Page 203 - DEBKVOL-1

8.28 Double Entry Book Keeping—CBSE XII
Solution:

In the Books of Fox and Wolf
Dr. REALISATION ACCOUNT Cr.
Particulars ` Particulars `
To Sundry Assets (Transfer): By Sundry Liabilities (Transfer):
Stock A/c 18,000 Creditors A/c 88,500
Debtors A/c 42,000 Bills Payable A/c 23,000
Furniture A/c 12,000 Ms. Wolf’s Loan A/c 40,000 1,51,500
Machinery A/c 1,06,500 1,78,500 By Bank A/c (Assets Realised):
To Bank A/c (Liabilities Paid): Stock 10,500
Bills Payable 23,000 Debtors 27,750
Creditors 86,730 Machinery 88,500 1,26,750
Ms. Wolf’s Loan 38,500 By Fox’s Capital A/c (Furniture Taken Over) 7,500
Claim for Damages 2,000 1,50,230 By Bank A/c (Recovery of Bad Debts) 1,800
To Bank A/c (Expenses) 2,100 By Loss on Realisation:
Fox’s Capital A/c 21,640
Wolf’s Capital A/c 21,640 43,280
3,30,830 3,30,830

Dr. PARTNERS’ CAPITAL ACCOUNTS Cr.
Particulars Fox Wolf Particulars Fox Wolf
` ` ` `
To Profit and Loss A/c 11,250 11,250 By Balance b/d 30,000 24,000
To Realisation A/c 7,500 By Bank A/c 10,390 8,890
(Furniture Taken Over)
To Realisation A/c (Loss) 21,640 21,640
40,390 32,890 40,390 32,890

Dr. BANK ACCOUNT Cr.
Particulars ` Particulars `
To Balance b/d 4,500 By Realisation A/c (Liabilities Paid) 1,50,230
To Realisation A/c By Realisation A/c (Expenses) 2,100
Assets Realised 1,26,750
Recovery of Bad Debts 1,800 1,28,550
To Fox’s Capital A/c (Cash Brought in) 10,390
To Wolf’s Capital A/c (Cash Brought in) 8,890
1,52,330 1,52,330