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M.140 An Aid to Accountancy—CBSE XII

Or
JOURNAL
Date Particulars L.F. Dr. (`) Cr. (`)

2018
April 1 Realisation A/c ...Dr. 2,60,000
To Goodwill A/c 80,000
To Land and Building A/c 80,000
To Stock A/c 60,000
To Debtors A/c 40,000
(Being the sundry assets transferred to Realisation Account)
Creditors A/c ...Dr. 50,000
Workmen Compensation Fund A/c ...Dr. 80,000
To Realisation A/c 1,30,000
(Being the creditors and Workmen Compensation Fund transferred
to Realisation Account)
Bank A/c (` 50,000 + ` 35,000) ...Dr. 85,000
To Realisation A/c 85,000
(Being the stock and debtors realised)
Realisation A/c ...Dr. 80,000
To Bank A/c 80,000
(Being the Workmen Compensation Claim paid)
P’s Capital A/c ....Dr. 75,000
Q’s Capital A/c ...Dr. 50,000
To Realisation A/c (WN 1) 1,25,000
(Being the loss on realisation transferred to P’s and Q’s Capital Accounts)
P’s Capital A/c ...Dr. 5,000
Q’s Capital A/c ...Dr. 20,000
To Bank A/c (WN 2) 25,000
(Being the final payment made to P and Q)
Working Notes:
1. Dr. REALISATION ACCOUNT Cr.
Particulars ` Particulars `
To Sundry Assets—Transfer: By Creditors 50,000
Goodwill 80,000 By Workmen Compensation Reserve 80,000
Land and Building 80,000 By Bank A/c (` 50,000 + ` 35,000) 85,000
Stock 60,000 By Loss transferred to:
Debtors 40,000 2,60,000 P’s Capital A/c 75,000
To Bank A/c (Workmen Compensation Claim) 80,000 Q’s Capital A/c 50,000 1,25,000
3,40,000 3,40,000

2. Dr. PARTNERS’ CAPITAL ACCOUNTS Cr.
Particulars P (`) Q (`) Particulars P (`) Q (`)
To Realisation A/c 75,000 50,000 By Balance b/d 80,000 70,000
To Bank A/c (Final Payment) 5,000 20,000
(Balancing Figure)
80,000 70,000 80,000 70,000