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A, B and C are sharing profits and losses in the ratio of 1/2, 3/10, and 1/5 respectively. Find the new ratio of the remaining partners if A retires ______.
Concept: Retirement of Partner
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 | ||
| 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.
Concept: Concept of Dissolution of Partnership Firm
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.
Concept: Concept of Dissolution of Partnership Firm
What is meant by ‘capital fund’ ?
Concept: Additional Information - Capitalisation of Entrance Fees
Excess of expenditure over income of 'not for profit' concerns.
Concept: Concept of Non-Profit Concerns
Form the following Receipts and payments Account of A. S. C. College of Commerce, Ramanand Nagar, for the year ending 31st March, 2016 and additional information, prepare Income and Expenditure Account for the year ending 31st March, 2016 and Balance Sheet as on that date.
Receipts and Payments Account
for the year ended on 31 March, 2016
Dr. Cr.
| Receipts | Amount | Payments | Amount |
| To Balance b/d | By Salaries | 67,000 | |
| Cash in hand | 7,950 | By Electricity | 26,200 |
| Cash in bank | 50,800 | By Books | 41,300 |
| To Life membership fees | 20,500 | By Furniture | 45,000 |
| To Donations | 1,00,000 | By Stationery | 18,300 |
| To Tuition fees | 1,30,000 | By Fixed deposits | 2,00,000 |
| To Term fees | 1,00,000 | By Balance c/d | |
| To Admission fees | 40,000 | Cash | 1,450 |
| Bank | 50,000 | ||
| 4,49,250 | 4,49,250 |
Additional information :
| Particulars | 01.04.2015 Amount (Rs) | 31.03.2016 Amount (Rs) |
| Furniture | 40,000 | 75,000 |
| Building Fund | 1,50,000 | ............ |
| Fixed deposits | 1,60,000 | ............ |
| Capital Fund | 1,20,750 | ............ |
(2) 50% of donations are received for building fund.
(3) Life membership fees are to be capitalised.
(4) Tuition fees includes Rs 12,000 received for the last year.
(5) Outstanding tuition fees for the current year amounted to Rs 4,200.
Concept: Additional Information - Prepaid Expenses of the Current and Previous Year
Concept: Concept of Non-Profit Concerns
Fees paid by persons to become members of a ‘Not for Profit’ concern.
Concept: Receipts and Payments Account
Receipt and Payment account is a ______ account.
Concept: Receipts and Payments Account
The main objective of not for profit organizations is to earn profit.
Concept: Concept of Non-Profit Concerns
Answer in one sentence only.
What is an Entrance Fee?
Concept: Additional Information - Capitalisation of Entrance Fees
Donation for Scholarship Fund is ______.
Concept: Receipts and Payments Account
The closing balance of Receipts and Payments account usually represent _______.
Concept: Receipts and Payments Account
Write the word/phrase/term, which can substitute the following sentence.
The receipts which are not recurring in nature.
Concept: Receipts and Payments Account
Credit side of Receipts and Payments Account shows cash ______.
Concept: Receipts and Payments Account
State whether the following statement is True or False with reason.
The debit balance of insolvent partner’s Capital Account is known as a capital deficiency.
Concept: Concept of Dissolution of Partnership Firm
Mr. Aaba and Mr. Baba are equal partners whose Balance Sheet as on 31 st March, 2012 was as under:
Balance Sheet as on
31st March, 2012
| Liabilities | Amount(Rs.) | Assets | Amount(Rs.) |
| Sundry Creditors | 16000 | Cash in hand | 500 |
|
Capital A/c Aaba Baba |
2000 2000 |
Stock | 4500 |
| Debtors | 4000 | ||
| Plant and machinery | 5000 | ||
| Furniture | 2000 | ||
| Land and Building | 4000 | ||
| 20000 | 20000 |
Due to weak financial position of the partners the firm is dissolved.
Aaba and Baba are not able to contribute anything from their private estate, hence they are declared insolvent.
The assets are realised as follows :-
Stock Rs. 3,000, Plant and Machinery Rs. 3,000, Furniture Rs. 1,000, Land and Building Rs. 2,000 and Debtors Rs. 1,000 only.
Realisation expenses amounted to Rs. 500.
You are required to prepare necessary Ledger Accounts to close the books of the firm.
Concept: Concept of Dissolution of Partnership Firm
An account opened to find out the profit or loss on sale of assets and settlement of liabilities.
Concept: Concept of Dissolution of Partnership Firm
|
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.
Concept: Concept of Dissolution of Partnership Firm
Concept: Concept of Dissolution of Partnership Firm
