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Question 39 Chapter 7 – Class 12 Part 1 Unimax
39. X, Y and Z commenced business on January 1, 2021 with capitals of 1,20,000, 50,000 and 50,000 respectively. Profits and losses were shared in 2 : 2 : 3 in 2021 and in 5 : 5 : S in 2022. Capitals carried interest at 10% p.a. and Y and Z were allowed annual salary of 4,000 each. During 2021 and 2022 they made same profits of 54,000 (before appropriation of profits). Drawings of each partner were Z 8,000 per year.
On 31st December, 2022 the firm was dissolved. Creditors on that date were 40,000. The Assets (except cash at Bank 7,000) realized 2,75,000 net. Realisation expenses came at 4,000. Give necessary accounts to close the books of the firm.
The solution of Question 39 Chapter 7 – Class 12 Part 1 Unimax: –
Realisation a/c
| Particulars | Amount | Particulars | Amount | ||
| To Sundry Assets | 3,43,000 | By Sundry creditors | 40,000 | ||
| To Bank A/c | By Bank A/c | 2,75,000 | |||
| – Creditors | 40,000 | By Loss on realisation transferred to capital A/cs | |||
| – Expenses | 4,000 | 44,000 | X | 20,000 | |
| Y | 20,000 | ||||
| Z | 32,000 | 72,000 | |||
| 3,87,000 | 3,87,000 | ||||
Partner’s Capital a/c
| Particulars | X | Y | Z | Particulars | X | Y | Z |
| To Realisation A/c | 20,000 | 20,000 | 32,000 | By balanced b/d | 1,40,000 | 1,00,000 | 70,000 |
| To Bank A/c | 1,20,000 | 80,000 | 38,000 | ||||
| 1,40,000 | 1,00,000 | 70,000 | 1,40,000 | 1,00,000 | 70,000 |
Bank A/c
| Particulars | Amount | Particulars | Amount |
| To balanced b/d | 7,000 | By Realisation A/c | 44,0000 |
| To Realisation A/c | 2,75,000 | By X’s capital A/c | 1,20,000 |
| -Assets realised | By Y’s capital A/c | 80,000 | |
| By Z’s capital A/c | 38,000 | ||
| 2,82,000 | 2,82,000 |
Working Note:
Balance Sheet on Date of Dissolution
| Liabilities | Amount | Assets | Amount | ||
| Capital A/cs | cash at Bank | 7,000 | |||
| X | 1,40,000 | Sundry Assets (B.F.) | 3,43,000 | ||
| Y | 1,00,000 | ||||
| Z | 70,000 | 3,10,000 | |||
| Creditors | 40,000 | ||||
| 3,50,000 | 3,50,000 | ||||
CAPITAL AS ON DATE OF DISSOLUTION
| A | B | C | |
| Capitals as on 1.1.2021 | 1,20,000 | 80,000 | 50,000 |
| Add : Interest on capital @ 10% P.A. | 12,000 | 8,000 | 5,000 |
| Add : Salary | 4,000 | 4,000 | |
| Add : Profits (54,000-33,000) in 2 : 2 : 3 | 6,000 | 6,000 | 9,000 |
| 1,38,000 | 98,000 | 68,000 | |
| Less : Drawings | 8,000 | 8,000 | 8,000 |
| Capital as on 1.1.2022 | 1,30,000 | 90,000 | 60,000 |
| Add : Interest on Capital @ 10% | 13,000 | 9,000 | 6,000 |
| Add : Salary | 4,000 | 4,000 | |
| Add : Profits (54,000-36,000) in 5 : 5 : 8 | 5,000 | 5,000 | 8,000 |
| 1,48,000 | 1,08,000 | 78,000 | |
| Less : Drawings | 8,000 | 8,000 | 8,000 |
| Capitals as on 31.12.2022 | 1,40,000 | 1,00,000 | 70,000 |
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