Page 269 - AAAXII

M.256 An Aid to Accountancy—CBSE XII

Dr. REALISATION ACCOUNT Cr.
Particulars ` Particulars `
To Sundry Assets—Transfer: By Provision for Doubtful Debts A/c 1,000
Stock 5,000 By Creditors A/c 88,000
Debtors 20,000 By A’s Capital A/c (Stock) ?
Fixed Assets 40,000 By Bank A/c:
To Bank A/c (Creditors) ? Debtors 18,800
To A’s Capital A/c (Realisation Expenses) 3,000 Fixed Assets 64,000 82,800
To Gain (Profit) transferred to:
A’s Capital A/c ?
B’s Capital A/c 3,960 ?
1,75,800 1,75,800

Dr. PARTNERS’ CAPITAL ACCOUNTS Cr.
Particulars A B Particulars A B
` ` ` `
To Bank A/c (Realisation Expenses) 1,000 ... By Balance b/d 10,000 30,000
To Advertisement Suspense A/c ? 100 By General Reserve A/c 8,000 ?
To Realisation A/c (Stock) 4,000 ... By Realisation A/c (Expenses) 3,000 ...
To Bank A/c ? ? By Realisation A/c (Gain) 15,840 ?
36,840 35,960 36,840 35,960

Dr. BANK ACCOUNT Cr.
Particulars ` Particulars `
To Balance b/d 73,500 By Realisation A/c 88,000
To Realisation A/c: By A’s Capital A/c ?
? ? By A’s Capital A/c 31,440
? ? ? By B’s Capital A/c 35,860
1,56,300 1,56,300

Or
Following is the Balance Sheet of X and Y, who share profits and losses in the ratio of
4 : 1, as at 31st March, 2018:

Liabilities ` Assets `
Sundry Creditors 8,000 Cash at Bank 20,000
Bank Overdraft 6,000 Debtors 17,000
X’s Brother’s Loan 8,000 Less: Provision for Doubtful Debts 2,000 15,000
Y’s Loan 3,000 Stock 15,000
Investment Fluctuation Reserve 5,000 Investments 25,000
Capital Accounts: Building 25,000
X 50,000 Goodwill 10,000
Y 40,000 90,000 Profit and Loss A/c 10,000
1,20,000 1,20,000

The firm was dissolved on 1st April, 2018 and following transactions took place:
(a) X agreed to pay his brother’s loan.
(b) Debtors of ` 5,000 proved bad.