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प्रश्न
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.
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उत्तर
Journal
| Date | Particulars | L.F. | Dr. (Rs) | Cr. (Rs) |
|
(a)
(b)
(c)
(d)
|
Bank A/c Dr To Realisation A/c (Being Raman accepted building valued at Rs.8,00,000 and paid the balance to the firm)
No Entry
Realisation A/c Dr To Bank A/c (Being Ranjan accepted investments at Rs.45,000 and paid Rs.43,000 through bank draft in full settlement of his claim)
Realisation Capital A/c Dr To P's A/c (Being P appointed for dissolution work allowed Rs.2,000 to him; actual expenses of Rs.2,400 were paid by P) |
3,80,000
43,000
4,400
|
3,80,000
43,000
4,400
|
APPEARS IN
संबंधित प्रश्न
Dissolution expenses are credited to ______.
If an asset is taken over by partner from firm his capital account will be ___________.
Distinguish between 'Dissolution of Partnership' and 'Dissolution of Partnership Firm on the basis of 'Economic Relationship'.
Prem and Suresh were partners in a firm sharing profits in the ratio of 7: 8. On 1.4.2015 their firm was dissolved. After transferring assets (other than cash) and outsider's liabilities to realisation account, you given the following information :
(a) Raman, a creditor of Rs 4, 00,000 accepted land valued at Rs 7,00,000 and paid Rs 3,00,000 to the firm.
(b) Gopal, a second creditor for Rs 1,05,000 accepted Rs 90,000 in cash and investments of Rs 14,000 in full settlement of his account.
(c) Hari, a third creditor amounting to Rs 75,000 accepted stock of the book value of Rs 60,000 for Rs 45,000 and the balance was paid to him by cheque.
(d) Loss on dissolution was Rs 45,000.
Pass necessary journal entries for the above transactions in the books of the firm.
G and H were partners in a firm sharing profits in the ratio of 9: 7. On 1.4.2015 their firm was dissolved. After transferring assets (other than cash) and outsider's liabilities to realisation account you are given the following information :
(a) Mohan, a creditor of Rs 2,30,000 accepted debtors of Rs 2,00,000 at a discount of 10% and the balance was paid to him by cheque.
(b) Sohan, a second creditor for Rs 7,00,000 accepted land of the book value of Rs 10,00,000 at Rs 15,00,000 and paid the balance to the firm by cheque.
(c) Ram, a third creditor for Rs 80,000 took over stock of book value of Rs 40,000 at Rs 30,000 and investments of Rs 48,000 in full settlement of his claim.
(d) Loss on dissolution was Rs 48,000.
Pass necessary journal entries for the above transactions in the books of G and H.
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
Assets and liabilities are transferred to Realisation Account at their ______ value.
| Balance Sheet as on 31st March 2012 | |||
| Liabilities | Amount (Rs) | Assets | Amount (Rs) |
| Sundry Creditors | 15,000 | Cash at bank | 3,000 |
| Uday’s Wife’s Loan | 30,000 | Debtors 67,500 | |
| Capital A/c | (–) R.D.D. 7,500 | 60,000 | |
| Uday | 1,38,000 | Stock | 135000 |
| Prabhakar | 90,000 | Machinery | 45000 |
| Furniture | 30000 | ||
| 2,73,000 | 2,73,000 | ||
The assets were realised as under:
Goodwill Rs. 15,000, Stock Rs. 1,20,000 and Debtors Rs. 54,000.
Machinery was taken over by Prabhakar at Rs. 40,000 and furniture by Uday at book value.
Uday agreed to discharge his wife’s loan.
The creditors were paid at a rebate of Rs. 3,000
The expenses of dissolution amounted to Rs. 6,000
Pass necessary Journal Entries in the books of the firm.
Moli, Bhola and Raj were partners in a firm sharing profits and losses in the ratio of 3 : 3 : 4. Their partnership deed provided for the following :
(i) Interest on capital @ 5% p.a.
(ii) Interest on drawing @ 12% p.a.
(iii) Interest on partners' loan @ 6% p.a.
(iv) Moli was allowed an annual salary of Rs 4,000; Bhola was allowed a commission of 10% of net profit as shown by Profit and Loss Account and Raj was guaranteed a profit of Rs 1,50,000 after making all the adjustments as provided in the partnership agreement.
Their fixed capitals were Moli : Rs 5,00,000; Bhola : Rs 8,00,000 and Raj : Rs 4,00,000. On 1st April, 2016 Bhola extended a loan of Rs 1,00,000 to the firm. The net profit of the firm for the year ended 31st March, 2017 before interest on Bhola's loan was Rs 3,06,000.
Prepare Profit and Loss Appropriation Account of Moli, Bhola and Raj for the year ended 31st March, 2017 and their Current Accounts assuming that Bhola withdrew Rs 5,000 at the end of each month, Moli withdrew Rs 10,000 at the end of each quarter and Raj withdrew Rs 40,000 at the end of each half year.
Answer in one sentence only.
What is a capital deficiency?
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?
Write the word / term / phrase, which can substitute the following statements.
An account opened to find out the Profit or Loss on Sale of Assets and Settlement of Liabilities.
State whether the following statements is True or False.
The firm is dissolved automatically on the retirement of a partner.
State whether the following statement is True or False with reason.
Realisation Loss is not transferred to the insolvent partner’s capital account.
Select the most appropriate alternative from those given below :
All activities of the partnership firm cease (stop) on ____________ of firm.
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.
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.
State whether the following statement is True or False with reason.
A solvent partner having debit balance to his Capital Account does not share the deficiency of insolvent partner Capital Account.
State whether the following statement is True or False with reason.
At the time of dissolution, a loan from the partner will be transferred to Realisation Account.
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.
Ganesh and Kartik are partners sharing Profits and Losses equally. They decided to dissolve the firm on 31st March 2018. Their Balance Sheets was as under :
| Balance Sheets as on 31st March 2018. | |||
| Liabilities | Amount ₹ | Assets | Amount ₹ |
| Creditors | 18,400 | Building | 88,000 |
| Bills Payable | 5,600 | Furniture | 12,000 |
| Reserve Fund | 20,000 | Debtors | 32,000 |
| Capital A/c : | Stock | 24,000 | |
| Ganesh | 40,000 | Bills Receivable | 4,000 |
| Kartik | 80,000 | Cash | 4,000 |
| 1,64,000 | 1,64,000 | ||
Assets were realised as under :
Building ₹82,000, Debtors ₹ 22,000, Stock ₹ 20,000. Bills Receivable ₹ 3,200 and Ganesh agreed to take over Furniture for ₹10,000. Realisation Expenses amounted to ₹ 2,000.
Show Realisation A/c, Partners’ Capital A/c and Cash 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.
The dissolution of partnership may take place in the following ways?
A partnership firm is compulsorily dissolved:
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)?
In the event of dissolution of the firm, the partner’s assets are first used for payment of the following:
Complete the table.
| Debit side total of Realisation A/c |
Credit side total of Realisation A/c |
Loss on Realisation |
| ₹ 20,000 | ? | ₹ 4,000 |
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 ______.
Sun and Kiran are partners sharing profits and losses equally. They decided to dissolve their firm. Assets and Liabilities have been transferred to Realisation Account. Pass necessary Journal entries for the following:
- All partners are agreed that the process of realisation at the time dissolution will be accomplished by Sun for which he will be paid ₹ 10,000 along with the amount of expense which amounted to 2% of total value realised from the Assets on dissolution. Some assets were sold for Cash at a cumulative Value of ₹ 12,00,000 and the remaining were taken over by creditors at a valuation of ₹ 3,00,000.
- Deferred Advertisement Expenditure A/c appeared in the books at ₹ 28,000.
- Out of the Stock of ₹ 1,20,000; Kiran (a partner) took over 1/3 of the stock at a discount of 25% and 50% of remaining stock was took over by a Creditor of ₹ 30,000 in full settlement of his claim. Balance amount of stock realized at ₹ 25,000.
- An outstanding bill for repairs and renewal of ₹ 3,000 was settled through an unrecorded asset which was valued at ₹ 10,000. Balance being settled in Cash.
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 | 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.
Insolvent partner Capital A/c debit side total is ₹ 25,000 and credit side total is ₹ 10,000. Calculate deficiency.
| Nitya, Shreya and Ishita are partners in a firm. They share profits in the ratio of 5 : 3 : 2. Their fixed capitals are ₹ 1,80,000; ₹ 1,60,000 and ₹ 2,00,000 respectively. For the year ending 31st March, 2022, Nitya withdrew ₹ 7,500 at the end of every quarter. |
The average number of months for which interest on drawings will be calculated, will be:
Choose the correct order in which a partnership firm, at the time of its dissolution, will apply the amount realised from the sale of its assets, including any amount contributed by the partners, towards the payment of:
P: Partners' loan
Q: Firm's debts
R: Balance of partners' capital
S: Surplus divided amongst the partners in their profit-sharing ratio
Ira (a partner in a firm) was allowed to retain the whole of the stock as her remuneration for services rendered by her in the course of dissolution of the firm. The value of stock was ₹ 10,000 which had been transferred to the Realisation Account.
Complying with the accounting principle of full disclosure, record the above transaction in the books of the partnership firm at the time of its dissolution.
