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Model Test Papers M.15

14. JOURNAL
Date Particulars L.F. Dr. (`) Cr. (`)
(i) Realisation A/c ...Dr. 5,50,000
To Land and Building A/c 3,00,000
To Stock A/c 1,00,000
To Furniture A/c 1,00,000
To Computers A/c 50,000
(Being assets transferred)

(ii) Creditors A/c ...Dr. 1,05,000
To Realisation A/c 1,05,000
(Being the transfer of creditors)
(iii) Bank A/c ...Dr. 4,40,000
To Realisation A/c 4,40,000
(Being the land and building and stock realised)

(iv) X’s Capital A/c ...Dr. 2,000
Y’s Capital A/c ...Dr. 3,000
To Realisation A/c 5,000
(Being the loss on realisation adjusted)
(v) Workmen Compensation Reserve A/c ...Dr. 1,00,000
To X’s Capital A/c 40,000
To Y’s Capital A/c 60,000
(Being the reserve distributed)

(vi) X’s Capital A/c ...Dr. 2,38,000
Y’s Capital A/c ...Dr. 3,57,000
To Bank A/c 5,95,000
(Being the final payments made to partners)

Or
Dr. REALISATION ACCOUNT Cr.
Particulars ` Particulars `

To Land A/c 1,20,000 By Creditors A/c 65,000
To Machinery A/c 65,000 By Bills Payable A/c 35,000
To Goodwill A/c 10,000 By Bank A/c (Assets Realised):
To Stock A/c 25,000 Land 96,000
To Debtors A/c 20,000 Machinery 35,000
To Ram’s Capital A/c (Creditors) 55,250 Stock 18,750
To Shyam’s Capital A/c (Bills Payable) 35,000 Debtors 12,500 1,62,250
To Shyam’s Capital A/c (Expenses) 1,750 By Loss on Realisation transferred to:
Ram’s Capital A/c 27,900
Shyam’s Capital A/c 41,850 69,750
3,32,000 3,32,000