Prachi, Ritika and Ishita Were Partners in a Firm Sharing Profits and Losses in the Ratio of 5 : 3: 2. the Court Ordered for the Dissolution of Their Partnership Firm on 31st March 2012. Prachi Was Deputed to Realise the Assets and Pay the Liabilities. She Was Aid Rs 1,000 as the Commission for Her Services. the Financial Position of the Firm Was as Follows:

प्रश्न

Prachi, Ritika and Ishita were partners in a firm sharing profits and losses in the ratio of 5 : 3: 2. In spite of repeated reminders by the authorities, they kept dumping hazardous material into a nearby river. The court ordered for the dissolution of their partnership firm on 31st March 2012. Prachi was deputed to realise the assets and pay the liabilities. She was aid Rs 1,000 as the commission for her services. The financial position of the firm was as follows:

Liabilities

Assets

Creditors

Investment Fluctuation

Fund

Capitals

Prachi

Ritika

2,00,000

30,000

40,000

Furniture

Stock

Investments

Cash

Ishita's Capital

37,000

5,500

15,000

9,000

18,000

84,500

उत्तर

Realisation Account
Dr.			Cr.
Particulars	Rs	Particulars	Rs
To Furniture A/c	37,000	By Investment Fluctuation Funds A/c	4,500
To Stock A/c	5,500	By Creditors A/c	10,000
To Investments A/c	15,000	By Parchi Capital A/c (Investments taken over)	12,500
To Cash A/c (Employee Compensation Paid)	8,000	By Cash A/c (Stock and Furniture taken over)	41,500
To Cash A/c (Creditors Paid)	10,000	Ritika's Capital A/c (Old Furniture Taken over)	3,000
To Prachi's Capital A/c (commission for services)	1,000	By Loss on Realisation transferred to:
Cash A/c (Realisation Expenses)	1,000	Prachi's Capital A/c 3,000 Ritika's Capital A/c 1,800 Ishita's Capital A/c 1,200	6,000
	77,500		77,500

Partners’ Capital Account
Dr.							Cr.
Particulars	Prachi	Ritika	Ishita	Particulars	Prachi	Ritika	Ishita
To Balance b/d			18,000	By Balance b/d	40,000	30,000
To Realistion A/c	12,500	3,000		By Realisation A/c	1,000
To Realisation A/c (Loss)	3,000	1,800	1,200	By Cash A/c (Balancing Figure)			19,200
To Cash A/c (Balancing Figure)	25,500	25,200
	41,000	30,000	19,200		41,000	30,000	19,200

Cash Account
Dr.			Cr.
Particulars	Rs	Particulars	Rs
To Balance b/d	9,000	By Realisation A/c (Employee Compensation paid)	8,000
To Realisation A/c (Stock and Furniture Realised)	41,500	By Realisation A/c (Creditors paid)	10,000
To Ishita's Capital A/c	19,200	By Realisation A/c (Commission for Services	1,000
		By Prachi's Capital A/c	25,500
		By Ritika's Capital A/c	25,200
	69,700		69,700

The following are the values involved in the scenario depicted in the question.

Making people aware of the water pollution.
Environmental degradation
Violation of rules and regulations and overlooking the repeated notifications by the authorities.
Violating the social values

shaalaa.com

Concept of Dissolution of Partnership Firm

क्या इस प्रश्न या उत्तर में कोई त्रुटि है?

Q 18.2 Q 18.1 Q 19

2012-2013 (March) Delhi Set 1

APPEARS IN

2012-2013 (March) Delhi Set 1 (with solutions)

Q 18.2 | 8 marks

2012-2013 (March) Delhi Set 2 (with solutions)

Q 17.2 | 8 marks

संबंधित 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.

E and F were partners in a firm sharing profits in the ratio of 7:3. On 28-2-2016 the firm was dissolved. After transferring assets (other than cash) and outsider's liabilities to realization account you are given the following information:

(a) A creditor for Rs 3, 00,000 accepted building valued Rs 3, 75,000 and paid the firm Rs 75,000.

(b) A second creditor for Rs 93,000 accepted stock valued at Rs 90,000 in full settlement of his claim.

(c) A third creditor amounting to Rs 60,000 accepted Rs 37,000 in cash and investments of the book value of Rs 40,000 in full settlement of his claim.

(d) Loss on dissolution was Rs 7,000.

Pass necessary journal entries for the above transactions in the books of the firm assuming that all payments were made by cheque.

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.

If any unrecorded liability is paid on dissolution of the firm ___________ is debited.

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

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

Winding up of partnership business.

Akbar and Birbal were partners in a firm sharing profits and losses in the ratio of 3 : 2 respectively. Their balance sheet as on 31st march , 2013 was as follows :

Balance Sheet as on 31st March, 2013

Liabilities	Amount	Assets		Amount
Capital A/c’s:		Plant and Machinery		40,000
Akbar	60,000	Furniture		12,000
Birbal	40,000	Sundry debtors	61,000	60,000
General reserve	20,000	Less: R.D.D.	1,000	60,000
Sundry creditors	39,700	Stock		28,300
		Bank		19,400
	1,59,700			1,59,700

On the above date, the firm was dissolved and the assets realised were as follows :
Plant and machinery ₹ 30,000.

Sundry debtors ₹ 58,000.
Furniture was taken over by Akbar for ₹ 10,000 and stock by Birbal for 27,000.
Sundry creditors were paid ₹ 38,000 in full settlement of their claim.
Realisation expenses amounted to ₹ 2,000.
Prepare :

(1) Realisation Account
(2) Partners’ Capital Accounts
(3) Bank Account