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प्रश्न
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.
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उत्तर
| Date | Particulars | LF | Dr. (₹) | Cr. (₹) |
| a) | Realisation A/c ...Dr | 40,000 | ||
| To Sun’s Capital A/c | 40,000 | |||
| (Being Remuneration and expenses payable to Sun) | ||||
| b) | Sun’s Capital A/c ...Dr | 14,000 | ||
| Kiran’s Capital A/c ...Dr | 14,000 | |||
| To Deferred Advertisement Suspense A/c | 28,000 | |||
| (Being Advertisement Suspense A/c has been debited in partner’s capital account in their profit sharing ratio) | ||||
| c) (1) | Kiran’s Capital A/c ...Dr | 30,000 | ||
| To Realisation A/c | 30,000 | |||
| (Being 1/3 of Stock has been taken over by Kiran at 25% discount) | ||||
| c)(2) | No Entry | |||
| c)(3) | Bank A/c ...Dr | 25,000 | ||
| To Realisation A/c | 25,000 | |||
| (Being Stock Realised) | ||||
| d) | Cash/Bank A/c ...Dr | 7,000 | ||
| To Realisation A/c | 7,000 | |||
| (Being amount realised from unrecorded assets after payment of outstanding bill) |
संबंधित प्रश्न
Dissolution expenses are credited to ______.
An account opened to find out the profit or loss on sale of assets and settlement of liabilities.
|
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.
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
Assets and liabilities are transferred to Realisation Account at their ______ value.
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 statement.
Debit balance of an insolvent Partner’s Capital Account.
Give the word/term/phrase which can substitute the following statement.
The account which shows realisation of assets and discharge of liabilities.
State whether the following statements is True or False.
At the time of dissolution of Partnership Firm all assets should be transferred to Realisation A/c.
Deficiency of Insolvent partner will be suffered by solvent partners in their ___________ ratio.
Select the most appropriate alternative from those given below :
Partnership is compulsorily dissolved when the partners of the firm become ____________
Select the most appropriate alternative from those given below :
Realisation Account is __________on realisation of assets.
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.
State the difference between dissolution of partnership and dissolution of partnership firm.
Explain the process of dissolution of a partnership firm?
What is a Realisation Account?
Answer the following question:
State any two situations when a partnership firm can be compulsorily dissolved.
Give the word/term/phrase which can substitute the following statement.
Debit balance of Realisation account.
State whether the following statement is True or False with reason.
At the time of the dissolution of partnership, all assets should be transferred to Realisation 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.
Ganesh and Kartik are partners sharing Profits and Losses equally. They decided to dissolve the firm on 31st March 2018. Their Balance Sheets was as under :
| Balance Sheets as on 31st March 2018. | |||
| Liabilities | Amount ₹ | Assets | Amount ₹ |
| Creditors | 18,400 | Building | 88,000 |
| Bills Payable | 5,600 | Furniture | 12,000 |
| Reserve Fund | 20,000 | Debtors | 32,000 |
| Capital A/c : | Stock | 24,000 | |
| Ganesh | 40,000 | Bills Receivable | 4,000 |
| Kartik | 80,000 | Cash | 4,000 |
| 1,64,000 | 1,64,000 | ||
Assets were realised as under :
Building ₹82,000, Debtors ₹ 22,000, Stock ₹ 20,000. Bills Receivable ₹ 3,200 and Ganesh agreed to take over Furniture for ₹10,000. Realisation Expenses amounted to ₹ 2,000.
Show Realisation A/c, Partners’ Capital A/c and Cash A/c.
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.’
Sangeeta, Anita, and Smita were in partnership sharing Profits and Losses in the ratio 2: 2: 1. Their Balance Sheet as on 31st March 2019 was as under:
| Balance Sheets as on 31st 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.
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: "Dissolution takes place when the relation among the partner's comes to an end."
Statement 2: "This can be done either voluntarily or compulsorily."
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.
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?
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
Amul and Anand are partners in the firm sharing profits and losses in the ratio of 4 : 1. They decided to dissolve the partnership on 31st March, 2023 on which date their Balance Sheet stood as follows:
| Balance Sheet as on 31st March, 2023 | |||||
| Liabilities | Amount (₹) | Amount (₹) | Assets | Amount (₹) | Amount (₹) |
| Capital: | Furniture | 19,600 | |||
| Amul | 1,26,000 | 1,82,000 | Plant | 91,000 | |
| Anand | 56,000 | Trademark | 11,200 | ||
| Sundry Creditors | 49,000 | Sundry Debtors | 67,200 | ||
| Bank Loan | 21 ,000 | Less: R.D.D. | 4,200 | 63,000 | |
| Stock | 42,000 | ||||
| Cash in Hand | 14,000 | ||||
| Advertisement Suspense | 11,200 | ||||
| 2,52,000 | 2,52,000 | ||||
Additional Information:
(1) Plant and Stock taken over by Amul at ₹ 1,09,200 and ₹ 30,800 respectively.
(2) Debtors realised 90% of the book value and Trademark at ₹ 7,000 and Goodwill was realised for ₹ 37,800.
(3) Unrecorded assets estimated ₹ 6,300 was sold for ₹ 2,100.
( 4) ₹ 1,400 Discount were allowed by creditors while paying their claim.
(5) The Realisation expenses amounted to ₹ 4,900.
You are required to prepare Realisation A/c, Cash A/c and Partner's Capital A/cs.
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.
A firm having a debtor of ₹ 30,000 from whom the amount was due on 30th June, 2023, gets dissolved on 31st March, 2023. The debtor cleared his dues on the date of dissolution of the firm at a discount of 4% per annum.
Give the journal entry passed by the firm to realise the payment from the debtor.
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.
