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.

In the books of Kalpana and Bela Dr. Realisation Account Cr. Particulars Amount (₹) Amount (₹) Particulars Amount (₹) Amount (₹) To Sundry Assets A/c By Sundry Liabilities A/c Building 14,000 Creditors 34,800 Plant 18,000 Bills Payable 5,200 40,000 Debtors 28,000 By Bank A/c Stock 10,000 70,000 Plant 16,000 To Kalpana's Current A/c Building 12,000 Bills Payable 5,200 Stock 8,000 To Bank A/c Debtors 24,000 60,000 Dissolution Expense 2,800 By Partner's Current A/c(Loss on Realisation transferred) Creditors 34,800 37,600 Kalpana 7,680 Bela 5,120 12,800 1,12,800 1,12,800 Dr. Partner's Current Account Cr. Particulars Kalpana (₹) Bela(₹) Particulars Kalpana (₹) Bela(₹) To Realisation A/c - Loss 7,680 5,120 By Balance b/d 6,000 4,000 To Partner's Capital A/c 3,520 - By Bills Payable A/c 5,200 - By Partner's Capital A/c - 1,120 11,200 5,120 11,200 5,120 Dr. Partner's Capital Account Cr. Particulars Kalpana (₹) Bela(₹) Particulars Kalpana (₹) Bela(₹) To partner's Current A/c - 1,120 By Balance c/d 20,000 12,000 To Bank A/c 23,520 10,880 By Partner's Current A/c 3,520 - 23,520 12,000 23,520 12,000 Dr. Bank Account Cr. Particulars Amount (₹) Particulars Amount (₹) To Balance b/d 12,000 By Realisation A/c(Exp. and Liabilities) 37,600 To Realisation A/c (Assets) 60,000 By Kalpana's Capital A/c 23,520 By Bela's Capital A/c 10,880 72,000 72,000

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: Prepare: Realisation A/c, Partner's current A/c, Partner's - Book Keeping and Accountancy

प्रश्न

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.

खातेवही

उत्तर

In the books of Kalpana and Bela

Dr.	Realisation Account						Cr.
Particulars		Amount (₹)	Amount (₹)	Particulars	Amount (₹)	Amount (₹)
To Sundry Assets A/c				By Sundry Liabilities A/c
Building		14,000		Creditors	34,800
Plant		18,000		Bills Payable	5,200	40,000
Debtors		28,000		By Bank A/c
Stock		10,000	70,000	Plant	16,000
To Kalpana's Current A/c				Building	12,000
Bills Payable			5,200	Stock	8,000
To Bank A/c				Debtors	24,000	60,000
Dissolution Expense		2,800		By Partner's Current A/c (Loss on Realisation transferred)
Creditors		34,800	37,600	Kalpana	7,680
				Bela	5,120	12,800
			1,12,800			1,12,800

Dr.	Partner's Current Account						Cr.
Particulars		Kalpana (₹)	Bela (₹)	Particulars	Kalpana (₹)	Bela (₹)
To Realisation A/c - Loss		7,680	5,120	By Balance b/d	6,000	4,000
To Partner's Capital A/c		3,520	-	By Bills Payable A/c	5,200	-
				By Partner's Capital A/c	-	1,120
		11,200	5,120		11,200	5,120

Dr.	Partner's Capital Account						Cr.
Particulars		Kalpana (₹)	Bela (₹)	Particulars	Kalpana (₹)	Bela (₹)
To partner's Current A/c		-	1,120	By Balance c/d	20,000	12,000
To Bank A/c		23,520	10,880	By Partner's Current A/c	3,520	-
		23,520	12,000		23,520	12,000

Dr.	Bank Account				Cr.
Particulars		Amount (₹)	Particulars	Amount (₹)
To Balance b/d		12,000	By Realisation A/c (Exp. and Liabilities)	37,600
To Realisation A/c (Assets)		60,000	By Kalpana's Capital A/c	23,520
			By Bela's Capital A/c	10,880
		72,000		72,000

shaalaa.com

Concept of Dissolution of Partnership Firm

या प्रश्नात किंवा उत्तरात काही त्रुटी आहे का?

Q 3.A Q 2.B Q 3.B

2021-2022 (March) Model set 1 shaalaa.com

APPEARS IN

2021-2022 (March) Model set 1 shaalaa.com (with solutions)

Q 3.A | 10 marks

व्हिडिओ ट्यूटोरियलVIEW ALL [2]

view
व्हिडिओ ट्यूटोरियल For All Subjects
Concept of Dissolution of Partnership Firm

video tutorial00:35:09
Concept of Dissolution of Partnership Firm

video tutorial00:24:23

संबंधित प्रश्‍न

An account opened to find out the profit or loss on sale of assets and settlement of liabilities.

If an asset is taken over by partner from firm his capital account will be ___________.

A, B, and C were partners sharing profits and losses in the proportion of 2 : 2 : 1. Following is their balance sheet as on 31st March, 2013.

Balance sheet as on 31st March, 2013

Liabilities	Amount (Rs. )	Assets	Amount (Rs.)	Amount (Rs.)
Capital Account		Machinery		25,000
A	30,000	Stock		10,000
B	10,000	Debtors	27,500
C	10,000	Less: R.D.D.	1,500	26,000
General Reserve	3,000	Investment		12,000
Creditors	20,000	Profit and Loss A/c		9,000
A’s Loan Account	4,000	Bank		2,000
Bills Payable	7,000
	84,000			84,000

On the above date, the partners decide to dissolve the firm.(1) Assets were realised as -
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 int he books of the firm.

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.

Distinguish between ‘Dissolution of partnership’ and Dissolution of partnership firm ‘on the basis of closure of Books.

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

Expenses incurred on a dissolution of a partnership firm.

Answer in one sentence only.

Which accounts are not transferred to Realisation account?

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?

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.

Write the word / term / phrase, which can substitute the following statements.
Credit balance in Realisation Account.

Write the word / term / phrase, which can substitute the following statement.
Liability likely to arise in future on happening of certain events.

In case of dissolution assets and liabilities are transferred to ______ A/c.

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

Sushil and Sumit were in partnership sharing profits and losses in the proportion of 3/5 and 2/5 respectively. On 31^st March, 2005 they decide to dissolve the firm when their Balance Sheet was as under:

Balance Sheet as on 31^st 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 31^st March, 2011 when their position was as follows:

Balance Sheet as on 31^st March, 2011

Liabilities	Amount (Rs)	Assets		Amount (Rs)
Sundry Creditors	25000	Debtors	112500	100000
Bank overdraft	20000	Less : R.D.D	12500	100000
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.

A, B and C were partners sharing profits and losses in the ratio of 3:2:1. On 31^st March, 2010. Their Balance Sheet was as follows:

Balance Sheet as on 31^st March, 2010

Liabilities	Amount (Rs)	Assets		Amount (Rs)
Sundry Creditors	15400	Cash at Bank		3500
Bills payable	3600	Stock		19800
A’s loan A/c	10000	Debtors	15000	14000
Capital Account:		Less : Provision	1000	14000
A	20000	Join Life Policy		4000
B	16000	Plant and Machinery		43700
C	8000
Reserve Fund	12000
	85000			85000

The firm was dissolved on 31^st March, 2010 and the assets realised as follows:

1) Join Life Policy was taken over by Mr. A at Rs 5,000.

2) Stock realised Rs 18,000, Debtors realised Rs 14,500, Plant and Machinery was sold for Rs 36,000.

3) Liabilities were paid in full. In addition one bill for Rs 700 under discount was dishonoured and had to be taken up by the firm.

4) There were no realisation expenses.

Give the Journal entries and necessary Ledger Accounts to close the books of the firm.

Mahesh, Suresh and Jayesh were partners of the firm. They decided to dissolve the firm on 31^st March, 2012. Their Balance Sheet as on that date was as under:

Balance Sheet as on 31^st March, 2012

Liabilities	Amount (Rs)	Assets		Amount (Rs)
Creditors	18000	Cash at Bank		9600
Loan	4500	Sundry Assets		51000
Capitals		Debtors	72600	69000
Mahesh	82500	Less : R.D.D.	3600	69000
Suresh	30000	Stock		23400
Jayesh	21000	Furniture		3000
	156000			156000

The firm was dissolved as follows:

1) Mahesh will accept furniture for Rs 2,000 and agreed accept the debtors of book value of Rs 60,000 at on agreed value of Rs 51,000.

2) Suresh will accept stock at an agreed value Rs 20,000, and Sundry Assets of Book value Rs 24,000 at Rs 23,500.

3) Jayesh will accept remaining Sundry Assets for Rs 25,000 He will further accept the liability of loan along with due interest at 12% p.a.

Interest for three months on this loan was outstanding and was not recorded in the books.

4) Expenses of dissolution were Rs 1,000 and outstanding expenses of Rs 1,200 were to be paid from the firm.

5) The remaining debtors were realised Rs 7,000.
Prepare:
1) Realisation A/c
2) Partner’s Capital A/c
3) Bank A/c

Gautam, Viral and Ashwin were Partners sharing profits and losses equally. Their Balance sheet as on 31^st December, 2011 was as follows:

Balance Sheet as on 31^st 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 31^st March, 2012 was as follows:
Balance Sheet as on 31^st 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	15000
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

State the difference between dissolution of partnership and dissolution of partnership firm.

Distinguish between firm’s debts and partner’s private debts.

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 31^st 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.

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.

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.

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.

Shailesh and Shashank were partners sharing Profits and Losses in the ratio of 3:2. Their Balance Sheet as on 31^st March 2019 was as follows.

Balance Sheets as on 31st December 2019.
Liabilities	Amount ₹	Assets	Amount ₹
Capital Account :		Building	7000
Shailesh	10,000	Plant	9,000
Shashank	6,000	Debtors	14,000
Current Account :		Stock	5,000
Shailesh	3,000	Bank	6,000
Shashank	2,000
Creditors	17,400
Bills payable	2,600
	41,000		41,000

The firm was dissolved on the above date and the assets realised as under.

1. Plant ₹ 8,000, Building ₹ 6,000, Stock ₹ 4,000 and Debtors ₹ 12,000.

2. Shailesh agreed to pay of the Bills Payable.

3. Creditors were paid in full.

4. Dissolution expenses were ₹ 1,400

Prepare Realisation A/c, Partners Current A/c, Partners Capital A/c, and Bank A/c

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

Balance Sheets as on 31^st 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.

The object of a partnership firm is ______

On which of the following grounds the court may order a partnership firm to be dissolved?

Name the account opened to find out the Profit or Loss on Sale of Assets and Settlement of Liabilities?

Consider the following statements

Statement 1: "Dissolution takes place when the relation among the partner's comes to an end."

Statement 2: "This can be done either voluntarily or compulsorily."

Which of the following is the characteristic of a partnership firm?

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

Pick the odd one out.

Asha, Usha and Nisha are partners in the firm sharing profits and losses in the ratio of 3 : 2 : 1 respectively. On 31st March, 2019 they decided to dissolve the firm when their Balance Sheet was as under:

Balance Sheet as on 31st March, 2019
Liabilities	Amount (₹)	Assets	Amount (₹)
Creditors	28,800	Building	1,02,000
Bills Payable	21,600	Machinery	73,000
Capitol Accounts:		Motor Car	1,67,600
Asha	2,27,160	Goodwill	45,600
Usha	1,44,000	Investment	62,400
Nisha	1,08,000	Debtors	30,600
		Stock	45,000
		Bank	3,360
	5,29,560		5,29,560

The firm was dissolved on the above date and the assets realised as under:

Asha agreed to take over the Building at ₹ 1,23,600
Usha took over Goodwill Stock and Debtors at book value and agreed to pay Creditors and Bills payable.
Motor car and Machinery realised at ₹ 1,51,080 and ₹ 31,680 respectively.
Investment were taken by Nisha at an agreed value of ₹ 55,440.
Realisation Expenses amounted to ₹ 6,800.

Prepare:

Realisation Account
Partners' Capital Account
Bank Account

At the time of dissolution of a firm, Creditors are ₹ 70,000; Firm’s Capital is ₹ 1,20,000; Cash Balance is ₹ 10,000. Other assets realised ₹ 1,50,000. Gain/Loss in the realisation account will be:

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	46,000
Creditors		12,000	Stock		15,600
Loan		3,000	Cash		6,400
		1,04,000			1,04000

It was agreed as under:

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.
Sachin is to take over all Stock at ₹ 14,000 and Sundry Assets worth ₹ 16,000 at ₹ 14,400 only.
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.
The dissolution expenses were ₹ 540.
The remaining debtors realised only ₹ 4,200.
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.

Complete the table.

Debit side total of Realisation A/c	Credit side total of Realisation A/c	Loss on Realisation
₹ 20,000	?	₹ 4,000

Dino, Manu and Ramu are Partners Sharing Profits and Losses in the Ratio 2 : 2 : 1. They decided to dissolved the firm on 31st March, 2020. When their position was as under.

Balance Sheet as on 31st March, 2020
Liabilities		Amount (₹)	Assets	Amount (₹)
Capital A/c:			Building	78,000
Dino	26,000	66,000	Computer	45,000
Manu	22,000		Debtors	20,000
Ramu	18,000		Goodwill	35,000
Creditors		80,000	Bank	8,000
Bill Payable		40,000
		1,86,000		1,86,000

The firm was dissolved on above date and the following is the result of realisation.

The Assets were realised as Building ₹ 40,000, Computer ₹ 30,000, Debtors ₹ 10,000.
Realisation expenses amounted to ₹ 2,000.
All partners were insolvent The following amount was recovered from them Dino ₹ 2,000 and Manu ₹ 2,000.

Prepare Necessary ledger account to close the books of the firm.

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 ______.

Pass the necessary journal entries for the following transactions on the dissolution of the partnership firm of Tina and Rina after various assets (other than cash) and external liabilities have been transferred to Realisation Account:

An unrecorded asset of ₹ 18,000 was taken over by Tina at ₹ 16,000.
Rina agreed to pay her brother's loan of ₹ 23,000.
Stock of ₹ 30,000 was taken over by a creditor of ₹ 40,000 in full settlement.
Expenses of dissolution ₹ 40,000 were paid by Rina.
Creditors were paid ₹ 18,800 in full settlement of their account of ₹ 20,000.
Tina's loan of ₹ 15,000 was paid through a cheque.

Pass necessary Journal Entries for the following transactions on the dissolution of a partnership firm of Mita and Sonu on 31^st March, 2022 after the various assets other than cash and third party liabilities have been transferred to the Realisation Account.

Creditors of ₹ 90,000 took over Land and Building of ₹ 2,00,000 in full settlement of their claim.
Sonu took over debtors amounting to ₹ 50,000 at ₹ 40,000.
Realisation expenses ₹ 1,800 were paid by Sonu.
A machine which was not recorded in the books was taken over by Mita at ₹ 11,000 while its expected market value was ₹ 15,000.
Sortu agreed to pay off his wife's loan of ₹ 20,000.
Profit on dissolution amounted at ₹ 50,000.

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?

Insolvent partner Capital A/c debit side total is ₹ 25,000 and credit side total is ₹ 10,000. Calculate deficiency.

Lal, Bal and Pal were partners sharing profits and losses in the ratio of 2 : 2 : 1. The following is the Balance Sheet as on 31st March, 2020.

Balance sheet as on 31st March 2020
Liabilities	Amount (₹)	Assets		Amount (₹)
Capital A/c		Machinery		50,000
Lal	60,000	Investments		24,000
Bal	20,000	Debtors	55,000	52,000
Pal	20,000	Less: R.D.D.	(3,000)	52,000
General Reserve	6,000	Stock		20,000
Creditors	48,000	Profit and loss A/c		18,000
Bills Payable	14,000	Bank		4,000
	168000			168000

On the above date the partners decided to dissolve the firm.

(1) Assets were realised as:

Machinery	₹ 45000
Stock	₹ 18000
Investment	₹ 21000
Debtors	₹ 45000

(2) Dissolution expenses were ₹ 3000.

(3) Goodwill of the firm realised ₹ 24000.

Prepare:

Realisation Account
Partner's Capital Account
Bank Account.

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:

Assertion: A revaluation account is prepared at the time of dissolution of a partnership.

Reason: A revaluation account is prepared to determine the net gain/loss on realisation of assets and settlement of liabilities.

Which one of the following is correct?

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.

Mention the liability of a partnership firm which is not shown in its balance sheet but is paid off at the time of the dissolution of the firm.

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: Prepare: Realisation A/c, Partner's current A/c, Partner's - Book Keeping and Accountancy

Advertisements

Advertisements

प्रश्न

Advertisements

उत्तर

APPEARS IN

व्हिडिओ ट्यूटोरियलVIEW ALL [2]

संबंधित प्रश्‍न

Select a course

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: Prepare: Realisation A/c, Partner's current A/c, Partner's - Book Keeping and Accountancy

Advertisements

Advertisements

प्रश्न

Advertisements

उत्तरShow Solution

APPEARS IN

व्हिडिओ ट्यूटोरियलVIEW ALL [2]

संबंधित प्रश्‍न

Select a course

उत्तर