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Byju's Answer
Standard XII
Accountancy
Realisation of Assets and Liabilities - Comprehensive
is an amount ...
Question

________ is an amount the firm has not been able to realise firm its debtors.

A
Bad debts
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B
Provisions
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C
Depreciation
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D
None
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Solution

The correct option is C Bad debts
Bad debts expense is related to a company's current asset accounts receivable. Bad debts expense is also referred to as uncollectible accounts expense or doubtful accounts expense. Bad debts expense results because a company delivered goods or services on credit and the customer did not pay the amount owed.

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Q. If a firm has realized its debtors and has paid off its creditors to the same extent then .
Q. A and B are partners in a firm sharing profits and losses in the ratio of 2 : 1 . On 31st March, 2018 , their Balance Sheet was:

Liabilities

₹

Assets

₹

Bank Overdraft

30,000

Cash in Hand

 6,000
General Reserve 56,000 Bank Balance 10,000
Investments Fluctuation Reserve 20,000 Sundry Debtors 26,000
A's Loan 34,000 Less: Provision for Doubtful Debtors 2,000 24,000
Capital A/c: Investments 40,000
A
 50,000 Stock

10,000
Furniture 10,000
Building 60,000
B's Capital 30,000

1,90,000

1,90,000


On that date , the partners decide to dissolve the firm . A took over Investments at an agreed valuation of ₹ 35,000. Other assets were realised as follows:
Sundry Debtors: Full amount . The firm could realise Stock at 15% less and Furniture at 20% less than the book value . Building was sold at ₹ 1,00,000.
Compensation to employees paid by the firm amounted to ₹ 10,000. This liability was not provided for in the above Balance Sheet.
You are required to close the books of the firm by preparing Realisation Account , Partners' Capital Accounts and Bank Account .
Q. A and B are partners in a firm sharing profits and losses in the ratio of 2 : 1. On 31st March, 2019, their Balance Sheet was:
Liabilities Amount
(₹)		 Assets Amount
(₹)
Bank Overdraft 30,000 Cash in Hand 6,000
General Reserve 56,000 Bank Balance 10,000
Investments Fluctuation Reserve 20,000 Sundry Debtors 26,000
A's Loan 34,000 Less: Provision for Doubtful Debtors 2,000 24,000
Capital A/c:
A 50,000 Investments 40,000
Stock 10,000
Furniture 10,000
Building 60,000
B's Capital 30,000
1,90,000 1,90,000

On that date, the partners decide to dissolve the firm. A took over Investments at an agreed valuation of ₹ 35,000. Other assets were realised as follows:
Sundry Debtors: Full amount. The firm could realise Stock at 15% less and Furniture at 20% less than the book value. Building was sold at ₹ 1,00,000.
Compensation to employees paid by the firm amounted to ₹ 10,000. This liability was not provided for in the above Balance Sheet.
You are required to close the books of the firm by preparing Realisation Account, Partners' Capital Accounts and Bank Account.
Q.

Pass journal entries for the following transactions :

(i) Realisation expenses amounted to Rs. 5,000.

(ii) Realisation expenses amounted to Rs. 8,000 were paid by partner X.

(iii) Realisation expenses amounted to Rs. 10,000 were paid by the firm on behalf of a partner.

(iv) Realisation expenses amounted to Rs. 15,000 were paid by the firm. Mr. X, one of the partners, has to bear these expenses.

(v) Realisation expenses amounted to Rs. 20,000 were paid by the firm. Rs. 8,000 were to be borne by the firm and the balance by Maruti, a partner.

Q. 80% of sales of 10,00,000 of a firm are on credit. It has a receivable turnover of 8. What is the average collection period (360 days a year) and average debtors of the firm?
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Standard XII Accountancy
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