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Concept: Concept of Dissolution of Partnership Firm
Devendra and Ganesh were partners sharing profits and losses in the ratio of 3: 2. They dissolved the partnership firm on 31st March 2013 when their position was as follows:
The assets realised as follows:
| Balance Sheet as on 31.03.2013 | |||
| Liabilities | Amount Rs | Assets | Amount Rs. |
| Sundry Creditor | 12,500 | Debtors 56,250 | |
| Bank Overdraft | 10,000 | Less: R.D.D. 6,250 | 50000 |
| Reserve Fund | 15,000 | Stock | 112500 |
| Capital Accounts: | Furniture | 25000 | |
| Devendra 1,15,000 | Motor Car | 37500 | |
| Ganesh 75,000 | Cash in hand | 2500 | |
| 227500 | 227500 | ||
(1) Debtors Rs. 45,000, stock Rs. 1,00,000 and goodwill Rs. 12,500
(2) The motor car was taken over by Devendra for Rs. 35,000 and furniture by Ganesh for Rs. 30,000.
(3) The creditors were paid Rs. 11,250 in full settlement.
(4) The realisation expenses were Rs. 5,000.
Pass necessary journal entries in the books of the firm.
Concept: Concept of Dissolution of Partnership Firm
(b) credit
(c) asset
(d) liability
Concept: Effects of Adjustments-Drawings
Concept: Concept of Dissolution of Partnership Firm
| Balance Sheet as on 31st March 2012 | |||
| Liabilities | Amount (Rs) | Assets | Amount (Rs) |
| Sundry Creditors | 15,000 | Cash at bank | 3,000 |
| Uday’s Wife’s Loan | 30,000 | Debtors 67,500 | |
| Capital A/c | (–) R.D.D. 7,500 | 60,000 | |
| Uday | 1,38,000 | Stock | 135000 |
| Prabhakar | 90,000 | Machinery | 45000 |
| Furniture | 30000 | ||
| 2,73,000 | 2,73,000 | ||
The assets were realised as under:
Goodwill Rs. 15,000, Stock Rs. 1,20,000 and Debtors Rs. 54,000.
Machinery was taken over by Prabhakar at Rs. 40,000 and furniture by Uday at book value.
Uday agreed to discharge his wife’s loan.
The creditors were paid at a rebate of Rs. 3,000
The expenses of dissolution amounted to Rs. 6,000
Pass necessary Journal Entries in the books of the firm.
Concept: Concept of Dissolution of Partnership Firm
Give the word/term/phrase which can substitute the following statement.
Assets which are not recorded in the books of account.
Concept: Concept of Dissolution of Partnership Firm
If any unrecorded liability is paid on dissolution of the firm ___________ is debited.
Concept: Concept of Dissolution of Partnership Firm
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
Concept: Concept of Dissolution of Partnership Firm
Aniket Ltd issued 40,000 equity shares of ` 100 each payable as follows :
On application Rs 20
On allotment Rs 30
On first call Rs 30
On second call Rs 20
The company received applications for 50,000 equity shares. Allotment of shares was made on pro-rata basis. Excess application money were adjusted to allotment. Share allotment and calls were made and also received, except Mr. Sanish who was holding 1,000 shares failed to pay both the calls. His shares were forfeited after the second call.
Record the above transactions in the books of Aniket Ltd
Concept: Concept of Dissolution of Partnership Firm
Answer in one sentence only.
What is a capital deficiency?
Concept: Concept of Dissolution of Partnership Firm
Akbar and Birbal were partners in a firm sharing profits and losses in the ratio of 3 : 2 respectively. Their balance sheet as on 31st march , 2013 was as follows :
Balance Sheet as on 31st March, 2013
| Liabilities | Amount | Assets | Amount | |
| Capital A/c’s: | Plant and Machinery | 40,000 | ||
| Akbar | 60,000 | Furniture | 12,000 | |
| Birbal | 40,000 | Sundry debtors | 61,000 | 60,000 |
| General reserve | 20,000 | Less: R.D.D. | 1,000 | |
| Sundry creditors | 39,700 | Stock | 28,300 | |
| Bank | 19,400 | |||
| 1,59,700 | 1,59,700 | |||
On the above date, the firm was dissolved and the assets realised were as follows :
Plant and machinery ₹ 30,000.
Sundry debtors ₹ 58,000.
Furniture was taken over by Akbar for ₹ 10,000 and stock by Birbal for 27,000.
Sundry creditors were paid ₹ 38,000 in full settlement of their claim.
Realisation expenses amounted to ₹ 2,000.
Prepare :
(1) Realisation Account
(2) Partners’ Capital Accounts
(3) Bank Account
Concept: Concept of Dissolution of Partnership Firm
Mr. Yogesh keeps his books on Single Entry system. From the following particulars, prepare Opening and Closing Statement of Affairs and Statement of Profit and Loss.
|
Particulars |
Amount |
Amount |
|
Bank balance Cash balance Sundry debtors Stock Furniture Machinery Sundry creditors Bills payable |
36,000 7,500 90,000 60,000 9,000 60,000 36,000 16,500 |
27,000 9,000 1,20,000 90,000 9,000 90,000 60,000 27,000 |
Additional information:
(1) Mr. Yogesh has withdrawn Rs 22,500 from the business for his personal use.
(2) He has introduced additional capital of Rs 7,500 in the business on 1st January, 2010.
(3) Additions to machinery were made on 1st January, 2010.
(4) Depreciate furniture and machinery @ 10% p.a.
(5) Maintain reserve for doubtful debts @ 2% on sundry debtors.
(6) Closing stock is overvalued by 20% in the books.
Concept: Illustrations of Single Entry System
Under Single Entry System, additional capital brought in during the year is _____ closing capital in order to calculate profit.
Concept: Additional Information - Additional Capital
Mr. Balasaheb is dealing in the business of fruits. He maintains his accounting record with single entry. The following figures are taken from his record.
|
Particulars |
Balance as on 1.4.2004 |
Balance as on 31.3.2005 |
|
Land and |
40,000 |
50,000 |
Mr. Balasaheb introduced Rs. 10,000 as further capital.
He spent Rs. 45,000 from the business for his daughter's marriage.Depreciate Land and Building by Rs. 5,000
Create 5% Reserve for Doubtful Debts on Sundry Debtors.
Concept: Illustrations of Single Entry System
Select the most appropriate answer the alternatives given below and rewrite the Sentence
Further capital introduced during the year is _______________ from closing capital in order to find-out the correct profit.
Concept: Additional Information - Additional Capital
Answer in one sentence only.
What is dissolution of partnership firm?
Concept: Concept of Dissolution of Partnership Firm
Answer in one sentence only.
When is Realisation Account opened?
Concept: Concept of Dissolution of Partnership Firm
Answer in one sentence only.
Which accounts are not transferred to Realisation account?
Concept: Concept of Dissolution of Partnership Firm
Answer in one sentence only.
Who should bear the capital deficiency of an insolvent partner?
Concept: Concept of Dissolution of Partnership Firm
Answer in one sentence only.
Which account is debited on payment of dissolution expenses?
Concept: Concept of Dissolution of Partnership Firm
