A, B, and C were partners sharing profits and losses in the proportion of 2 : 2 : 1. Following is their balance sheet as on 31st March, 2013. Balance sheet as on 31st March, 2013 Liabilities Amount (Rs. ) Assets Amount (Rs.) Amount (Rs.) Capital Account Machinery 25,000 A 30,000 Stock 10,000 B 10,000 Debtors 27,500 C 10,000 Less: R.D.D. 1,500 26,000 General Reserve 3,000 Investment 12,000 Creditors 20,000 Profit and Loss A/c 9,000 A’s Loan Account 4,000 Bank 2,000 Bills Payable 7,000 84,000 84,000 On the above date, the partners decide to dissolve the firm.(1) Assets were realised as -Machinery Rs. 22,500, Stock Rs. 9,000, Investment Rs. 10,500, Debtors Rs. 22,500(2) Dissolution expenses were Rs. 1,500.(3) Goodwill of the firm realised Rs. 12,000Pass the necessary journal entries int he books of the firm.

Journal Entries in the books of the firm. Date Particular LF Amt(Dr.) Amt(Cr.) 1 For transfer of assets to realisation account: Realisation A/c Dr. 74,500 To Machinery A/c 25,000 To Stock A/c 10,000 To Debtors A/c 27,500 To Investment A/c 12,000 2. For transfer of liabilities : Creditors A/c Dr. 20,000 Bills Payable A/c Dr. 7,000 Reserve for Doubtful Debts A/c Dr. 1,500 To Realisation A/c 28,500 3. For Assets sold : Bank A/c Dr. 76,500 To Realisation A/c 76,500 4. For payment of liabilities : Realisation A/c Dr. 27,000 To Bank A/c 27,000 5. For payment of dissolution expenses: Realisation A/c Dr. 1,500 To Bank A/c 1,500 6. For distribution of profit among partners : Realisation A/c Dr. 2,000 To A's Capital A/c 8,00 To B's Capital A/c 8,00 To C's Capital A/c 4,00 7. For payment of loan: A's loan A/c Dr. 4,000 To Bank A/c 4,000 8. For division of General Reserve: General Reserve A/c Dr. 3,000 To A's Capital A/c 1,200 To B's Capital A/c 1,200 To C's Capital A/c 6,00 9. For division of Debit balance of profit and loss: A's Capital A/c Dr. 3,600 B's Capital A/c Dr. 3,600 C's capital A/c Dr. 1,800 To Profit and loss A/c 9,000 10. For payment of capital of partners: A's Capital A/c Dr. 28,400 B's Capital A/c Dr. 8,400 C's Capital A/c Dr. 9,200 To Bank A/c 46,000

A, B, and C were partners sharing profits and losses in the proportion of 2:2:1. Following is their balance sheet as on 31st March, 2013.

प्रश्न

A, B, and C were partners sharing profits and losses in the proportion of 2 : 2 : 1. Following is their balance sheet as on 31st March, 2013.

Balance sheet as on 31st March, 2013

Liabilities	Amount (Rs. )	Assets	Amount (Rs.)	Amount (Rs.)
Capital Account		Machinery		25,000
A	30,000	Stock		10,000
B	10,000	Debtors	27,500
C	10,000	Less: R.D.D.	1,500	26,000
General Reserve	3,000	Investment		12,000
Creditors	20,000	Profit and Loss A/c		9,000
A’s Loan Account	4,000	Bank		2,000
Bills Payable	7,000
	84,000			84,000

On the above date, the partners decide to dissolve the firm.(1) Assets were realised as -
Machinery Rs. 22,500, Stock Rs. 9,000, Investment Rs. 10,500, Debtors Rs. 22,500
(2) Dissolution expenses were Rs. 1,500.
(3) Goodwill of the firm realised Rs. 12,000
Pass the necessary journal entries int he books of the firm.

रोजनामा प्रविष्टि

उत्तर

Journal Entries in the books of the firm.

Date	Particular		LF	Amt(Dr.)	Amt(Cr.)
1	For transfer of assets to realisation account:
	Realisation A/c	Dr.		74,500
	To Machinery A/c				25,000
	To Stock A/c				10,000
	To Debtors A/c				27,500
	To Investment A/c				12,000

2.	For transfer of liabilities :
	Creditors A/c	Dr.		20,000
	Bills Payable A/c	Dr.		7,000
	Reserve for Doubtful Debts A/c	Dr.		1,500
	To Realisation A/c				28,500

3.	For Assets sold :
	Bank A/c	Dr.		76,500
	To Realisation A/c				76,500

4.	For payment of liabilities :
	Realisation A/c	Dr.		27,000
	To Bank A/c				27,000

5.	For payment of dissolution expenses:
	Realisation A/c	Dr.		1,500
	To Bank A/c				1,500

6.	For distribution of profit among partners :
	Realisation A/c	Dr.		2,000
	To A's Capital A/c				8,00
	To B's Capital A/c				8,00
	To C's Capital A/c				4,00

7.	For payment of loan:
	A's loan A/c	Dr.		4,000
	To Bank A/c				4,000

8.	For division of General Reserve:
	General Reserve A/c	Dr.		3,000
	To A's Capital A/c				1,200
	To B's Capital A/c				1,200
	To C's Capital A/c				6,00

9.	For division of Debit balance of profit and loss:
	A's Capital A/c	Dr.		3,600
	B's Capital A/c	Dr.		3,600
	C's capital A/c	Dr.		1,800
	To Profit and loss A/c				9,000

10.	For payment of capital of partners:
	A's Capital A/c	Dr.		28,400
	B's Capital A/c	Dr.		8,400
	C's Capital A/c	Dr.		9,200
	To Bank A/c				46,000

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Concept of Dissolution of Partnership Firm

क्या इस प्रश्न या उत्तर में कोई त्रुटि है?

Q 5.1 Q 4 Q 5.2

2015-2016 (March)

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2015-2016 (March) (with solutions)

Q 5.1 | 10 marks

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Concept of Dissolution of Partnership Firm

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Concept of Dissolution of Partnership Firm

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संबंधित प्रश्न

Dissolution expenses are credited to ______.

K and P were partners in a firm sharing profits in the ratio of 7:5. On 31-1-2016 their firm was dissolved. After transferring assets (other than cash) and outsiders liabilities to the realization account, you are given the following information:

(a) Raman, a creditor for Rs.4, 20,000 accepted building valued at Rs.8, 00,000 and paid the balance to the firm by a cheque.

(b) Rajeev, a second creditor for Rs.1, 70,000 accepted machinery valued at Rs.1, 65,000 in full settlement of his claim.

(c) Ranjan, a third creditor for Rs.90,000 accepted investments of Rs.45,000 and a bank draft of Rs.43,000 in his favour in full settlement of his claim.

(d) P we appointed to do the work of dissolution for which he was allowed Rs.2,000. Actual expenses of dissolution Rs.2,400 were paid by P.

Pass necessary journal entries for the above transactions in the books of K and P.

Distinguish between 'Dissolution of Partnership' and 'Dissolution of Partnership Firm on the basis of 'Economic Relationship'.

C and D were partners in a firm sharing profits in the ratio of 3:2. On 28-2-2016 the firm was dissolved. After transferring assets (other than cash) and outsiders' liabilities to realization account you are given the following information :

(a) A creditor for Rs 2 00,000 accepted building of Rs 2,80,000 at Rs 2,20,000 and paid the firm Rs 20,000.

(b) A second creditor for Rs 75,000 accepted furniture at Rs 60,000 in full settlement of his claim.

(c) A third creditor amounting to Rs 80,000 accepted Rs 20,000 in cash and investments of the book value of Rs 65,000 in full settlement of his claim.

(d) Loss on dissolution was Rs 7,500. Pass necessary journal entries for the above transactions in the books of the firm assuming that all payments were made by cheque.

R and L were partners in a firm sharing profits in the ratio of 13:7. On 4-3-2016 their firm was dissolved. After transferring assets (other than cash) and outsiders liabilities to the realization account, you are given the following information :

(a) Subh, a creditor for Rs 4,90,000 accepted building at Rs 6,50,000 and paid the balance to the firm by a cheque.

(b) Sudha, a second creditor for Rs 1, 80,000 accepted machinery of the book value of Rs 1,80,000 at Rs 1,76,000 in full settlement of his claim.

(c) Sudhir, a third creditor for Rs 2,00,000 accepted investments of Rs 1,20,000 and a bank draft of Rs 79,000 in full settlement of his claim.

(d) Loss on dissolution was Rs 30,000. Pass necessary journal entries for the above transactions in the books of the firm

Pass necessary journal entries on the dissolution of a partnership firm in the following cases :

1) Expenses of dissolution were Rs 9,000.

2) Expenses of dissolution Rs 3,400 were paid by a partner, Vishal

3) Shiv, a partner, agreed to do the work for dissolution for a commission of Rs 4,500. He also agreed to bear the dissolution expenses. Actual dissolution expenses Rs 3,900 were paid from the firm's bank account.

4) Naveen, a partner, agreed to look after the dissolution work for which he was allowed a remuneration of Rs 3,000. Naveen also agreed to bear the dissolution expenses. Actual expenses on dissolution Rs 2,700 were paid by Naveen.

5) Vivek, a partner, was appointed to look after the dissolution work for a remuneration of Rs 7,000. He agreed to bear the dissolution expenses. Actual dissolution expenses Rs 6,500 were paid by Rishi, another partner, on behalf of Vivek.

6) Gaurav, a partner, was appointed to look after the work of dissolution for a commission of Rs 12,500. He agreed to bear the dissolution expenses. Gaurav took over furniture of Rs 12,500 as his commission. The furniture had already been transferred to realisation account.

On dissolution, the cash or bank account is closed automatically.

Ashwin, Bhavin and Pravin carried on business. They share profits an losses in the ratio of 5 : 3 : 2 respectively. Their Balance Sheet as on 31st March, 2016 was as under :

Balance Sheet as on 31st March, 2016

Liabilities	Amount	Assets	Amount
Sundry creditors	42,000	Plant and machinery	40,000
Bhavin's loan	10,000	Investment	16,000
Reserve fund	40,000	Stock	60,000
Capital accounts :		Debtors 36,000
Ashwin	40,000	Less : R.D.D 2,000
Bhavin	20,000	Bank	10,000
Pravin	8,000
	1,96,000		1,60,000

On the above date, the firm was dissolved, and the assets realised were as under :

1. Investment Rs 10,000. Stock Rs 48,000, and Debtors Rs 30,000

2. Plant and machinery were taken over by Ashwin at book value.

3. Sundry creditors and Bhavin's loan were paid in full.

4. Realisation expenses incurred Rs 2,000.

Prepare :
(1) Realisation Account
(2) Partners' Capital Account
(3) Bank Account

Aniket Ltd issued 40,000 equity shares of ` 100 each payable as follows :

On application Rs 20
On allotment Rs 30
On first call Rs 30
On second call Rs 20

The company received applications for 50,000 equity shares. Allotment of shares was made on pro-rata basis. Excess application money were adjusted to allotment. Share allotment and calls were made and also received, except Mr. Sanish who was holding 1,000 shares failed to pay both the calls. His shares were forfeited after the second call.
Record the above transactions in the books of Aniket Ltd

Give the word/term/phrase which can substitute the following statement.

Winding up of partnership business.

Answer in one sentence only.

Which accounts are not transferred to Realisation account?

State whether the following statements is True or False.

At the time of dissolution of Partnership Firm all assets should be transferred to Realisation A/c.

State whether the following statement is True or False.
At the time of dissolution loan from partner will be transferred to Realisation Account.

State whether the following statement is True or False with reason.

Dissolution takes place when the relation among the partners comes to an end.

State whether the following statement is True or False with reason.

Realisation Loss is not transferred to the insolvent partner’s capital account.

In case of dissolution assets and liabilities are transferred to ______ A/c.

Select the most appropriate alternative from those given below :

Partnership is compulsorily dissolved when the partners of the firm become ____________

Sushil and Sumit were in partnership sharing profits and losses in the proportion of 3/5 and 2/5 respectively. On 31^st March, 2005 they decide to dissolve the firm when their Balance Sheet was as under:

Balance Sheet as on 31^st March, 2005

Liabilities	Amount (Rs)	Assets	Amount (Rs)
Sushil’s Capital	20,000	Plant and Machinery	15,000
Sumit's Capital	18,000	Stock	15,000
General Reserve	5,000	Sundry Debtors	22,000
Sumit’s Loan A/c	2,000	Bank	3,000
Sundry Creditors	10,000
	55,000		55,000

The Assets realised as follows: Stock Rs 14,000, Plant and Machinery Rs 12,000 and Debtors Rs 20,000. The Sundry Creditors were paid Rs 9,000 in full settlement.

Prepare: Realisation Account, Partners Capital Accounts and Bank Account.

A, B and C were partners sharing profits and losses in the ratio of 3:2:1. On 31^st March, 2010. Their Balance Sheet was as follows:

Balance Sheet as on 31^st March, 2010

Liabilities	Amount (Rs)	Assets		Amount (Rs)
Sundry Creditors	15400	Cash at Bank		3500
Bills payable	3600	Stock		19800
A’s loan A/c	10000	Debtors	15000	14000
Capital Account:		Less : Provision	1000	14000
A	20000	Join Life Policy		4000
B	16000	Plant and Machinery		43700
C	8000
Reserve Fund	12000
	85000			85000

The firm was dissolved on 31^st March, 2010 and the assets realised as follows:

1) Join Life Policy was taken over by Mr. A at Rs 5,000.

2) Stock realised Rs 18,000, Debtors realised Rs 14,500, Plant and Machinery was sold for Rs 36,000.

3) Liabilities were paid in full. In addition one bill for Rs 700 under discount was dishonoured and had to be taken up by the firm.

4) There were no realisation expenses.

Give the Journal entries and necessary Ledger Accounts to close the books of the firm.

Pannalal, Babulal and Hiralal were partners sharing profits and losses in the proportion of 2:2:1, following is their Balance Sheet as on 31^st March, 2008.

Balance Sheet as on 31^st March, 2008

Liabilities	Amount (Rs)	Assets		Amount (Rs)
Capital Accounts:		Machinery		25000
Pannalal	30000	Stock		10000
Babulal	10000	Debtors	27500	26000
Hiralal	10000	Less : R.D.D	1500	26000
General Reserve	3000	Investment		12000
Creditors	20000	Profit and Loss A/c		9000
Pannalal’s Loan A/c	4000	Bank		2000
Bills payable	7000
	84000			84000

On the above date the partners decided to dissolve the firm:

1) Assets were realised: Machinery Rs 22,500, Stock Rs 9,000, Investment Rs 10,500, Debtors Rs 22,500.

2) Dissolution expenses were Rs 1,500.

3) Goodwill of the firm realised Rs 12,000

Pass the necessary Journal entries in the books of the firm.

(When one partner becomes insolvent)
Rahul, Rohit and Ramesh were partners in a firm sharing profit and losses in the ratio of 2:2:1 respectively.The Balance Sheet as on 31^st March, 2012 was as follows:
Balance Sheet as on 31^st December, 2011

Liabilities	Amount (Rs)	Assets		Amount (Rs)
Sundry Creditors	20000	Cash at Bank		8000
Bills payable	5000	Stock		20000
General Reserve	6000	Debtors	16000	15000
Rahul’s Loan A/c	16000	Less : R.D.D	1000	15000
Capital Account		Plant and Machinery		30000
Rahul	25000	Furniture		6000
Rohit	10000	Ramesh’s Capital A/c		3000
	82000			82000

The firm was dissolved on the above date:

The Assets realised as follows:
Debtors Rs 9,000, Plant and Machinery Rs 26,000, Stock Rs 14,000 and Furniture Rs 3,000.
The Creditors were paid Rs 18,000 in full settlement and the bills payable were paid in full.
The realisation expenses amounted to Rs 3,000.
Ramesh become insolvent and was able to bring in only Rs 1,800 from his private estate.

Prepare:

Realisation A/c
Bank A/c and
Partner’s Capital A/c

State whether the following statement is True or False.

At the time of disolution of a partnership firm all assets should be transfered to realiasation account.

Manish and Co. Ltd. made an issue of 40000 equity shares of 20 each payable as follows :

Application ₹ 5 per share

Allotment ₹ 10 per share

First call ₹ 3 per share

Second call and
final call ₹ 2 per share

The company received applications for 50000 share of which applications for 10000 shares were rejected and money refunded . All the shareholders paid upto second call except Sunita , the allotee of 400 shares , failed to pay the final call. the expenses of issuing amounted to ₹ 6000 .

Pass Journal entries in the books of Manish and Co . Ltd.

Rahul, Rohit and Ramesh were partners in a firm sharing profits and losses in the ratio of 2:2:1 respectively. The Balance Sheet as on 31.03.2013 was as follows :
Balance Sheet as on 31st Mar, 2013

Liabilities	Amount (Rs.)	Assets	Amount (Rs.)	Amount (Rs.)
Sundry Creditors	20,000	Cash at Bank		8000
Bills Payable	5,000	Debtors	16000
General Reserve	6,000	Less : R.D.D.	(1000)	15,000
Rahul’s Loan A/c	16,000	Stock		20,000
Capital Account		Plant and Machinery		30,000
Rahul	25,000	Furniture		6,000
Rohit	10,000	Ramesh’s Capital Account		3,000
	82000			82000

The firm was dissolved on the above date :

(1) Assets realised as follows:

Debtors Rs. 9,000, Plant and Machinery Rs. 26,000, Stock Rs. 14,000, and Furniture Rs. 3,000.

(2) The creditors were paid Rs. 18,000, in full settlement and the bills payable were paid in full.

(3) The realisation expenses amounted to Rs. 3,000.

(4) Ramesh became insolvent and was able to bring in only Rs. 1,800 from his private estate.

Prepare :

(1) Realisation account

(2) Partner’s capital account and

(3) Bank account.

Jay , Ajay and Vijay were partners sharing profits and losses in the proportion of 2 : 2 : 1 . Following is their balance sheet as on 31.03.2013.

Balance sheet as on 31st March 2013

Liabilities	Amount (₹)	Assets		Amount (₹)
Capital A/c		Machinery		50000
Jay	60000	Stock		20000
Ajay	20000	Debtors	55000	52000
Vijay	20000	Less : R.D.D.	(3000)	52000
General Reserve	6000	Investments		24000
Creditors	40000	Profit and loss A/c		18000
Jay's Loan A/c	8000	Bank		4000
Bills Payable	14000
	168000			168000

On the above date the partners decided to dissolve the firm.

(1) Assets were realised as :

Machinery ₹45000 ; Stock ₹ 18000;

Investment ₹ 21000 ; Debtors ₹ 45000

(2) Dissolution expenses were ₹ 3000.

(3) Goodwill of the firm realised ₹ 24000.

Prepare : (1) Realisation Account (2) Partner's Capital Account (3) Bank Account.

Answer the following question:
State any two situations when a partnership firm can be compulsorily dissolved.

Partnership is completely dissolved when the partners of the firm become _________.

Realisation account is __________ on realisation of assets.

Give the word/term/phrase which can substitute the following statement.

Debit balance of Realisation account.

Give the word/term/phrase which can substitute the following statement.

An account opened to find out the Profit or Loss on realisation of Assets and settlement of Liabilities.

Give the word/term/phrase which can substitute the following statement.

Credit balance of realisation Account.

State whether the following statement is True or False with reason.

The firm must be dissolved on the retirement of a partner.

Vinod, Vijay, and Vishal are partners in a firm, sharing profit & Losses in the ratio 3:2:1. Vishal becomes insolvent and his capital deficiency is ₹ 6,000. Distribute the capital deficiency among the solvent partners.

Complete the table.

1)	Debit side total of Realisaton A/c	Credit side total of Realisation A/c	Loss on Realisations
1)	₹ 20,000	?	₹ 4,000
2)	Creditors	Bills Payable	Third-Party Liabilities
2)	₹16,000	₹12,000	?
3)	Credit side total Profit ion of Realisaton A/c	Debit side total of Realisation A/c	Profit of realisation
3)	₹ 21,000	₹16,000	?
4)	Debit side total of Capital A/c	Credit side total of Capital A/c	Cash brought by partner
4)	₹ 51,000	?	₹ 17,000
5)	capital deficiency	Cash brought by Insolvent Partner	Insolvent loss
5)	?	₹ 7,000	₹ 21,000

Shailesh and Shashank were partners sharing Profits and Losses in the ratio of 3:2. Their Balance Sheet as on 31^st March 2019 was as follows.

Balance Sheets as on 31st December 2019.
Liabilities	Amount ₹	Assets	Amount ₹
Capital Account :		Building	7000
Shailesh	10,000	Plant	9,000
Shashank	6,000	Debtors	14,000
Current Account :		Stock	5,000
Shailesh	3,000	Bank	6,000
Shashank	2,000
Creditors	17,400
Bills payable	2,600
	41,000		41,000

The firm was dissolved on the above date and the assets realised as under.

1. Plant ₹ 8,000, Building ₹ 6,000, Stock ₹ 4,000 and Debtors ₹ 12,000.

2. Shailesh agreed to pay of the Bills Payable.

3. Creditors were paid in full.

4. Dissolution expenses were ₹ 1,400

Prepare Realisation A/c, Partners Current A/c, Partners Capital A/c, and Bank A/c

Kalpana and Bela were partners sharing profits and losses in the ratio of 3: 2. Their Balance Sheet as on 31st March, 2019 was as follows:

Balance Sheet as on 31st March 2019
Liabilities	Amount (₹)	Assets	Amount (₹)
Capital Accounts:		Building	14,000
Kalpana	20,000	Plant	18,000
Bela	12,000	Debtors	28,000
Current Accounts:		Stock	10,000
Kalpana	6,000	Bank	12,000
Bela	4,000
Creditors	34,800
Bills Payable	5,200
	82,000		82,000

The firm was dissolved on the above date and the assets realised as under:

(1) Plant ₹ 16,000, Building ₹ 12,000, Stock ₹ 8,000 and Debtors ₹ 24,000.

(2) Kalpana agreed to pay off the Bill Payable.

(3) Creditors were paid in full.

(4) Dissolution expenses were ₹ 2,800.

Prepare: Realisation A/c, Partner's current A/c, Partner's Capital A/c and Bank A/c.

A firm is dissolved with the consent of all the partners or in accordance with a contract between the partners is known as ______

On the basis of the following data, final payment to a partner on the firm's dissolution will be: Credit balance of the capital account of the partner was ₹ 50,000. Share of loss on realisation was ₹ 10,000. The firm’s liability taken over by him was for ₹ 8,000.

The account which is prepared on dissolution of a partnership firm:

On dissolution of a firm, a liability taken over by a partner is credited to ______.

Pick the odd one out: (In reference to Dissolution partnership firm)

What Journal Entry will be passed on dissolution of partnership firm, when creditors of ₹ 40,000 accepted investments of ₹ 50,000 (Book value)?

Which of the following is the characteristic of a partnership firm?

Asha, Usha and Nisha are partners in the firm sharing profits and losses in the ratio of 3 : 2 : 1 respectively. On 31st March, 2019 they decided to dissolve the firm when their Balance Sheet was as under:

Balance Sheet as on 31st March, 2019
Liabilities	Amount (₹)	Assets	Amount (₹)
Creditors	28,800	Building	1,02,000
Bills Payable	21,600	Machinery	73,000
Capitol Accounts:		Motor Car	1,67,600
Asha	2,27,160	Goodwill	45,600
Usha	1,44,000	Investment	62,400
Nisha	1,08,000	Debtors	30,600
		Stock	45,000
		Bank	3,360
	5,29,560		5,29,560

The firm was dissolved on the above date and the assets realised as under:

Asha agreed to take over the Building at ₹ 1,23,600
Usha took over Goodwill Stock and Debtors at book value and agreed to pay Creditors and Bills payable.
Motor car and Machinery realised at ₹ 1,51,080 and ₹ 31,680 respectively.
Investment were taken by Nisha at an agreed value of ₹ 55,440.
Realisation Expenses amounted to ₹ 6,800.

Prepare:

Realisation Account
Partners' Capital Account
Bank Account

Mandar and Prasad are partners in a firm sharing profit & losses in the ratio of 3 : 2. The following is their balance sheet as on 31st March, 2019.

Liabilities	Amount (₹)	Assets		Amount (₹)
Capital A/c:		Building		72,000
Mandar	95,000	Plant & Machinery		60,000
Prasad	1,00,000	Furniture		10,000
Creditors	4,000	Debtors	42,000	40,000
Bills Payable	3,000	Less: RDD	2,000	40,000
		Bank		20000
	2,02,000			2,02,000

On 1^st April, 2019 Shubham is admitted for 1/2 share on the following terms:

He paid ₹ 1,00,000 as Capital ₹ 40,000 as his shares of goodwill by RTGS.
Plant & Machinery revalued at ₹ 48,000.
Building is taken over by Mandar at ₹ 100,000.
Reserve for Doubtful Debts (RDD) to be increased upto ₹ 4,000.
The old partners decided to retain half of the amount of goodwill in the business.
The old partners decided to sacrifice equally.

Prepare Partners' Capital Account Only and show your working clearly.

Total assets of a partnership firm, which was dissolved were ₹ 30,00,000 and its total liabilities were ₹ 6,00,000. Assets were realised at 80% and liabilities were settled at 5% less. If dissolution expenses were ₹ 30,000 the profit or loss on dissolution was ______.

Pass the necessary journal entries for the following transactions on the dissolution of the partnership firm of Tanay and Mehak after various assets (other than cash) and external liabilities have been transferred to Realisation Account:

Creditors of ₹ 60,000 accepted stock valued at ₹ 59,000 in full settlement of their claim.
Tanay agreed to pay off his wife's loan of ₹ 12,000.
The firm had a debit balance of ₹ 18,000 in the profit and loss account on the date of dissolution.
An unrecorded liability of ₹ 20,000 was paid by partner, Mehak, at a discount of 10%.
Tanay's loan of ₹ 4,000 was paid through a cheque.
Expenses on dissolution amounted to ₹ 11,000 which were paid by Mehak.

Aditya, Abhinav and Ankit were partners in a firm sharing profits in the ratio of 4: 3 : 3. On 31^st March, 2022, the firm was dissolved. Aditya was appointed to complete the dissolution process for which he was allowed a remuneration of ₹ 42,000. Aditya also agreed to bear dissolution expenses. Actual expenses on dissolution amounted to ₹ 33,000 which were paid by Aditya. Aditya’s Capital Account will be credited by:

Pass necessary Journal Entries for the following transactions on the dissolution of a partnership firm of Mita and Sonu on 31^st March, 2022 after the various assets other than cash and third party liabilities have been transferred to the Realisation Account.

Creditors of ₹ 90,000 took over Land and Building of ₹ 2,00,000 in full settlement of their claim.
Sonu took over debtors amounting to ₹ 50,000 at ₹ 40,000.
Realisation expenses ₹ 1,800 were paid by Sonu.
A machine which was not recorded in the books was taken over by Mita at ₹ 11,000 while its expected market value was ₹ 15,000.
Sortu agreed to pay off his wife's loan of ₹ 20,000.
Profit on dissolution amounted at ₹ 50,000.

Amul and Anand are partners in the firm sharing profits and losses in the ratio of 4 : 1. They decided to dissolve the partnership on 31st March, 2023 on which date their Balance Sheet stood as follows:

Balance Sheet as on 31st March, 2023
Liabilities	Amount (₹)	Amount (₹)	Assets	Amount (₹)	Amount (₹)
Capital:			Furniture		19,600
Amul	1,26,000	1,82,000	Plant		91,000
Anand	56,000	1,82,000	Trademark		11,200
Sundry Creditors		49,000	Sundry Debtors	67,200
Bank Loan		21 ,000	Less: R.D.D.	4,200	63,000
			Stock		42,000
			Cash in Hand		14,000
			Advertisement Suspense		11,200
		2,52,000			2,52,000

Additional Information:

(1) Plant and Stock taken over by Amul at ₹ 1,09,200 and ₹ 30,800 respectively.

(2) Debtors realised 90% of the book value and Trademark at ₹ 7,000 and Goodwill was realised for ₹ 37,800.

(3) Unrecorded assets estimated ₹ 6,300 was sold for ₹ 2,100.

( 4) ₹ 1,400 Discount were allowed by creditors while paying their claim.

(5) The Realisation expenses amounted to ₹ 4,900.

You are required to prepare Realisation A/c, Cash A/c and Partner's Capital A/cs.

Lal, Bal and Pal were partners sharing profits and losses in the ratio of 2 : 2 : 1. The following is the Balance Sheet as on 31st March, 2020.

Balance sheet as on 31st March 2020
Liabilities	Amount (₹)	Assets		Amount (₹)
Capital A/c		Machinery		50,000
Lal	60,000	Investments		24,000
Bal	20,000	Debtors	55,000	52,000
Pal	20,000	Less: R.D.D.	(3,000)	52,000
General Reserve	6,000	Stock		20,000
Creditors	48,000	Profit and loss A/c		18,000
Bills Payable	14,000	Bank		4,000
	168000			168000

On the above date the partners decided to dissolve the firm.

(1) Assets were realised as:

Machinery	₹ 45000
Stock	₹ 18000
Investment	₹ 21000
Debtors	₹ 45000

(2) Dissolution expenses were ₹ 3000.

(3) Goodwill of the firm realised ₹ 24000.

Prepare:

Realisation Account
Partner's Capital Account
Bank Account.

A firm having a debtor of ₹ 30,000 from whom the amount was due on 30^th June, 2023, gets dissolved on 31st March, 2023. The debtor cleared his dues on the date of dissolution of the firm at a discount of 4% per annum.

Give the journal entry passed by the firm to realise the payment from the debtor.

Mention the liability of a partnership firm which is not shown in its balance sheet but is paid off at the time of the dissolution of the firm.

A, B, and C were partners sharing profits and losses in the proportion of 2:2:1. Following is their balance sheet as on 31st March, 2013.

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A, B, and C were partners sharing profits and losses in the proportion of 2:2:1. Following is their balance sheet as on 31st March, 2013.

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