CBSE (Arts) Class 12CBSE
Share
Notifications

View all notifications

Hanif and Jubed Were Partners in a Firm Sharing Profits in the Ratio of Their Capitals. on the 31st March 2013 Their Balance Sheet Was as Follows: A. Debtors Were Realised at a Discount of 5%, 50% of the Stock Was Taken Over by Hanif at 10% Less than the Book Value. Remaining Stock Was Sold for Rs 65,000. B. Furniture Was Taken Over by Jubed for Rs 1,35,000. Machinery Was Sold as Scrap for Rs 74,000. C. Creditors Were Paid in Full. D. Expenses on Realisation Rs 8,000 Were Paid by Hanif. - CBSE (Arts) Class 12 - Accountancy

Login
Create free account


      Forgot password?

Question

Hanif and Jubed were partners in a firm sharing profits in the ratio of their capitals. On the 31st March 2013 their Balance Sheet was as follows:

Balance Sheet of Hanif and Jubed as on 31st March 2013
Liabilities Rs Assets Rs

Creditors

Workman Companion Fund

General Reserve

Hanif’s Current Account

Capital's:

   Hanif      10,00,000

   Jubed       5,00,000

1,50,000

3,00,000

75,000

25,000

 

 

15,00,000

Bank

Debtors

Stock

 

Furniture

Machinery

Jubed’s Current Account

2,00,000

3,40,000

1,50,000

 

4,60,000

8,20,000

80,000

  20,50,000   20,50,000

On the above date the firm was dissolved:

a. Debtors were realised at a discount of 5%, 50% of the stock was taken over by Hanif at 10% less than the book value. Remaining stock was sold for Rs 65,000.
b. Furniture was taken over by Jubed for Rs 1,35,000. Machinery was sold as scrap for Rs 74,000.
c. Creditors were paid in full.
d. Expenses on realisation Rs 8,000 were paid by Hanif.

Prepare Realisation Account.

Solution

Realisation Account
Dr.   Cr.
Particulars Rs  Particulars Rs

To Sundry Asset A/c

Debtors             3,40,000

Stock                1,50,000

Furniture           4,60,000

Machinery          8,20,000

To Bank A/c

Hanif’s Current A/c  (Realisation Expenses)

 

 

 

 

 

 

 

 

17,70,000

1,50,000

8,000

 

 

 

 

By Sundry Liabilities A/c

Creditors

Bank A/c:

Debtors      3,23,000

Stock            65,000

Machinery      74,000

Hanif’s Current A/c ( stock)

Jubed’s Current A/c (Furniture)

Loss transferred to:

Hanif’s Current A/c    7,42,333

Jubed’s Current A/c    3,71,167

 

1,50,000

 

 

 

4,62,000

67,500

1,35,000

 

 

11,13,500

 

19,28,000

  19,28,000

 

  Is there an error in this question or solution?
Solution Hanif and Jubed Were Partners in a Firm Sharing Profits in the Ratio of Their Capitals. on the 31st March 2013 Their Balance Sheet Was as Follows: A. Debtors Were Realised at a Discount of 5%, 50% of the Stock Was Taken Over by Hanif at 10% Less than the Book Value. Remaining Stock Was Sold for Rs 65,000. B. Furniture Was Taken Over by Jubed for Rs 1,35,000. Machinery Was Sold as Scrap for Rs 74,000. C. Creditors Were Paid in Full. D. Expenses on Realisation Rs 8,000 Were Paid by Hanif. Concept: Dissolution of a Partnership Firm - Preparation of Realization Account, and Other Related Accounts.
S
View in app×