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प्रश्न
Write the word / term / phrase, which can substitute the following statement.
Liability likely to arise in future on happening of certain events.
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उत्तर
Liability likely to arise in future on happening of certain events. - Contingent Liabilities
Explanation: Liability likely to arise in future on happening of certain events is known as contingent liabilities. These are termed as contingent, as their occurrence is dependent upon the happening of a future event, which may or may not happen (i.e. it is uncertain). Therefore, these are not shown in a company’s Balance Sheet.
संबंधित प्रश्न
An account opened to find out the profit or loss on sale of assets and settlement of liabilities.
Distinguish between 'Dissolution of Partnership' and 'Dissolution of Partnership Firm on the basis of 'Economic Relationship'.
Lal and Pal were partners in a firm sharing profits in the ratio of 3: 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) A creditor of Rs.3,60,000 accepted machinery valued at Rs.5,00,000 and paid to the firm Rs.1,40,000.
(b) A Second creditor for Rs.50,000 accepted stock at Rs.45,000 in full settlement of his claim.
(c) A third creditor amounting to Rs.90,000 accepted Rs.45,000 in cash and investments worth Rs.43,000 in full settlement of his claim.
(d) Loss on dissolution was Rs.15,000.
Pass necessary journal entries for the above transactions in the books of firm assuming that all payments were made by cheque.
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.
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.
Pass necessary journal entries on the dissolution of a partnership firm in the following cases :
1) Expenses of dissolution Rs 500 were paid by John, a partner.
2) Joney, a partner, agreed to bear the dissolution expenses for a commission of 750. Actual dissolution expenses 650 were paid by Joney
3) Bony, partner agreed to look after the dissolution work for a remuneration of Rs 3,700. He also agreed to bear the dissolution expenses. Actual dissolution expenses Rs 4,200 were paid by Bony from the firm’s cash.
4) Sony, a partner, was appointed to look after the dissolution work for a remuneration of Rs 10,000. Sony agreed to bear the dissolution expenses. Sony took away stock worth Rs 10,000 as his remuneration. The stock had already been transferred to realisation account.
5) Vikky, a partner, agreed to look after the dissolution work for a remuneration of Rs 12,000. Vikky also agreed to bear the dissolution expenses. Actual dissolution expenses Rs 12,500 were paid by another partner, Clive, on behalf of Vikky.
6) Dissolution expenses were Rs 5,000
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 |
Assets and liabilities are transferred to Realisation Account at their ______ value.
Devendra and Ganesh were partners sharing profits and losses in the ratio of 3: 2. They dissolved the partnership firm on 31st March 2013 when their position was as follows:
The assets realised as follows:
| Balance Sheet as on 31.03.2013 | |||
| Liabilities | Amount Rs | Assets | Amount Rs. |
| Sundry Creditor | 12,500 | Debtors 56,250 | |
| Bank Overdraft | 10,000 | Less: R.D.D. 6,250 | 50000 |
| Reserve Fund | 15,000 | Stock | 112500 |
| Capital Accounts: | Furniture | 25000 | |
| Devendra 1,15,000 | Motor Car | 37500 | |
| Ganesh 75,000 | Cash in hand | 2500 | |
| 227500 | 227500 | ||
(1) Debtors Rs. 45,000, stock Rs. 1,00,000 and goodwill Rs. 12,500
(2) The motor car was taken over by Devendra for Rs. 35,000 and furniture by Ganesh for Rs. 30,000.
(3) The creditors were paid Rs. 11,250 in full settlement.
(4) The realisation expenses were Rs. 5,000.
Pass necessary journal entries in the books of the firm.
Answer in one sentence only.
Which account is debited on repayment of Partner’s Loan?
Answer in one sentence only.
Which account is debited on payment of dissolution expenses?
State whether the following statements is True or False.
A Solvent partner having debit balance to his Capital Account does not share the deficiency of Insolvent Partner’s Capital Account.
State whether the following statement is True or False with reason.
Realisation Loss is not transferred to the insolvent partner’s capital account.
Deficiency of Insolvent partner will be suffered by solvent partners in their ___________ ratio.
Select the most appropriate alternative from those given below :
Realisation Account is __________on realisation of assets.
Sushil and Sumit were in partnership sharing profits and losses in the proportion of 3/5 and 2/5 respectively. On 31st March, 2005 they decide to dissolve the firm when their Balance Sheet was as under:
Balance Sheet as on 31st 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.
Ganesh and Chandan were partners sharing profits and losses in the proportion of 3:2. They dissolve the partnership firm on 31st March, 2011 when their position was as follows:
Balance Sheet as on 31st March, 2011
| Liabilities | Amount (Rs) |
Assets | Amount (Rs) | |
| Sundry Creditors | 25000 | Debtors | 112500 | 100000 |
| Bank overdraft | 20000 | Less : R.D.D | 12500 | |
| Reserve Fund | 30000 | Stock | 225000 | |
| Capital Accounts: | Furniture | 50000 | ||
| Ganesh | 230000 | Motor Car | 75000 | |
| Chandan | 150000 | Cash in hand | 5000 | |
| 455000 | 455000 | |||
The Assets realised as follows: Debtors Rs 90,000, Stock Rs 2,00,000, and Goodwill Rs 25,000, Motor Car was taken over by Ganesh for Rs 70,000 and Furniture by Chandan for Rs 60,000.
The Creditors were paid Rs 22,500 in full settlement. The expenses of realisation amounted to Rs 10,000.
Pass necessary journal entries in the books of the firm.
X, Y and Z were carrying on business. They share profits and losses in the ratio of 5:3:2 respectively. Their Balance Sheet as on 31st March, 2010 was as under:
Balance Sheet as on 31st March, 2010
| Liabilities | Amount (Rs) | Assets | Amount (Rs) | |
| Sundry Creditors | 21000 | Plant and Machinery | 20000 | |
| Y’s loan | 5000 | Investment | 8000 | |
| Reserve fund | 20000 | Stock | ||
| Capital Account: | Debtors | 18000 | 17000 | |
| X | 20000 | Less : R.D.D | 1000 | |
| Y | 10000 | Cash in hand | 2000 | |
| Z | 4000 | Cash at Bank | 3000 | |
| 80000 | 80000 | |||
On the above date the firm was dissolved and the assets realised as under:
1) Investment Rs 5,000, Stock Rs 24,000 and Debtors Rs 15,000.
2) The Plant and Machinery was taken over by Mr. ‘X’ at book value.
3) Sundry Creditors and Mr. ‘Y’ loan were paid in full.
4) Realisation expenses incurred Rs 1,000.
Prepare Realisation Account, Partner’s Capital Account and Bank Account
Pannalal, Babulal and Hiralal were partners sharing profits and losses in the proportion of 2:2:1, following is their Balance Sheet as on 31st March, 2008.
Balance Sheet as on 31st 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 | |
| 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.
Gautam, Viral and Ashwin were Partners 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: | Building | 73,900 | |
| Gautam | 75000 | Furniture | 44,100 |
| Virat | 45000 | Stock | 25,400 |
| Reserve Fund | 27,000 |
Debtors |
33,600 |
| Creditors | 48,500 | Cash | 15,000 |
| Bank Loan | 11,500 | Ashwin’s Capital | 15,000 |
| 207000 | 207000 |
The firm was dissolved due to insolvency of Ashwin and the following was the result.
(i) The realisation of Assets were as follows:
a) The stock was completely damaged and could realise worth Rs 16,500 only.
b) Building was sold for Rs 49,800.
c) Furniture was realised by the firm at Rs 23,100 less than the book value.
d) A Customer who owes Rs 14,400 became insolvent and nothing could be recovered from his private estate.
(ii) Creditors were paid for Rs 36,900 in full settlement and Bank Loan was discharged fully.
(iii) The expenses of realisation Rs 4,100
(iv) Ashwin became insolvent and the firm could recover only Rs 4,000 from his private estate.
Prepare Realisation A/c, Partner’s Capital A/c and cash A/c to close 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 31st March, 2012 was as follows:
Balance Sheet as on 31st 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 | |
| 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
Distinguish between firm’s debts and partner’s private debts.
Following is the balance sheet as on 31 st march 2016 of M/s . Jay and Ajay :
Balance sheet as on 31st MArch 2016
| Liabilities | Amount | Assets | Assets | |
| Capital A/cs : | Cash at bank | 18000 | ||
| Jay | 150000 | Stock | 75000 | |
| Ajay | 150000 | Furniture | 90000 | |
| Reserve fund | 30000 | Investment | 30000 | |
| Loan from Jay | 3000 | Machinery | 90000 | |
| Bills payable | 6000 | Buildings | 45000 | |
| Creditors | 30000 | Debtors | 24000 | 21000 |
| Less : R.D.D | 3000 | |||
| 369000 | 369000 | |||
The firm was dissolved on 31st March , 2016 and the assets realised were as under :
(1) Jay look over the investment at ₹ 27600 and Ajay took over the furniture at ₹ 84000.
(2) The assets were realised as follows :
Stock 73500 ;
Debtors 22500 ;
Machinery 84000 ;
Building 42000
(3) The creditors were paid off at a discount of 900 and other liabilities were paid in full.
(4) Dissolution expenses were 4200
(5) Jay and Ajay were sharing profits and losses in the ratio of 3 : 2.
Prepare :
1) Realisation Account
2) Capital Account of all partners
3) Bank 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 |
Gaurav, Saurabh, and Vaibhav were partners in firm sharing profits and losses in the ratio of 2 : 2 : 1. They decided to dissolve the firm on 31st March 2018. After transferring Sundry assets (other than cash in hand and cash at Bank) and third-party liabilities to realisation account, the assets were realized and liabilities were paid off as follows:
- A machinery with a book value of ₹ 6,00,000 was taken over by Gaurav at 50% and stock worth ₹ 5,000 was taken over by a creditor of ₹ 9,000 in full settlement of his claim.
- Land and building (book value ₹ 3,00,000) were sold for ₹ 4,00,000 through a broker who charged 2% commission.
- The remaining creditors were paid ₹ 76,000 in full settlement of their claim and the remaining assets were taken over by Vaibhav for ₹ 17,000.
- Bank loan of ₹ 3,00,000 was paid along with interest of ₹ 21,000.
Pass necessary journal entries for the above transactions in the books of the firm.
All activities of partnership firm cease on _________ of firm.
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.
Creditors ₹ 30,000, Bills Payable ₹ 20,000 and Bank Loan ₹ 10,000. Available Bank Balance ₹ 40,000 what will be the amount that creditors will get in case of all partner's insolvency.
Complete the table.
| 1) | Debit side total of Realisaton A/c | Credit side total of Realisation A/c | Loss on Realisations |
| ₹ 20,000 | ? | ₹ 4,000 | |
| 2) | Creditors | Bills Payable | Third-Party Liabilities |
| ₹16,000 | ₹12,000 | ? | |
| 3) | Credit side total Profit ion of Realisaton A/c | Debit side total of Realisation A/c | Profit of realisation |
| ₹ 21,000 | ₹16,000 | ? | |
| 4) | Debit side total of Capital A/c | Credit side total of Capital A/c | Cash brought by partner |
| ₹ 51,000 | ? | ₹ 17,000 | |
| 5) | capital deficiency | Cash brought by Insolvent Partner | Insolvent loss |
| ? | ₹ 7,000 | ₹ 21,000 |
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.’
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?
Write the word/term/phrase, which can substitute each of the following statements.
"Liability likely to arise in future on happening of certain events".
Consider the following statements
Statement 1: "On dissolution Cash or Bank Account is closed automatically".
Statement 2: This is done because of the double- entry system of book-keeping.
On the basis of the following data, how much final payment will be made to a partner on firm's dissolution?
Credit balance of capital account of the partner was ₹ 50,000. Share of loss on realisation amounted to ₹ 10,000. 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 ______.
Which of the following does not result into reconstitution of a partnership firm?
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 | |
| Bank | 20000 | |||
| 2,02,000 | 2,02,000 |
On 1st 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.
Complete the table.
| Creditors | Bills Payable | Third-Party Liabilities |
| ₹ 16,000 | ₹ 12,000 | ? |
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 31st 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:
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.
Do you agree or disagree with the following statement:
On dissolution, cash/bank account is closed automatically.
Complete the following table:
| Debit side total of Realisation A/c | Credit side total of Realisation A/c | Loss on Realisation |
| ₹ 30,000 | ? | ₹ 24,000 |
| ? | ₹ 10,000 | ₹ 40,000 |
Following is the Balance sheet of Ram, Shyam and Murari as on 31st March, 2023.
| Liabilities | Amount (₹) | Assets | Amount (₹) |
| Capital | Furniture | 10,800 | |
| Ram | 18,000 | Debtors | 72,000 |
| Shyam | 10,800 | Stocks | 86,400 |
| Creditors | 1,44,000 | Cash | 3,600 |
| Ram's Loan | 36,000 | 3,600 | 36,000 |
| 2,08,800 | 2,08,800 |
Due to the inability to pay the creditors, the firm is dissolved, Shyam and Murari cannot pay anything. Ram can contribute only ₹ 5,400 from his private estate. Stock realised ₹ 54,000. Debtors realised ₹ 57,600 and Furniture is sold for ₹ 3,600. Realisation Expenses amounted to ₹ 10,800.
Prepare necessary Ledger account to close the books of the firm.
Vinay, Premal and Monil were in partnership sharing profits and losses in the ratio 2 : 2 : 1. They decided to dissolve their partnership firm on 31st March, 2023 and their Balance Sheet on that date stood as:
| Balance Sheet as on 31st March, 2023 | |||||
| Liabilities | Amount (₹) | Amount (₹) | Assets | Amount (₹) | Amount (₹) |
| Capital : | Plant | 2,40,000 | |||
| Vinay | 1,80,000 | 3,60,000 | Debtors | 90,000 | |
| Premal | 1,20,000 | Stock | 1,50,000 | ||
| Monil | 60,000 | ||||
| Loan | 24,000 | ||||
| Sundry Creditors | 18,000 | ||||
| Bank Overdraft | 78,000 | ||||
| 4,80,000 | 4,80,000 | ||||
It was agreed that:
(1) Vinay to discharge Loan and to take Debtors at book value.
(2) Plant realised ₹ 2, 70,000.
(3) Stock realised ₹1,44,000.
( 4) Creditors were paid off at a discount of ₹ 90.
Show Realisation Account, Partner's Capital Accounts and Bank Account.
______ means winding-up of partnership firm.
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.
