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Answer in one sentence only.
What is a capital deficiency?
Concept: Concept of Dissolution of Partnership Firm
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 | |
| 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
Concept: Concept of Dissolution of Partnership Firm
Mr. Yogesh keeps his books on Single Entry system. From the following particulars, prepare Opening and Closing Statement of Affairs and Statement of Profit and Loss.
|
Particulars |
Amount |
Amount |
|
Bank balance Cash balance Sundry debtors Stock Furniture Machinery Sundry creditors Bills payable |
36,000 7,500 90,000 60,000 9,000 60,000 36,000 16,500 |
27,000 9,000 1,20,000 90,000 9,000 90,000 60,000 27,000 |
Additional information:
(1) Mr. Yogesh has withdrawn Rs 22,500 from the business for his personal use.
(2) He has introduced additional capital of Rs 7,500 in the business on 1st January, 2010.
(3) Additions to machinery were made on 1st January, 2010.
(4) Depreciate furniture and machinery @ 10% p.a.
(5) Maintain reserve for doubtful debts @ 2% on sundry debtors.
(6) Closing stock is overvalued by 20% in the books.
Concept: Illustrations of Single Entry System
Under Single Entry System, additional capital brought in during the year is _____ closing capital in order to calculate profit.
Concept: Additional Information - Additional Capital
Mr. Balasaheb is dealing in the business of fruits. He maintains his accounting record with single entry. The following figures are taken from his record.
|
Particulars |
Balance as on 1.4.2004 |
Balance as on 31.3.2005 |
|
Land and |
40,000 |
50,000 |
Mr. Balasaheb introduced Rs. 10,000 as further capital.
He spent Rs. 45,000 from the business for his daughter's marriage.Depreciate Land and Building by Rs. 5,000
Create 5% Reserve for Doubtful Debts on Sundry Debtors.
Concept: Illustrations of Single Entry System
Select the most appropriate answer the alternatives given below and rewrite the Sentence
Further capital introduced during the year is _______________ from closing capital in order to find-out the correct profit.
Concept: Additional Information - Additional Capital
Answer in one sentence only.
What is dissolution of partnership firm?
Concept: Concept of Dissolution of Partnership Firm
Answer in one sentence only.
When is Realisation Account opened?
Concept: Concept of Dissolution of Partnership Firm
Answer in one sentence only.
Which accounts are not transferred to Realisation account?
Concept: Concept of Dissolution of Partnership Firm
Answer in one sentence only.
Who should bear the capital deficiency of an insolvent partner?
Concept: Concept of Dissolution of Partnership Firm
Answer in one sentence only.
Which account is debited on payment of dissolution expenses?
Concept: Concept of Dissolution of Partnership Firm
Write the word / term / phrase, which can substitute the following statement.
Debit balance of an insolvent Partner’s Capital Account.
Concept: Concept of Dissolution of Partnership Firm
Write the word / term / phrase, which can substitute the following statement.
Expenses incurred on dissolution of a partnership firm.
Concept: Concept of Dissolution of Partnership Firm
State whether the following statement is True or False.
At the time of dissolution loan from partner will be transferred to Realisation Account.
Concept: Concept of Dissolution of Partnership 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.
Concept: Concept of Dissolution of Partnership Firm
Ram, Laxman and Bharat were partners sharing profit and losses in the ratio of 2 : 2 : 1. Following is the Balance Sheet as on 31st March, 2016 :
Balance Sheet as on 31st March, 2016
| Liabilities | Amount (Rs.) |
Assets | Amount (Rs.) |
| Capital A/c : | Machinery | 2,00,000 | |
| Ram | 2,40,000 | Stock | 80,000 |
| Laxman | 80,000 | Debtors 2,20,000 | |
| Bharat | 80,000 | Less : R.D.D. (12,000) | 2,08,000 |
| General Reserve | 24,000 | Investment | 96,000 |
| Creditors | 1,92,000 | Profit and Loss A/c | 72,000 |
| Bills Payable | 56,000 | Bank balance | 16,000 |
| 6,72,000 | 6,72,000 |
On the above date the partners decided to dissolve the firm:
(1) Assets were realised as under -
| Machinery | Rs. 1,80,000 |
| Stock | Rs. 72,000 |
| Investments | Rs. 84,000 |
| Debtors | Rs. 1,80,000 |
(2) Dissolution expenses were Rs. 12,000.
(3) Goodwill of the firm realised 96,000
Prepare :
(1) Realisation Account
(2) Partner's Capital Account
(3) Bank Account
Concept: Concept of Dissolution of Partnership Firm
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.
Concept: Concept of Dissolution of Partnership Firm
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
Concept: Concept of Dissolution of Partnership 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.
Concept: Concept of Dissolution of Partnership Firm
State whether the following statement is ‘True’ or ‘False’
On dissolution, cash or bank account is closed automatically.
Concept: Concept of Dissolution of Partnership Firm
