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M.232 An Aid to Accountancy—CBSE XII

Following was agreed upon:
(a) X agreed to pay his wife’s loan.
(b) Debtors realised ` 24,000. Building realised ` 1,52,000.
(c) Bills Receivable were settled at a loss of ` 1,400.

(d) Y took over all Investments at ` 27,000.
(e) Sundry Creditors were payable after 2 months. They were paid immediately at
10% discount.

(f ) Realisation Expenses amounted to ` 2,500.
(g) Firm had an unrecorded asset which was valued at ` 5,000, which was given in
full settlement of an unrecorded liability of ` 6,000.

Prepare Realisation Account, Bank Account and Partners’ Capital Accounts.
Or
Following is the Balance Sheet of Vinit and Yogesh as on 31st March, 2018:

BALANCE SHEET
as on 31st March, 2018
Liabilities ` Assets `
Creditors 3,60,000 Bank 80,000
Mrs. Vinit’s Loan 60,000 Stock 70,000
Yogesh’s Loan 1,00,000 Investments 1,00,000
Investment Fluctuation Reserve 30,000 Debtors 2,00,000
Capital A/cs: Vinit 2,00,000 Less: Provision for Doubtful Debts 20,000 1,80,000
Yogesh 1,00,000 3,00,000 Fixed Assets 3,80,000
Profit and Loss A/c 40,000
8,50,000 8,50,000

The firm was dissolved on 1st April, 2018. The assets were realised and the liabilities
were paid as under:
(a) Vinit promised to pay Mrs. Vinit’s Loan and took away stock at 20% discount.
(b) Yogesh took 90% of the investments at 10% discount.
(c) Sunil, a debtor of ` 50,000 had to pay the amount due 3 months after the date of
dissolution. He was allowed a discount of 5% for making payment immediately.
The remaining debtors were collected in full.
(d) Creditors were paid ` 3,50,000 in full settlement of their claim.
(e) Fixed Assets realised ` 2,82,000 and remaining investment realised ` 7,500.

(f) There was an old furniture which has been written off from the books. Yogesh took
the same for ` 4,000.

(g) Realisation expenses ` 2,000 were paid by Vinit.
Prepare Realisation Account, Bank Account and Partners’ Capital Accounts. (6)