisation Account, Partner's Capital Accounts and Cash Account but forgot to post few amounts in these accounts.

You are required to complete the below give accounts by posting correct amounts

Realisation Account
Dr.   Cr.
Particulars

Amount

Rs

Particulars

Amount

Rs

To Plant and Machinery 1,60,000 By Sundry Creditors 1,50,000
To Stock 1,50,000 By Mrs. Chopra Loan 1,30,000
To Sundry Debtors 2,00,000 By Repairs and Renewals Reserve 12,000
To Prepaid Insurance 4,000 By Provision for Bad debts 10,000
To Investment 30,000 By Cash A/c – (Assets sold)  
To Chopra’s Capital A/c
(Mrs. Chopra’s Loan)
1,30,000 Plant       1,20,000  
To Cash A/c (Dishonored Bill) 50,000 Stock      1,20,000  
To Cash (Creditors) 1,50,000 Debtors   1,60,000 3,80,000
To Cash (Expenses) 8,000 By Chopra’s Capital A/c
(Investment)
20,000
    ----------------- -------
  8,82,000   8,82,000

 

Capital Account
Dr.   Cr.
Particulars

Chopra

Rs

Shah

Rs

Patel

Rs

Particulars

Chopra

Rs

Shah

Rs

Patel

Rs

To Realisation 20,000 ----- ------ By bal b/d      
-------- -------- -------- -------- By Realisation
(Loan)
1,30,000    
-------- -------- -------- -------- ------------- -------- -------- --------
  2,30,000 1,50,000 30,000   2,30,000 1,50,000 30,000

 

Cash Account
Dr.   Cr.
Particulars

Amount

Rs

Particulars

Amount

Rs

--------------- -------- By Realisation A/c (Dishonored
Bill)
50,000
--------------- -------- By Realisation (Sundry  Creditors) 1,50,000
To Patel’s Capital A/c 10,000 --------------- --------
    By Chopra’s Capital A/c 1,20,000
    By Shah’s Capital A/c 90,000
  4,18,000   4,18,000

Solution

Realisation Account
Dr.   Cr.
Particulars Rs Particulars Rs
To Plant &Machinery A/c 1,60,000 By Sundry Creditors A/c 1,50,000
To Stock A/c 1,50,000 By Mrs. Chopra’s Loan A/c 1,30,000
To Sundry Debtors A/c 2,00,000

By Repairs and Renewals Reserve A/c

12,000
To Prepaid Insurance A/c 4,000 By Provision for Bad debts A/c 10,000
To Investment A/c 30,000 By Cash A/c (assets sold)  
To Chopra’s Capital A/c (Mrs. Chopra ‘s Loan) 1,30,000      Plant         1,00,000  
To Cash A/c (Dishonored Bill)  50,000      Stock        1,20,000  
To Cash A/c (Creditors) 1,50,000    Debtors      1,60,000 3,80,000
To Cash A/c (Expenses) 8,000    
    By Chopra’s Capital A/c (Investment) 20,000
    By Loss transferred to  
        Chopra’s Capital A/c  90,000  
        Shah’s Capital A/c     60,000  
        Patel’s Capital A/c      30,000 1,80,000
  8,82,000   8,82,000
       

 

Partner’s Capital Account
Dr.   Cr.
Particulars Chopra Shah Patel Particulars Chopra Shah Patel
To Realisation A/c
(Investments)
20,000     By Balance b/d 1,00,000 1,50,000 20,000
To Realisation A/c
(Loss)
90,000 60,000 30,000 By Realisation A/c (Loan) 1,30,000    
To Cash A/c 1,20,000 90,000   By Cash A/c     10,000
  2,30,000 1,50,000 30,000   2,30,000 1,50,000 30,000

 

Cash Account
Dr.   Cr.
Particulars Rs Particulars Rs
To Balance b/d 28,000 By Realisation A/c (Dishonored Bill) 50,000
To Realisation A/c (Assets sold) 3,80,000 By Realisation A/c (Sundry
Creditors)
1,50,000
To Patel’s Capital A/c 10,000 By Realisation A/c (Expenses) 8,000
    By Chopra’s Capital A/c 1,20,000
    By Shah’s Capital A/c 90,000
  4,18,000   4,18,000
  Is there an error in this question or solution?
Solution Chopra, Shah and Patel Were Partners Sharing Profits in the Ratio of 3:2:1. on 31.3.2014 Their Firm Was Dissolved. the Assets Were Realized and Liabilities Were Paid Off. the Accountant Prepared Realisation Account, Partner'S Capital Accounts and Cash Account but Forgot to Post Few Amounts in These Accounts. Concept: Dissolution of a Partnership Firm - Preparation of Realization Account, and Other Related Accounts.
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