मराठी

Mita and Sita, sharing profits in, the ratio 2 : 1, decided to dissolve their partnership firm on 31st March, 2022, on which date their Balance Sheet was as under:

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प्रश्न

Mita and Sita, sharing profits in, the ratio 2 : 1, decided to dissolve their partnership firm on 31st March, 2022, on which date their Balance Sheet was as under:

Balance Sheet of Mita and Sita
as on 31st March, 2022
Liabilities   (₹) Assets   (₹)
Sundry Creditors   40,000 Land & Building   29,000
Sita's Son's Loan   2,000 Plant & Machinery   20,000
Bank Overdraft   8,000 Stock   3,000
Capital Accounts:     Debtors 26,400 26,000
Mita  20,000 30,000 Less: Provision for
Doubtful Debts
400
Sita 10,000 Bank   2,000
    80,000     80,000

The partnership firm was dissolved on the date of the Balance Sheet subject to the following adjustments:

  1. Trade creditors accepted plant and machinery at an agreed valuation of 10% less than the book value and the balance in cash in full settlement of their claims.
  2. Debtors of ₹ 1,000 proved bad.
  3. Sita took over the stock at a discount of 20%.
  4. Realisation expenses of ₹ 1,100 were paid by the firm.

You are required to prepare the Realisation Account.

खातेवही
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उत्तर

Dr. Realisation Account Cr.
Particulars Amount (₹) Particulars (₹) Amount (₹)
To Land and Building 29,000 By Provision for
Doubtful Debts
  400
To Plant & Machinery 20,000 By Sundry Creditors   40,000
To Stock 3,000 By Sita's Son's Loan   2,000
To Debtors 26,400 By Sita's capital A/c (stock)   2,400
To Bank (Creditors paid) 22,000 By Bank:    
To Bank (Expenses) 1,100 Debtors 25,400 25,400
To Bank (Sita's son's loan) 2,000 By Loss Transferred to:    
    Mita's Capital A/c 22,200 33,300
    Sita's Capital A/c 11,100
  1,03,500     1,03,500

Amount payable to creditors = 40,000 - (20,000 - (20,000 × 10%))

= 40,000 - 18,000

= ₹ 22,000

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  या प्रश्नात किंवा उत्तरात काही त्रुटी आहे का?
2022-2023 (March) Official

संबंधित प्रश्‍न

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


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


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

The insolvency loss at the time of dissolution of the firm is shared by the solvent partners in their profit sharing ratio.


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


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


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.


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.


Insolvent Partner Capital A/c debit side total is ₹ 10,000 and the credit side total is  ₹ 6,000. Calculate deficiency.


Charu, Dhwani, Iknoor and Paavni were partners in a firm. They had entered into partnership firm last year only, through a verbal agreement. They contributed Capitals in the firm and to meet other financial requirements, few partners also provided loan to the firm. Within a year, their conflicts arisen due to certain disagreements and they decided to dissolve the firm. The firm had appointed Ms. Kavya, who is a financial advisor and legal consultant, to carry on the dissolution process. In the first instance, Ms. Kavya had transferred various assets and external liabilities to Realisation A/c. Due to her busy schedule; Ms. Kavya has delegated this assignment to you, being an intern in her firm. On the date of dissolution, you have observed the following transactions:

  1. Dhwani’s Loan of ₹ 50,000 to the firm was settled by paying ₹ 42,000.
  2. Paavni’s Loan of ₹ 40,000 was settled by giving an unrecorded asset of ₹ 45,000.
  3. Loan to Charu of ₹ 60,000 was settled by payment to Charu’s brother loan of the same amount.
  4. Iknoor’s Loan of ₹ 80,000 to the firm and she took over Machinery of ₹ 60,000 as part payment.

You are required to pass necessary entries for all the above-mentioned transactions.

Hints:

  1. Dr. Dhwani’s Loan A/c by ₹ 50,000; Cr. Bank A/c by ₹ 42,000 and Realisation A/c by ₹ 8,000.
  2. Dr. Paavni’s Loan A/c and Cr. Realisation A/c by ₹ 40,000.
  3. Dr. Realisation A/c and Cr. Loan to Charu A/c by ₹ 60,000.
  4. Dr. Iknoor Loan A/c by ₹ 80,000; Cr. Realisation A/c by ₹ 60,000 and Bank A/c by ₹ 20,000.

Complete the table.

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

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