Page 183 - DEBKVOL-1

8.8 Double Entry Book Keeping—CBSE XII
Solution: JOURNAL

Date Particulars L.F. Dr. (`) Cr. (`)
(i) Bank A/c ...Dr. 64,000
To Realisation A/c 64,000
(Debtors of ` 12,000 proved bad and rest paid the amount)
(ii) Realisation A/c ...Dr. 6,650
To Parul’s Capital A/c 6,650
(Parul agreed to pay off her husband’s loan at a discount of 5%)
(iii) Payal’s Capital A/c ...Dr. 3,000
To Realisation A/c 3,000
(Unrecorded machine taken by Payal)
(iv) Realisation A/c ...Dr. 4,000
To Bank A/c 4,000
(Contingent liability discharged)
(v) Parul’s Capital A/c ...Dr. 9,000
Payal’s Capital A/c ...Dr. 9,000
Priyanka’s Capital A/c ...Dr. 9,000
To Profit and Loss A/c 27,000
(Accumulated loss distributed)
(vi) Realisation A/c ...Dr. 33,000
To Priyanka’s Capital A/c 33,000
(Realisation expenses of ` 15,000 paid by Priyanka and remuneration of
` 18,000 also credited to her account)
Illustration 6.
Hanif and Jubed were partners in a firm sharing profits in the ratio of their capitals. On 31st
March, 2013, their Balance Sheet was as follows:
BALANCE SHEET OF HANIF AND JUBED as at 31st March, 2013
Liabilities ` Assets `
Creditors 1,50,000 Bank 2,00,000
Workmen Compensation Reserve 3,00,000 Debtors 3,40,000
General Reserve 75,000 Stock 1,50,000
Hanif’s Current Account 25,000 Furniture 4,60,000
Capital A/cs: Machinery 8,20,000
Hanif 10,00,000 Jubed’s Current Account 80,000
Jubed 5,00,000 15,00,000
20,50,000 20,50,000

On the above date the firm was dissolved:
(i) 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 ` 65,000.
(ii) Furniture was taken over by Jubed for ` 1,35,000. Machinery was sold as scrap for
` 74,000.
(iii) Creditors were paid in full.
(iv) Expenses on realisation ` 8,000 were paid by Hanif.
Prepare Realisation Account. (AI 2014)