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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.

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प्रश्न

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.

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उत्तर

                            Realisation Account

Dr.

 

Cr.

Particulars

Amount

Rs

Particulars

Amount

Rs

To Plant  

2,20,000

By Creditors

75,000

To Investments

70,000

By Bills Payable

40,000

To Stock                                           

50,000

By Outstanding Salary

35,000

To Debtors

60,000

By Bank A/c

 

To Bank

 

Plant                                85,000

 

Creditors                            75,000

 

Stock                               33,000

 

Bills Payable                      40,000

 

Debtors                           47,000

 

Outstanding Salary            35,000

1,50,000

Investments                    66,500

2,31,500

To Bank

 

By Partner’s Capital A/cs-Loss

 

Outstanding Bill for Repair    7,500

 

Srijan                               81,030

 

Dishonoured of                      

Discounted Bill                     15,000

 

22,500

Raman                              81,030

 

To Srijan’s Capital A/c-Commission (2,31,500*.05)

11,575

Manan                             40,515

2,02,575

 

5,84,075

 

5,84,075

 

 

 

 

           

Partners' Capital Account

 
 Particulars Srijan Raman Manan Particulars Srijan Raman Manan
To Balance b/d ---------- ---------- 10,000 By Balance b/d 2,00,000 1,50,000 ---------
To Profit &Loss A/c   32,000 32,000 16,000 By Realisation  A/c-Commission 11,575    
To RealisationA/c-Loss 

81,030

81,030

40,151      
To Bank A/c

98,545

36,970 ---------- By Bank A/c ---------- ---------- 66,515
  2,11,575 1,50,000 66,515   2,11,575 1,50,000 66,515
               

                                  Bank Account

Dr.

 

Cr.

Particulars

Amount

Rs

Particulars

Amount

Rs

Balance b/d

10,000

To Realisation A/c-Recorded liabilities repaid

1,50,000

To Realisation A/c-Assets realised

2,31,500

To Realisation A/c-Unrecorded liabilities repaid

22,500

To Manan’s Capital A/c

66,515

To Srijan’s Capital A/c

98,545

 

 

To Raman’s Capital A/c

36,970

 

 

 

 

 

 

 

 

 

 

 

 

 

3,08,015

 

3,08,015

 

 

 

 

         
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  क्या इस प्रश्न या उत्तर में कोई त्रुटि है?
2017-2018 (March) Foreign Set 2

संबंधित प्रश्न

Mr. Aaba and Mr. Baba are equal partners whose Balance Sheet as on 31 st March, 2012 was as under:

                                                               Balance Sheet as on

                                                                  31st March, 2012

Liabilities Amount(Rs.) Assets Amount(Rs.)
Sundry Creditors 16000 Cash in hand 500

Capital A/c

              Aaba

              Baba

 

2000

2000

Stock 4500
    Debtors 4000
    Plant and machinery 5000
    Furniture 2000
    Land and Building 4000
  20000   20000

 

Due to weak financial position of the partners the firm is dissolved.

Aaba and Baba are not able to contribute anything from their private estate, hence they are declared insolvent.

The assets are realised as follows :-

Stock Rs. 3,000, Plant and Machinery Rs. 3,000, Furniture Rs. 1,000, Land and Building Rs. 2,000 and Debtors Rs. 1,000 only.

Realisation expenses amounted to Rs. 500.

You are required to prepare necessary Ledger Accounts to close the books of the firm.


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.

 

 


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 Rs Assets Rs

Creditors

Investment Fluctuation

Fund

Capitals

Prachi

Ritika

 

 

2,00,000

30,000

30,000

40,000

Furniture

Stock

Investments

Cash

Ishita's Capital

 

37,000

5,500

15,000

9,000

18,000

 

  84,500   84,500

Expenses incurred on a dissolution of a partnership firm.

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

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


Answer in one Sentence only.
Why is Realisation Account opened?


Write the word / term / phrase, which can substitute the following statement.
Conversion of assets into cash on dissolution of firm.


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

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


Deficiency of Insolvent partner will be suffered by solvent partners in their ___________ ratio.


If the number of partners in a firm falls below two, the firm stands_________.


Select the most appropriate alternative from those given below :

Realisation Account is __________on realisation of assets.


(When all partners become insolvent)

Shiv, Sadashiv and Sadanand are Partners in a firm sharing Profit and Losses equally whose Balance-sheet as on 31st December, 2011 stood as follows:

      Balance Sheet as on 31st December, 2011

Liabilities Amount (Rs) Assets Amount (Rs)
Capital Accounts   Sadanand’s Capital A/c 2000
Shiv 6000 Buildings 18300
Sadashiv 4000

Machinery

12700
Parvati’s Loan 10000

Debtors

9100
Sundry Creditors 30000

Bank

7900
  50000   50000

Shiv, Sadashiv and Sadanand were declared bankrupt and hence the firm was dissolved as on that date:

(i) The sundry Assets realised as follows:

     Building Rs 10,900, Machinery Rs 8,200, Debtors Rs 6,800.

(ii) Realisation expenses amounted to Rs 1,300.

(iii) Sadanand was unable to contribute anything-

Whereas Rs 1,100 and Rs 900 were recovered from the realisation of private estate of Shiv and Sadashiv respectively.

You are required to close the books of the firm.


Ganga, Yamuna and Godavari are in Partnership sharing profits and losses equally. Their Balance sheet as on 31st December, 2011 was as follows:

           Balance Sheet as on 31st December, 2011

Liabilities Amount (Rs) Assets Amount (Rs)
Capital Accounts   Currnet Accounts  
Ganga 25000 Yamuna 20000
Yamuna 10000 Godavari 4000
Godavari 5000 Premises 17200
Ganga’s Currnet A/c 3000 Machinery 10800
Sundry Creditors 4000 Debtors 9600
Bank loan 3000 Cash 6400
  50000   50000

Godavari was declared insolvent and hence the firm was dissolved as on that date. Premises was sold at Rs 14,800, Machinery realised Rs 6,400. Bad debts and discount allowed to Debtors amounted to Rs 1,600. Sundry creditors agreed to receive 80 paise in a rupee (Rs) in full satisfaction of their claim. Bank Loan was settled at 60% of book value. During the course of dissolution a liability under an action for damages was settled for Rs 1,400 against Rs 2,100 provided in the books of the firm. The expenses of realisation amounted to Rs 900. Goodwill contributed Rs 1,900 from her private Property.

Prepare necessary ledger accounts in the books of the firm.


What is a Realisation Account?


Land and Building (book value) ₹ 1,60,000 sold for ₹ 3,00,000 through a broker who charged 2% commission on the deal. Journalise the transaction, at the time of dissolution of the firm.


Realisation account is __________ on realisation of assets.


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

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


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.


Realisation profit of a firm is ₹ 6,000, partners share Profit & Loss in the ratio of 3: 2: 1. Calculate the amount of Realisation Profit to be credited to Partners Capital A/c.


Leela, Manda, and Kunda are partners in the firm ‘Janki Stores’ sharing Profits and Losses in the ratio of 3:2:1 respectively. On 31st March 2018, they decided to dissolve the firm when their Balance Sheet was as under.

Balance Sheets as on 31st March 2018.
Liabilities Amount (₹) Assets Amount (₹)
Creditors 28,800 Building 1,02,000
Bills Payable 21,600 Machinery 73,000
Capital A/c’s   Motor Car 1,67,600
Leela 2,27,160 Goodwill 45,600
Manda 1,44,000 Investment 62,400
Kunda 1,08,000 Debtors 30,600
    Stock 45,000
    Bank 3,360
  5,29,560   5,29,560

Leela agreed to take over the Building at ₹ 1,23,600. Manda took over Goodwill, Stock, and Debtors at Book values and agreed to pay Creditors and Bills payable. Motor Car and Machinery realised ₹ 1,51,080 and ₹ 31,680 respectively. Investments were taken by Kunda at an agreed value of ₹ 55,440. Realisation expenses amounted to ₹ 6,800.

Pass necessary entries in the books of ‘Janki Stores.’


Seeta and Geeta are partners in the firm sharing Profits and Losses in the ratio of 4:1. They decided to dissolve the partnership on 31st March 2020 on which date their Balance Sheet stood as follows.

Balance Sheets as on 31st March 2020
Liabilities Amount (₹) Assets Amount (₹) Amount (₹)
Capital:   Furniture   14,000
Seeta 90,000 Plant   65,000
Geeta 40,000 Trademark   8,000
Sundry Creditors 35,000 Sundry Debtors 48,000 45,000
Bank Loan 15,000 Less: R.D.D 3,000
    Stock   30,000
    Cash in hand   10,000
    Advertisement Suspense   8,000
  1,80,000     1,80,000

Additional Information:

  1. Plant and Stock taken over by Seeta ₹ 78,000, and ₹ 22,000 respectively.
  2. Debtors Realised 90% of the Book Value and Trademark at ₹ 5,000. and Goodwill was realised for ₹ 7,000.
  3. Unrecorded assets estimated ₹ 4,500 was sold for ₹ 1,500.
  4. ₹ 1,000 Discount were allowed by creditors while paying their claim.
  5. The Realisation Expenses amounted to ₹ 3,500.

You are required to prepare Realisation A/c, Cash A/c, and Partners Capital A/c.


Sangeeta, Anita, and Smita were in partnership sharing Profits and Losses in the ratio 2: 2: 1. Their Balance Sheet as on 31st March 2019 was as under:

Balance Sheets as on 31st March, 2019
Liabilities Amount (₹) Assets Amount (₹)
Capital:   Land 2,10,000
Sangeeta 60,000 Plant 20,000
Anita 40,000 Goodwill 15,000
Smita 30,000 Debtors 1,25,000
Sangeeta’s Loan A/c 1,20,000 Loans and Advances 15,000
Sundry Creditors 1,20,000 Bank 5,000
Bills Payable 20,000    
  3,90,000   3,90,000

They decided to dissolve the firm as follows:

1. Assets realised as; Land recovered ₹ 1,80,000; Goodwill for ₹ 75,000; Loans and Advances realised ₹ 12,000; 10% of the Debts proved bad;

2. Sangeeta took Plant at book value.

3. Creditors and Bills payable paid at 5% discount.

4. Sangeeta’s Loan was discharged along with ₹ 6,000 as Interest.

5. There was a contingent liability in respect of bills of ₹ 1,00,000 which was under discount. Out of them, a holder of one bill of ₹ 20,000 became insolvent

Show Realisation Account, Partners Capital Account, and Bank Account.


Anita and Binita are partners in a firm. Anita had taken a loan of ₹ 15,000 from the firm. How will Anita’s loan be closed in the event of dissolution of the firm?


Consider the following statements

Statement 1: "The firm is dissolved automatically, on the retirement all partners." 

Statement 2: A firm dissolves on the retirement of a partner.


A partnership firm is compulsorily dissolved:


Which of the following does not result into reconstitution of a partnership firm?


At the time of the firm's dissolution, the balance of General Reserve shown in the Balance Sheet is credited to ______.


On dissolution of the firm, ______ will be debited to the Realisation Account.


A firm consisting of partners Mukund, Sachin and Yuvraj decided to dissolve the partnership They decided to take over certain assets and liabilities and continue the business separately. The Balance Sheet was as under.

Balance Sheet as on 31st March, 2020
Liabilities Amount
(₹)
Assets   Amount
(₹)
Capital A/c:     Furniture   2,000
 Mukund 55,000 89,000 Sundry Assets   34,000
 Sachin  20,000 Debtors 48,400 46,000
 Yuvraj 14,000 Less: RDD 2,400
Creditors   12,000 Stock   15,600
Loan   3,000 Cash   6,400
    1,04,000     1,04000

It was agreed as under:

  1. Mukund is to take Furniture at ₹ 1,600 and the Debtors amounting to ₹ 40,000 at ₹ 34,400 only. He accepted the Creditors on ₹ 12,000 at that figure.
  2. Sachin is to take over all Stock at ₹ 14,000 and Sundry Assets worth ₹ 16,000 at ₹ 14,400 only.
  3. Yuvraj is to take over the remaining Sundry Assets at ₹ 16,000 and assume the responsibility for the discharge of the loan together will accrued interest on a loan of ₹ 60. which has not been recorded in accounts.
  4. The dissolution expenses were ₹ 540.
  5. The remaining debtors realised only ₹ 4,200.
  6. The necessary adjustments were made by partners to settle their accounts.

Prepare Realisation Account, Partners Capital Account, and Cash Account, after giving effect to the above adjustments.


A, B and C are in partnership business. A used ₹ 2,00,000 belonging to the firm without the information to other partners and made a profit of ₹ 35,000 by using this amount. Which decision should be taken by the firm to rectify this situation?


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:

  1. 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.
  2. Deferred Advertisement Expenditure A/c appeared in the books at ₹ 28,000.
  3. 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.
  4. 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.


Read the following hypothetical situation and answer question on the basis of the same.

Nitya, Shreya and Ishita are partners in a firm. They share profit in the ratio of 5 : 3 : 2. Their fixed capital 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:


Read the following hypothetical situation and answer question on the basis of the same.

Nitya, Shreya and Ishita are partners in a firm. They share profit in the ratio of 5 : 3 : 2. Their fixed capital 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 partnership deed provide that interest on capital will be allowed @10% p.a. The amount of interest on Ishita's capital will be:


A firm having a debtor of ₹ 30,000 from whom the amount was due on 30th 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.


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