Page 153 - MA12

Model Test Papers M.59

8.
Dr. REALISATION ACCOUNT Cr.
Particulars ` Particulars `
To Debtors 2,42,000 By Sundry Creditors 60,000
To Stock 78,000 By Loan from Mrs. Mohan 15,000
To Investment 1,70,000 By Provision for Doubtful Debts 12,000
To Fixed Assets 10,000 By Ram’s Capital A/c:
To Ram’s Capital A/c (Creditors) 60,000 Fixed Assets 8,000
To Sohan’s Capital A/c (Loan + Interest) 15,300 Debtors 1,72,000 1,80,000
To Ram’s Capital A/c (Remuneration) 2,700 By Mohan’s Capital A/c:
Stock 70,000
Investments 72,000 1,42,000
By Sohan’s Capital A/c (Investments) 80,000
By Bank A/c (Debtors) 21,000
By Loss on Realisation transferred to:
Ram’s Capital A/c 40,800
Mohan’s Capital A/c 13,600
Sohan’s Capital A/c 13,600 68,000
5,78,000 5,78,000

Dr. PARTNERS’ CAPITAL ACCOUNTS Cr.
Particulars Ram Mohan Sohan Particulars Ram Mohan Sohan
` ` ` ` ` `

To Realisation A/c 1,80,000 1,42,000 80,000 By Balance b/d 2,45,000 90,000 60,000
To Realisation A/c (Loss) 40,800 13,600 13,600 By Realisation A/c 60,000 ... 15,300
To Advertisement By Realisation A/c 2,700 ... ...
Suspense A/c 30,000 10,000 10,000 By General Reserve A/c 60,000 20,000 20,000
To Bank A/c 1,16,900 ... ... By Bank A/c ... 55,600 8,300
(Balancing Figure) (Balancing Figure)
3,67,700 1,65,600 1,03,600 3,67,700 1,65,600 1,03,600

Dr. BANK ACCOUNT Cr.
Particulars ` Particulars `

To Balance b/d 32,000 By Ram’s Capital A/c 1,16,900
To Realisation A/c (Debtors) 21,000 (Final Payment)
To Mohan’s Capital A/c (Cash brought in) 55,600
To Sohan’s Capital A/c (Cash brought in) 8,300
1,16,900 1,16,900
Working Notes:
1. Book Value of Investment taken over by Mohan = ` 72,000 × 10/9 = ` 80,000.
2. Remaining investment = ` 1,70,000 – ` 80,000 = ` 90,000.
3. Book Value of Investment taken over by Sohan = 90% of ` 90,000 = ` 81,000.
4. Agreed value of investment taken over by Sohan = ` 81,000 – ` 1,000 = ` 80,000.
5. If an asset (whether recorded on unrecorded) is given in payment of a liability (whether recorded or
unrecorded), no entry is passed for such payment. Therefore, no entry has been passed for adjustment (e).