मराठी

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. - Accountancy

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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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2017-2018 (March) Foreign Set 2

संबंधित प्रश्‍न

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


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.


R and L were partners in a firm sharing profits in the ratio of 13:7. On 4-3-2016 their firm was dissolved. After transferring assets (other than cash) and outsiders liabilities to the realization account, you are given the following information :

(a) Subh, a creditor for Rs 4,90,000 accepted building at Rs 6,50,000 and paid the balance to the firm by a cheque.

(b) Sudha, a second creditor for Rs 1, 80,000 accepted machinery of the book value of Rs 1,80,000 at Rs 1,76,000 in full settlement of his claim.

(c) Sudhir, a third creditor for Rs 2,00,000 accepted investments of Rs 1,20,000 and a bank draft of Rs 79,000 in full settlement of his claim.

(d) Loss on dissolution was Rs 30,000. Pass necessary journal entries for the above transactions in the books of the firm


If any unrecorded liability is paid on dissolution of the firm ___________ is debited.


Answer in one sentence only.

What is a capital deficiency?


Answer in one sentence only.

Which accounts are not transferred to Realisation account?


Answer in one sentence only.

Who is called insolvent person?


Answer in one sentence only.

In what proportion is the balance on Realisation Account transferred to Partners’ Capital / Current Accounts?


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


Write the word / term / phrase, which can substitute the following statements.
Debit balance in realisation account.


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


Anil and Sunil were partners sharing profits and losses in the ratio of 3: 2. Their Balance Sheet as on 31st March, 2009.

Balance Sheet as on 31st March, 2009
Liabilities Amount (Rs) Assets Amount (Rs)
Capital Account:   Bank 30,000
Anil 50,000 Stock 25,000
Sunil 30,000 Debtors 70,000
Current Account:   Plant 45,000
Anil 15,000 Building 35,000
Sunil 10,000    
Creditors 87,000    
Bills payable 13,000    
  2,05,000   2,05,000

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

1) Stock Rs 20,000, Debtors Rs 60,000, Plant Rs 40,000 and Building Rs 30,000.

2) Anil agreed to pay off the bills payable.

3) Creditors were paid in full.

4) Dissolution expenses were Rs 7,000. 

Prepare:
(i) Realisation Account
(ii) Bank Account
(iii) Current Account and Capital Account of the partners.


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


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

        Balance Sheet as on 31st 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
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


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.


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.


Give the word/term/phrase which can substitute the following statement.

An account opened to find out the Profit or Loss on realisation of Assets and settlement of Liabilities.


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.


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.


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?


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


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.


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 dissolution of a firm, a liability taken over by a partner is credited to ______.


In the event of dissolution of the firm, the partner’s assets are first used for payment of the following:


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


Riddhi and Siddhi are partners sharing profits and losses in the ratio of 2:1. The following is their balance sheet as on 31st March, 2019.

Balance Sheet as on 31st March, 2019
Liabilities Amount (₹) Assets   Amount (₹)
Capital A/c:   Building   60,000
Riddhi 80,000 Furniture   24,000
Siddhi 60,000 Machinery   20,000
Reserve Fund 16,000 Debtors 17,600 16,000
Siddhi's Loan A/c 4,000 Less: RDD 1,600
Creditors 30,000 Stock   40,000
    Investment   8,000
    Interest Receivable   2,000
    Bank   20,000
  1,90,000     1,90,000

The firm was dissolved on 31st March 2019.

  1. The assets realised were: Machinery ₹ 22,000, Building ₹ 28,000, Stock ₹ 38,000 and Debtors ₹ 15,000.
  2. Riddhi took over the Investment at ₹ 10,000 and Furniture at book value.
  3. Siddhi agreed to accept ₹ 3,000 in full settlement of her Loan Account.
  4. Dissolution expenses amounted to ₹ 4,000.
  5. Interest receivable could not be recovered.

Prepare Realisation Account, Partners' Capital Account, Siddhi's Loan Account and Bank Account.


Complete the table.

Creditors Bills Payable Third-Party
Liabilities
₹ 16,000 ₹ 12,000 ?

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:

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

On the day of dissolution of the firm ‘Roop Brothers’ had partner’s capital amounting to ₹ 1,50,000 external liabilities ₹ 35,000, Cash balance ₹ 8,000 and P & L A/c (Dr.) ₹ 7,000. If Realisation expense and loss on Realisation amounted to ₹ 5,000 and ₹ 25,000 respectively, the amount realised by sale of assets is ______.


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.


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.


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.


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