TS Grewal solutions for अकाऊंटन्सी डबल एंट्री बूक कीपिंग वॉल्यूम १ अँड २ [इंग्रजी] इयत्ता १२ chapter 7 - Dissolution of a Partnership Firm [Latest edition]

Which of the following is not the mode of dissolution of the firm?

At the time of dissolution of firm, Loan given by partner to the firm is paid out of the amount realised on sale of assets ______.

At the time of dissolution, if it not given whether loan to partner is received or not, Loan to Partner is ______.

At the time of dissolution of firm, balances of Partners’ Capital Accounts are paid ______.

On dissolution, if a partner pays firm’s liability which of the following account is debited?

Amount received from sale of unrecorded asset at the time of dissolution of the firm is credited to ______.

On dissolution, goodwill account is transferred to ______.

At the time of dissolution of the partnership firm, Deferred Revenue Expenditure (Advertisement Expenditure) is transferred to ______.

Sandhya and Suman were partners in a firm sharing profits and losses in the ratio of 3 : 5. They decided to dissolve the firm on 31st March, 2024. On the date of dissolution, the Balance Sheet of the firm showed a balance of ₹ 80,000 in sundry debtors and a balance of ₹ 5,000 in provision for bad debts account. How much amount will be transferred to Realisation Account to close Sundry Debtors Account?

Rohan, Mohan and Sohan were partners sharing profits equally. At the time of dissolution of the partnership firm, Rohan’s loan to the firm will be:

Anita, Benu and Chitra dissolve their partnership firm. Anita had taken a loan of 10,000 from the firm. What will be the entry to settle Anita’s Loan on the dissolution of the firm?

Which of the following is transferred to Realisation Account?

Anita and Binita are partners in a firm. Anita had taken a loan of ₹ 1,00,000 from the firm. She paid ₹ 60,000 by cheque. How will Anita’s Loan Account be closed on dissolution of the firm?

In the event of dissolution of a partnership firm, the order of payment of losses, including deficiencies of capital shall be:

On the dissolution of a partnership firm there were debtors of ₹ 34,000. Debtors of ₹ 1,000 became bad and 60% was realized from the remaining debtors. Which account will be debited and by how much amount on the realisation from debtors?

On firm’s Dissolution, firm had Patents of ₹ 1,00,000, which were sold for ₹ 40,000. Realised amount will be credited to ______.

On the basis of the following data, final payment to a partner on the firm's dissolution will be: Credit balance of the capital account of the partner was ₹ 50,000. Share of loss on realisation was ₹ 10,000. The firm’s liability taken over by him was for ₹ 8,000.

On dissolution of a firm, an unrecorded furniture of ₹ 5,000 was taken by a partner for ₹ 4,300 against payment. Which Account will be debited and by how much amount?

On the basis of the following data, what final payment to a partner on firm’s dissolution will be made: Debit balance of Capital Account 14,000. Share of his profit on realisation 43,000; Firm’s asset taken by him for 17,000.

At the time of dissolution of a firm, Debtors were ₹ 17,000 out of which ₹ 500 were not receivable, and the balance realised 60%. Which account will be debited and by how much amount?

At the time of dissolution of a firm, Creditors are ₹ 70,000; Firm’s Capital is ₹ 1,20,000; Cash Balance is ₹ 10,000. Other assets realised ₹ 1,50,000. Gain/Loss in the realisation account will be:

At the time of dissolution of a firm, the firm’s total assets were ₹ 5,00,000, creditors were ₹ 1,00,000. Realisation expenses amounted to ₹ 10,000. Assets realised 20% more than the book value and creditors were paid 5% less. Gain/loss on realisation will be ______.

In the Balance Sheet, Debtors exist at ₹ 50,000 and Provision for Doubtful Debts at ₹ 1,500. How much amount will be realised from Debtors, if bad debts are 10,000 and remaining debtors are realised at a discount of 5%?

On dissolution of the firm, Partners’ Capital Accounts are closed through ______.

On dissolution of the partnership firm of A, B and C, accumulated profits of ₹ 4,00,000 will transferred to which of the following account?

At the time of firm’s dissolution, if realised value of intangible asset is not given, the realised value will be taken as ______.

At the time of dissolution, if realised value of tangible asset is not given, it will be taken as realised at ______.

Avaya, Mitansh and Praveen were partners in a firm. On 31st March, 2023, the firm was dissolved. Creditors took over furniture of book value of ₹ 50,000 at ₹ 45,000 in part settlement of their amount of ₹ 60,000. The balance amount was paid to them through cheque. The amount paid through cheque will be ______.

Lata, Mehu and Namita were partners in a firm sharing profits and losses in the ratio of 3 : 2 : 1. They decided to dissolve the firm on 31st March, 2023. Creditors took over stock of book value of ₹ 80,000 at 80% in part settlement of their amount of ₹ 90,000. The balance amount was paid to the creditors by cheque. The amount paid by cheque to the creditors will be ______.

Investments of ₹ 2,00,000 were not shown in the books. One of the creditors took these investments in settlement of his debt of ₹ 2,20,000. How much amount will be payable to that creditor?

On the dissolution of the partnership firm of Gauri and Gaurav, Building appeared in the books at ₹ 21,00,000. One-third of the Building was taken by Gaurav at 20% discount and the remaining was sold at 10% profit. The value at which the Building was taken over by Gaurav was ______.

On dissolution of the firm, sundry assets were of ₹ 1,17,000. Mohan took part of sundry assets at ₹ 72,000 (being 10% less than the book value). Sohan took the remaining sundry assets at 80% of the book value. The Realisation Account is to be credited with ______.

Creditors in Balance Sheet before dissolution were ₹ 2,50,000. Half of the creditors accepted furniture of ₹ 1,50,000 at 10% less than the bookvalue in full settlement oftheir claims. Remaining creditors were paid an availing discount of 5%. The amount that will be debited in the Realisation Account for payment to creditors will be ______.

On dissolution of a partnership firm, if realisation expenses are paid by the firm on behalf of a partner, then such expenses are debited to which of the following account:

Rohit, a partner is to carry out dissolution and he gets ₹ 50,000 as remuneration. Realisation Expenses were ₹ 25,000. Realisation Account will be debited with ______.

The firm paid realisation expenses of ₹ 10,000 on behalf of Nihar, a partner with whom it was agreed at ₹ 25,000. Realisation Expenses came to ₹ 35,000. Realisation Account will be debited by ______.

A firm is dissolved, Pawan, a partner is to carry out dissolution. ₹ 50,000 is fixed as his remuneration excluding Realisation Expenses which were ₹ 25,000, and were paid by Pawan. Pawan’s Capital Account will be credited by ______.

A firm is dissolved, Param, a partner, is to carry out dissolution for which he will get ₹ 5,000, including expenses. Realisation Expenses were ₹ 2,500. The Realisation Account will be debited by ______.

At the time of dissolution, total assets are of ₹ 12,00,000 and outside liabilities are of ₹ 4,80,000. If assets realised 120% and realisation expenses paid were ₹ 16,000, gain or loss on realisation will be ______.

On dissolution of a partnership firm, out of total debtors of ₹ 2,50,000, ₹ 10,000 were not realisable, and the balance realised 70%. In the given case, ______ will be debited by ______.

On dissolution of a partnership firm, furniture appearing in the Balance Sheet was ₹ 2,00,000. 50% of the furniture was taken over by a partner at ₹ 65,000 and balance 50% was sold at 20% less than the book value. The amount debited to bank account was:

Dev, Bhudev and Shamdev were partners in a firm sharing profits equally. On 31st March, 2024, their firm was dissolved. On this date the Bank Account showed a credit balance of ₹ 10,000 and there was a debit balance of ₹ 15,000 in the Cash Account. All payments were settled by cheque. Ravi, a creditor of ₹ 2,000 was not having any Bank Account, therefore he was paid in cash. Afterwards the Cash Account was closed by depositing the balance of cash into the bank. The Journal entry for closing Cash Account will be:

State the order of payment of the following on dissolution of partnership firm:

1. To each partner proportionately what is due to him/her from the firm for advances as distinguished from capital (i.e., Partner’s Loan);
2. To each partner proportionately what is due to him on account of capital; and
3. For the debts of the firm to the outside parties.

Assertion (A): Partner’s personal assets can be applied to pay firm’s debt.

Reason (R): In a partnership firm, partners have unlimited liability.

In the context of the above two statements, which option is correct?

Assertion (A): Loan from a partner is not transferred to Realisation Account.

Reason (R): Loan from a partner is not an outside liability but is paid before repayment of capital.

In the context of the above two statements, which option is correct?

Assertion (A): Loan from a relative of a partner is an outside liability.

Reason (R): It is not transferred to the Realisation Account.

In the context of the above two statements, which option is correct?

Assertion (A): Building is a tangible asset it is shown as realised at book value, if its realised value not given.

Reason (R): Patent is an intangible asset and if its realised value is not given, it is realised at book value.

In the context of the above two statements, which option is correct?

Assertion (A): Dissolution of the firm means the dissolution of the partnership between all the partners of the firm.

Reason (R): Dissolution of the firm means closure of business and therefore means dissolution of the partnership also.

Assertion (A): Amount paid to discharge an unrecorded liability is credited to the Realisation Account.

Reason (R): Payment made to discharge an unrecorded liability is a loss to the firm and therefore is debited to the Realisation Account.

Which of the following statement is/are correct?

1. Dissolution of partnership firm does not result into reconstitution of a firm.
2. At the time of dissolution of partnership firm, assets are realised and liabilities are paid.
3. At the time of dissolution of firm, provision against debtors are transferred to Partners’ Capital Accounts in their profit-sharing ratio.
4. Final payments of the partners on their Capital Accounts are to be paid first at the time of dissolution of firm.

Choose the correct option:

At the time of dissolution Machinery appears at ₹ 10,00,000 and accumulated depreciation for the machinery appears at ₹ 6,00,000 in the balance sheet of a firm. This machine is taken over by a creditor of ₹ 5,40,000 at 5% below the net value. The balance amount of the creditor was paid through bank. By what amount should the bank account be credited for this transaction?

Ramesh, an old customer whose account for ₹ 25,000 was written off as bad debts last year, paid 80% of the amount at the time of dissolution of the firm. The entry to record this transaction will be ______.

On the dissolution of the firm, ______ will be shown as realised at book value, if there is no information regarding the realised value of that asset.

At the time of dissolution of the firm, the partner’s wife’s loan is transferred to ______.

At the time of dissolution of a firm, Creditors are ₹ 70,000; Firm’s Capital is ₹ 1,20,000; Cash Balance is ₹ 10,000. Other assets realised ₹ 1,50,000. Gain/Loss in the realisation account will be:

Shiv, one of the partners was to receive 2% of the value of net assets realised as remuneration for completing the dissolution work and was to bear realisation expenses. Realisation expenses of ₹ 2,500 were paid by Shiv. The assets (excluding Cash at Bank ₹ 7,500) were realised for ₹ 3,75,000 and cash paid to outside liabilities amounted to ₹ 1,00,000. Realisation Account for remuneration to Shiv is to be debited with ______.

After transferring liabilities like creditors and bills payable in the Realisation Account, in the absence of any information regarding the payment, such liabilities are treated as ______.

Manoj and Sanjeev are partners in a firm sharing profits and losses in the ratio of 2 : 3. They decide to dissolve the firm. On the date of dissolution of firm, Manoj’s Loan to the firm was ₹ 1,50,000 whereas Sanjeev’s wife’s loan was ₹ 1,80,000. The cash available with the firm is ₹ 1,20,000. How this amount will be paid?

Sanjay, a partner of a dissolved firm, was to get 1% of the value of assets realised as his remuneration and 10% of the amount distributed to the partners. Sundry assets realised ₹ 2,50,000, cash in hand was ₹ 2,500 and creditors to be paid ₹ 1,12,500.

Calculate Sanjay’s remuneration and pass the necessary journal entry for remuneration.

Ashish and Neha were partners in a firm sharing profits and losses in the ratio of 4 : 3. They decided dissolve the firm on 1st May, 2026.

From the information given below, complete the Realisation Account, Partners’ Capital Accounts and Bank Account:

L, T and D are partners in a firm sharing Profits and Losses in the ratio of 4 : 3 : 2. Balance Sheet of the firm as on 31st March, 2026 was as follows:

On 1st April, 2026, they decided to dissolve their partnership, as it cannot be carried on except at a loss and following terms and conditions were agreed upon:

1. Half of the Stock expired and sold at 20% Discount and T took over remaining stock at half the price.
2. Bad Debts were ₹ 25,000 and Debtors realised at a Discount of 20%.
3. Sundry Creditors accepted Machinery at Book Value and paid the balance.
4. Building realised ₹ 1,40,000.
5. L took goodwill of the firm at a value of ₹ 54,000.
6. Realisation expenses were ₹ 17,200 met by D and liability for Workmen Compensation was ₹ 45,000.

A. How is Workmen Compensation Reserve treated in this situation?

1. Workmen Compensation Reserve (₹ 63,000) is distributed among the partners in their profit-sharing ratio.
2. Workmen Compensation Reserve (₹ 63,000) is distributed among the partners in their profit-sharing ratio and liability for Workmen Compensation (₹ 45,000) is transferred (credited) to Realisation Account.
3. Amount equal to liability (₹ 45,000) is transferred (credited) to Realisation Account and the balance amount of Workmen Compensation Reserve (₹ 18,000) is transferred (credited) to Capital Accounts of partners in their profit-sharing ratio.
4. Total amount of Workmen Compensation Reserve (₹ 63,000) is transferred (credited) to Realisation Account.

B. Debtors Realised

1. ₹ 76,000
2. ₹ 33,500
3. ₹ 96,000
4. ₹ 72,700

C. Assets Realised

1. ₹ 2,30,000
2. ₹ 3,04,000
3. ₹ 2,57,900
4. ₹ 2,62,700

D. Total amount paid to outside parties by the firm is

1. ₹ 1,65,000
2. ₹ 83,500
3. ₹ 1,62,700
4. ₹ 82,000

X and Y are partners in a firm sharing profits in the ratio of 3 : 2. Mrs. X has given loan of ₹ 5,00,000 to the firm and the firm also took loan of ₹ 2,50,000 from Y. The firm was dissolved and its assets were realised for ₹ 6,25,000. State the order of payment of Mrs. X’s loan and Y’s loan with reason, if there were no other creditors of the firm.

Ajay and Vijay were partners sharing profits and losses in the ratio of 3 : 2. The firm was dissolved on 31st March, 2026 and the following balances were appearing in the books of the firm:

What journal entry will be passed when the unrecorded furniture of ₹ 20,000 is taken by Sanjay, a partner, for ₹ 15,000 on the dissolution of the firm?

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.

Pass the Journal entry when an unrecorded liability of ₹ 15,000 is settled at ₹ 10,000 and paid by X, a partner on the dissolution of a firm?

Pass a journal entry if a machine having a book value of ₹ 15,000 is given to Rakesh, a creditor of ₹ 22,000 for ₹ 12,000 against his dues?

Pass journal entries in the following cases?

1. Expenses of realisation ₹ 600 to be borne by the firm and are paid by Harsh, a partner.
2. Mohan, one of the partners of the firm, was asked to carry out the dissolution of the firm for which he was allowed a salary of 20,000. Expenses for dissolution were ₹ 5,000.
3. Motor car of book value ₹ 50,000 taken by a creditor for ₹ 40,000 in settlement.

[Hint: (c) Entry will not be passed for asset taken by creditor.]

Record necessary journal entries in the following cases:

1. Creditors of ₹ 85,000 accepted ₹ 40,000 as cash and Investment worth ₹ 43,000, in full settlement of their claim.
2. Creditors were ₹ 16,000. They accepted Machinery valued at ₹ 18,000 in settlement of their claim.
3. Creditors were ₹ 90,000. They accepted Building valued at ₹ 1,20,000 and paid cash to the firm ₹ 30,000.

Hints:

1. Dr. Realisation A/c and Cr. Cash A/c by ₹ 40,000.
2. No Entry.
3. Dr. Cash A/c and Cr. Realisation A/c by ₹ 30,000.

Pass journal entries for the following:

1. Firm agreed to pay Alok ₹ 7,500 towards dissolution expenses. Dissolution expenses were ₹ 10,000, which were paid by the firm.
2. Realisation expenses were ₹ 5,000. It was agreed that the firm will bear ₹ 2,000 and the balance by Ravi, a partner.
3. Dissolution expenses of ₹ 10,000 were paid by Amit, a partner, on behalf of the firm.
4. Realisation expenses up to ₹ 6,000 was agreed by the firm to reimburse Ajay. Dissolution expenses were ₹ 7,000.

[Hint: (d) Realisation Account will be debited by 6,000.]

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.

Simar, Raja and Rita were partners in a firm sharing profits and losses in the ratio of 2 : 2 : 1. The firm was dissolved on 31st March, 2019. After the transfer of assets (other than cash) and external liabilities to the Realisation Account, the following transactions took place:

1. A debtor whose debt of 90,000 had been written off as bad, paid 88,000 in full settlement.
2. Creditors to whom ₹ 1,21,000 were due to be paid, accepted stock at 71,000 and the balance was paid to them by a cheque.
3. Raja had given a loan to the firm of ₹ 18,000. He was paid ₹ 17,000 in full settlement of his loan.
4. Investments were ₹ 53,000 out of which investments of ₹ 43,000 were taken by Simar at ₹ 52,000 and the balance of the investments were sold for ₹ 12,000.
5. Expenses on dissolution amounted to ₹ 19,000 and the same were paid by the firm.
6. Profit on dissolution amounted to 30,000.

Pass the necessary Journal entries for the above transactions in the books of the firm.

Hints:

1. Dr. Bank/Cash A/c and Cr. Realisation A/c by ₹ 88,000.
2. Dr. Realisation A/c and Cr. Bank A/c by ₹ 50,000 each.
3. Dr. Raja’s Loan A/c by ₹ 18,000; Cr. Bank/Cash A/c by ₹ 17,000 and Realisation A/c by ₹ 1,000. Alternatively:
   1. Dr. Raja’s Loan A/c and Cr. Bank/Cash A/c by ₹ 17,000 each.
   2. Dr. Raja’s Loan A/cand Cr. Realisation A/c by ₹ 1,000 each.
4. Dr. Simar’s Capital A/c by ₹ 52,000 and Cash/Bank A/c by ₹ 12,000; Cr. Realisation A/c by ₹ 64,000.
5. Dr. Realisation A/c and Cr. Cash/Bank A/c by ₹ 19,000 each.
6. Dr. Realisation A/c by ₹ 30,000; Cr. Simar’s Capital A/c by ₹ 12;000; Raja’s Capital A/c by ₹ 12,000 and Rita’s Capital A/c by ₹ 6,000.

Pass necessary Journal entries to record the following unrecorded assets and liabilities in the books of Paras and Priya:

1. There was an old furniture in the firm which had been written off completely in the books. This was sold for ₹ 3,000.
2. Ashish, an old customer whose account for ₹ 1,000 was written off as bad in the previous year, paid 60%, of the amount.
3. Paras agreed to takeover the firm's goodwill (not recorded in the books of the firm), at a valuation of ₹ 30,000.
4. There was an old typewriter which had been written off completely from the books. It was estimated to realise ₹ 400. It was taken by Priya at an estimated price less 25%.
5. There were 100 shares of ₹ 10 each in Star Limited acquired at a cost of ₹ 2,000 which had been written-off completely from the books. These shares are valued @ ₹ 6 each and divided among the partners in their profit-sharing ratio.

Hints:

1. Dr. Cash/Bank A/c and Cr. Realisation A/c by ₹ 3,000.
2. Dr. Cash/Bank A/c and Cr. Realisation A/c by ₹ 600.
3. Dr. Paras’s Capital A/c and Cr. Realisation A/c by ₹ 30,000.
4. Dr. Priya’s Capital A/c and Cr. Realisation A/c by ₹ 300.
5. Dr. Paras’s Capital A/c and Priya’s Capital A/c by ₹ 300 each; Cr. Realisation A/c by ₹ 600.

Pass Journal entries for the following at the time of dissolution of the firm of X and Y after the assets (other than cash) and outside liabilities have been transferred to the Realisation Account:

1. Sale of Assets – ₹ 50,000.
2. Payment of Liabilities ₹ 10,000.
3. A commission of 5% was allowed to X, a partner, on sale of assets.
4. Realisation expenses were ₹ 15,000. The firm had agreed with X, to reimburse him ₹ 10,000.
5. The firm was required to pay ₹ 5,000 as compensation to an employee for an injury suffered, which was a contingent liability not accepted by the firm.
6. Z, a debtor, whose account of ₹ 6,000 was written off as bad earlier, paid 60% of the amount.
7. Investment (Book Value ₹ 10,000) realised at 150%.
8. Realisation expenses were ₹ 10,000. The firm had agreed with Y, a partner, to reimburse him up to ₹ 7,500.

Hints:

(e) Dr Realisation A/c and Cr. Bank A/c by ₹ 5,000;

(h) Realisation Account will be debited by ₹ 7,500.

Pass the necessary journal entries for the following transactions, on the dissolution of a partnership firm of Kavita and Suman on 31^st March, 2022, after the various assets (other than cash) and third party liabilities have been transferred to Realisation Account.

1. Kavita took over stock amounting to ₹ 1,00,000 at ₹ 90,000.
2. Creditors of ₹ 2,00,000 took over Plant and Machinery of ₹ 3,00,000 in full settlement of their claim.
3. There was an unrecorded asset of ₹ 23,000 which was taken over by Suman at ₹ 17,000.
4. Realisation expenses ₹ 2,000 were paid by Kavita.
5. Bank loan ₹ 21,000 was paid off.
6. Loss on dissolution amounted to ₹ 7,000.

Aman and Harsh, partners in a firm, dissolved their firm. Pass necessary Journal entries for the following after assets (other than Cash and Bank) and outside liabilities had been transferred to Realisation Account:

1. Furniture existed in the book at ₹ 50,000.Aman took 50% of the furniture at 10% discount.
2. Profit & Loss Account had credit balance of ₹ 15,000 on the date of dissolution.
3. Harsh’s loan of ₹ 6,000 was settled by paying ₹ 5,500.
4. Firm paid realisation expenses of ₹ 5,000 on behalf of Harsh, a partner.
5. There was a cheque for ₹ 1,200 under discount. The cheque was received from Soham who became insolvent, and a first and final dividend of 25% was received from his estate.
6. Creditors of ₹ 6,000, accepted stock of ₹ 5,000 at a discount of 5% and the balance in cash.

Hint: (a) Balance furniture of ₹ 25,000 will be realised at book value being a tangible asset.

The partners Rohit, Kunal and Sarthak decided to dissolve their firm. Pass necessary Journal entries for the following after various assets (other than Cash and Bank) and outside liability had been transferred to Realisation Account:

1. Kunal agreed to pay his wife’s loan of 60,000.
2. Total Creditors of the firm were ₹ 40,000. Creditors of ₹ 10,000 were given part of furniture of book value ₹ 8,000 out of the total furniture of book value ₹ 28,000 in settlement. Remaining Creditors allowed a discount of 10%.
3. Rohit had given a loan of ₹ 70,000 to the firm for which ₹ 68,000 were paid in settlement.
4. A machine which was not recorded in the books was taken by Kunal at ₹ 3,000, whereas its expected value was ₹ 5,000.
5. The firm had stock of ₹ 2,40,000, 25% of the stock was taken over by an unrecorded creditor of ₹ 70,000 in full settlement of his claim and the remaining stock was taken over by Rohit at 80% of cost.
6. Sarthak paid the realisation expenses of ₹ 16,000 and was to be paid ₹ 15,000, including expenses for completing the dissolution process.

Hints:

(b) (i) Dr. Bank A/c and Credit Realisation A/c by ₹ 20,000.

(ii) Dr. Realisation A/c and Cr. Bank A/c by ₹ 27,000.

(c) Dr Loan by Rohit A/c by ₹ 70,000 Cr; Bank A/c by ₹ 68,000 and Realisation A/c by ₹ 2,000.

(e) Dr. Rohit’s Capital A/c and Cr. Realisation A/c by ₹ 1,44,000.

(f) Dr. Realisation A/c and Cr. Sarthak’s Capital A/c by ₹ 15,000.

Pass necessary Journal entries for the following transactions on the dissolution of a firm after various assets (other than cash) and outside liabilities have been transferred to Realisation Account:

1. Realisation expenses of the firm amounting to ₹ 2,600 were paid by partner Aman.
2. A creditor of ₹ 4,500 took over stock valued at ₹ 5,200 in full settlement.
3. An unrecorded asset realised ₹ 3,500.
4. Remaining creditors amounting to ₹ 20,000 were paid at a discount of 5%.
5. Remaining stock of ₹ 30,000 was taken over by Bimal, a partner, at a discount of 20%.
6. Investment whose face value was ₹ 10,000 was realised at 40%.

Hints:

1. Dr. Realisation A/c and Cr. Aman’s Capital A/c by ₹ 2,600.
2. No Entry.
3. Dr. Cash/Bank A/c and Cr. Realisation A/c by ₹ 3,500.
4. Dr. Realisation A/c and Cr. Cash/Bank A/c by ₹ 19,000.
5. Dr. Bimal’s Capital A/c and Cr. Realisation A/c by ₹ 24,000.
6. Dr. Cash/Bank A/c and Cr. Realisation A/c by ₹ 4,000.

Pass the necessary journal entries for the following transactions on the dissolution of the partnership firm of Tina and Rina after the various assets (other than cash and bank) and external liabilities have been transferred to realisation account:

1. There was an outstanding bill for repairs for which ₹ 20,000 were paid.
2. The firm had stock of ₹ 80,000. Tina took over 50% of the stock at a discount of 20% while the remaining stock was sold off for ₹ 52,000.
3. The firm had 100 shares of ₹ 10 each which were taken over by the partners at market value of ₹ 20 per share in their profit sharing ratio of 3 : 2.
4. Realisation expenses of ₹ 4,000 were paid by Rina.
5. Tina had given a loan of ₹ 40,000 to the firm which was duly paid.
6. Rina agreed to pay off her husbands loan of ₹ 10,000 at a discount of 10%.

Hints:

1. Dr. Realisation A/c and Cr. Bank/Cash A/c by ₹ 20,000.
2. Dr. Tina’s Capital A/c by ₹ 32,000 and Bank A/c by ₹ 52,000; Cr. Realisation A/c by 84,000.
3. Dr. Tina’s Capital A/c by ₹ 1,200 and Rina’s Capital A/c by ₹ 800; Cr. Realisation A/c by ₹ 2,000.
4. Dr. Realisation A/c and Cr. Rina’s Capital A/c by ₹ 4,000.
5. Dr. Loan by Tina A/c and Cr. Bank A/c by ₹ 40,000.
6. Dr. Realisation A/c and Cr. Rina’s Capital A/c by ₹ 9,000.

Pass necessary journal entries on the dissolution of a firm in the following cases:

Dharam, a partner, was appointed to look after the process of dissolution at a remuneration of ₹ 12,000. Dissolution expenses were to be borne by the firm. Dissolution expenses of ₹ 11,000 were paid by Dharam.

Jay, a partner, was appointed to look after dissolution and was to be paid ₹ 15,000, including dissolution expenses. Dissolution expenses of ₹ 16,000 were paid by Vijay, another partner on behalf of Jay.

Deepa, a partner, was to handle dissolution, and for this work she was to be paid ₹ 7,000, including dissolution expenses. Dissolution expenses of ₹ 6,000 were paid from the firm's bank account.

Dev, a partner, agreed to do the work of dissolution for ₹ 7,500. He took stock of the same value as his remuneration. The stock had already been transferred to the Realisation Account.

Jeev, a partner, agreed to do the work of dissolution for which he was allowed ₹ 10,000. He agreed to bear the dissolution expenses. Actual dissolution expenses paid by Jeev were ₹12,000. These expenses were paid by Jeev by drawing cash from the firm.

Hints:

1. Dr. Realisation A/c and Cr. Dharam’s Capital A/c by ₹ 23,000.
2. 1. Dr. Realisation A/c and Cr. Jay’s Capital A/c by ₹ 15,000.
   2. Dr. Jay’s Capital A/c and Cr. Vijay’s Capital A/c by ₹16,000.
3. 1. Dr. Realisation A/c and Cr. Deepa’s Capital A/c by ₹ 7,000.
   2. Dr. Deepa’s Capital A/c and Cr. Bank A/c by ₹ 6,000.
4. No Entry.
5. 1. Dr. Realisation A/c and Cr. Jeev’s Capital A/c by ₹ 10,000.
   2. Dr. Jeev’s Capital A/c and Cr. Cash A/c by ₹ 12,000.

Pass the necessary Journal entries for settlement of loan by partner at the time of dissolution of firm under each of the following cases:

Case 1. Loan from Shiv (a partner) ₹ 1,00,000 and balance in his Capital Account (Credit) ₹ 1,75,000.

Case 2. Loan from Shiv (a partner) ₹ 1,00,000 and balance in his Capital Account (Debit) ₹ 80,000.

Case 3. Loan from Shiv (a partner) ₹ 1,00,000 and balance in his Capital Account (Debit) ₹ 1,37,500.

Hints:

1. Dr. Loan from Shiv A/c and Cr. Bank A/c by ₹ 1,00,000.
   Note: Shiv’s Capital A/c has a credit balance, so the loan will be paid before payment of his capital.
2. Dr. Loan from Shiv A/c by ₹ 1,00,000 and Cr. Shiv’s Capital A/c by ₹ 80,000 and Bank A/c by ₹ 20,000.
3. Dr. Loan from Shiv A/c by ₹ 1,00,000 and Bank A/c by ₹ 37,500; Cr. Shiv’s Capital A/c by ₹ 1,37,500.

Madhur and Neeraj were partners in a firm sharing profits and losses in the ratio of 3 : 2.The Balance Sheet as at 31st March, 2024 was as under:

The firm was dissolved on the above date, and the following transactions took place:

1. Machinery was taken over by creditors in full settlement of their account.
2. Investments were taken over by Neeraj at ₹ 5,00,000.
3. One of the debtors of ₹ 1,00,000 was untraceable. Remaining debtors were realised at 10% less.
4. Stock was taken over by Madhur at 50% discount.
5. Realisation expenses amounting to ₹ 1,00,000 were paid by Madhur.

Prepare Realisation Account.

C, D and E were partners in a firm sharing profits in the ratio of 3 : 1 : 1. Their Balance Sheet as at 31st March, 2022, was as follows:

On the above date, the firm was dissolved due to certain disagreement among the partners:

1. Machinery of ₹ 3,00,000 were given to creditors in full settlement of their account and remaining machinery was sold for ₹ 10,000.
2. Investments realised ₹ 2,90,000.
3. Stock was sold for ₹ 1,80,000.
4. Debtors for ₹ 20,000 proved bad.
5. Realisation expenses amounted to ₹ 10,000. Prepare Realisation Account.

Ramesh and Umesh were partners in a firm sharing profits in the ratio of their capitals. On 31st March, 2026, their Balance Sheet was as follows:

On the above date the firm was dissolved.

1. Ramesh took over 50% of stock at ₹ 10,000 less than book value.
2. Furniture was taken over by Umesh for ₹ 50,000 and machinery was sold for ₹ 4,50,000.
3. Creditors were paid in full.
4. There was an unrecorded bill for repairs for ₹ 1,60,000 which was settled at ₹ 1,40,000.

Prepare Realisation Account.

Hints:

1. Balance Stock (₹ 65,000) will be realised at Book Value, being tangible asset.
2. Debtors will be realised at book value, i.e., ₹ 2,40,000.

Pradeep and Paresh partners in a firm, decided to dissolve their partnership firm on 1st April, 2026. Pradeep was deputed to realise the assets and to pay off the liabilities. He was paid ₹ 10,000 as commission for his services. Balance Sheet of the firm on 31st March, 2026, was as follows:

The following terms and conditions were agreed upon:

1. Pradeep agreed to pay his wife’s loan.
2. Investment was given to Paresh for ₹ 27,000.
3. Building realised ₹ 3,50,000.
4. Creditors were to be paid after two months; they were paid immediately at 10% p.a. discount.
5. Realisation expenses were ₹ 2,500.

Prepare Realisation Account.

Ashish and Kanav were partners in a firm sharing profits and losses in the ratio of 3 : 2. On 31st March, 2026 their Balance Sheet was as follows:

On the above date, they decided to dissolve the firm.

1. Ashish agreed to take over furniture at ₹ 38,000 and pay Mrs. Ashish’s loan.
2. Sundry Debtors realised ₹ 18,500 and the plant realised 10% more.
3. Kanav took over 40% ofthe stock at 20% less than the book value. Remaining stock was sold at a gain of 10%.
4. Sundry Creditors took over investments in full settlement.
5. Kanav agreed to take over the responsibility of completing dissolution at an agreed remuneration of ₹ 12,000 and to bear realisation expenses. Actual expenses of realisation amounted to ₹ 8,000.

Prepare Realisation Account.

A, B and C were partners sharing profits and losses in the ratio of 2 : 2 : 1. Their Balance Sheet as at 31st March, 2026 was as follows:

On the above date, they dissolved the firm and following amounts were realised:

Fixed Assets ₹ 6,75,000; Stock ₹ 3,39,000; Debtors ₹ 1,35,000; Creditors were paid ₹ 1,85,000 in full settlement of their claim. Expenses on realisation amounted to ₹ 19,000.

Pass the necessary Journal entries on the dissolution of the firm.

Mike and Ajay are partners sharing profits and losses in ratio of the capitals. They decided to dissolve their firm on 31st March, 2026, the date on which the Balance Sheet stood as under:

Following additional information is given:

Sundry assets realised ₹ 14,00,000 and the liabilities were discharged as follows:

1. Creditors due on 31st May, 2026, were paid at a discount of 3% per annum.
2. Bills Payable were discharged at a rebate of ₹ 1,000.
3. Workmen Compensation Claim of ₹ 40,000 was met.
4. Expenses of dissolution amounting to ₹ 30,000 were paid.

You are required to prepare:

1. Realisation Account.
2. Partners’ Capital Accounts.

Arnab, Ragini and Dhrupad are partners sharing profits in the ratio of 3: 1 : 1. Last year, conflicts arose due to certain issues of disagreements and on 31st March, 2026, they decided to dissolve the firm. On that date their Balance Sheet was as under:

The assets were realised and the liabilities were paid as under:

1. Arnab agreed to pay his brother’s loan.
2. Investments realised 20% less.
3. Creditors were paid at 10% less.
4. Building was auctioned for ₹ 3,55,000. Commission on auction was ₹ 5,000.
5. 50% of the stock was taken over by Ragini at market price which was 20% less than the book value and the remaining was sold at market price.
6. Dissolution expenses were ₹ 8,000 ₹ 3,000 were to be borne by the firm and the balance by Dhrupad. The expenses were paid by him.

Prepare Realisation Account and Partners' Capital Accounts.

Bale and Yale are equal partners of a firm. They decide to dissolve their partnership on 31st March, 2026 at which date their Balance Sheet stood as:

​(a) The assets realised were:
Stock ₹ 22,000; Debtors ₹ 7,500; Machinery ₹ 16,000; Building ₹ 35,000.
(b) Yale took over the Furniture at ₹ 9,000.
(c) Bale agreed to accept ₹ 2,500 in full settlement of his Loan Account.
(d) Dissolution Expenses amounted to ₹ 2,500.
Prepare the:
(i) Realisation Account; (ii) Capital Accounts of Partners;
(iii) Bale's Loan Account; (iv) Bank Account.

A and B are partners in a firm sharing profits and losses in the ratio of 3 : 2. On 31st March, 2026, their Balance Sheet was as follows:

The firm was dissolved on 31st March, 2026 and both the partners agreed to the following:
(a) A took Investments at an agreed value of ₹ 8,000. He also agreed to settle Loan by Mrs.A..
(b) Other assets realised as: Stock − ₹ 5,000; Debtors  − ₹ 18,500; Furniture  − ₹ 4,500; Plant  − ₹ 25,000.
(c) Expenses of realisation came to ₹ 1,600.
(d) Creditors agreed to accept ₹ 37,000 in full settlement of their claims.
Prepare Realisation Account, Partners' Capital Accounts and Bank Account.

A, B and C were equal partners. On 31st March, 2026, their Balance Sheet stood as:

The firm was dissolved on the above date on the following terms:
(a) For the purpose of dissolution, Investments were valued at ₹ 18,000 and A took over the Investments at this value.
(b) Fixed Assets realised ₹ 29,700 whereas Stock and Debtors realised ₹ 80,000.
(c) Expenses of realisation amounted to ₹ 1,300.
(d) Creditors allowed a discount of ₹ 800.
(e) A post-dated chequee for ₹ 1,500 under discount was dishonoured as the acceptor had become insolvent and was unable to pay and hence the firm paid the bank.
Prepare Realisation Account, Partner's Capital Accounts and Cash Account showing how the accounts would finally be settled among the partners.

Shilpa, Meena and Nanda decided to dissolve their partnership on 31st March, 2026. Their profit-sharing ratio was 3 : 2 : 1 and their Balance Sheet was as under:

BALANCE SHEET OF SHILPA, MEENA AND NANDA as at 31st March, 2019

It is agreed as follows:

The stock of value of ₹ 41,660 are taken over by Shilpa for ₹ 35,000 and she agreed to discharge the bank loan. The remaining stock was sold at ₹ 14,000 and debtors amounting to ₹ 10,000 realised ₹ 8,000. Land is sold for ₹ 1,10,000. The remaining debtors realised 50% at their book value. Cost of realisation amounted to ₹ 1,200. There was a typewriter not recorded in the books worth of ₹ 6,000 which were taken over by one of the Creditors at this value.

Prepare Realisation Account, Partners' Capital Accounts, and Cash Account to close the books of the firm.

Michael, Jackson and John are in partnership sharing profits and losses in the proportions of `1/2, 1/3 and 1/6`respectively. On 31st March, 2026, they decide to dissolve the firm. On this date, the Balance Sheet stood as:

During the realisation process, a liability under a suit for damages is settled at ₹ 20,000 as against ₹ 5,000 provided for in the books of the firm.

Land and Building were sold for ₹ 40,000 and the Stock and Sundry Debtors realised ₹ 30,000 and ₹ 42,000 respectively. The expenses of realisation amounted to ₹ 1,200.

There was a car in the firm, which was written off from the books. It was taken by Michael for ₹ 20,000. He also agreed to pay Outstanding Salary of ₹ 20,000 not provided in books.

Prepare Realisation Account, Partners’ Capital Accounts and Bank Account in the books of the firm.

Prashant and Rajesh are partners in a firm sharing profits and losses in the ratio of 3 : 2. On 31st March, 2026, their Balance Sheet was:

On that date, the partners decide to dissolve the firm. Prashant took Investments for ₹ 35,000. Other assets were realised as follows:

Sundry Debtors: Full amount. The firm could realise Stock at 15% less and Building was sold at ₹ 1,00,000. Compensation to employees paid by the firm was ₹ 10,000. This liability was not provided for in the above Balance Sheet.

You are required to close the books of the firm by preparing Realisation Account, Partners’ Capital Accounts and Bank Account.

Yogesh and Naresh were partners sharing profits equally. They dissolved the firm on 1st April, 2026. Naresh was assigned the responsibility to realise the assets and pay the liabilities at a remuneration of ₹ 10,000 including expenses. Balance Sheet of the firm as on that date was as follows:

The firm was dissolved on the following terms:

1. Yogesh was to pay his wife’s loan.
2. Debtors realised ₹ 60,060.
3. Naresh was to take investments at an agreed value of ₹ 26,000.
4. Sundry Creditors were payable after two months but were paid immediately at a discount of 15% p.a.
5. A Debtor previously written off as Bad Debt paid ₹ 16,670.
6. An unrecorded asset realised ₹ 10,000.

Prepare Realisation Account, Partners’ Capital Accounts, Partner’s Loan Account and Cash/Bank Account.

Rita and Sobha are partners in a firm, Fancy Garments Exports, sharing profits and losses equally. On 1st April, 2026, the Balance Sheet of the firm was:

The firm was dissolved on the date given above. The following transactions took place:

1. Rita took 25% of the Stock at a discount of 20% in settlement of her loan.
2. Sundry Debtors realised ₹ 54,000.
3. Sundry Creditors were paid at a discount of 10%.
4. Land and Building realised ₹ 1,20,000.
5. Rita took the goodwill of the firm at a value of ₹ 30,000.
6. An unrecorded asset of ₹ 6,900 was given in settlement of unrecorded liability of ₹ 6,000 in full settlement.
7. Realisation expenses were ₹ 5,250.
8. A loan to Sobha was received.

Show the Realisation Account, Partners’ Capital Accounts and Bank Account in the books of the firm.

Raina and Meena were partners in a firm which they dissolved on 31st March, 2026. On this date, Balance Sheet of the firm, apart from realisable assets and outside liabilities were as follows:

On the date of dissolution of the firm:

1. Raina’s loan was repaid by the firm along with interest of ₹ 500.
2. Dissolution expenses of ₹ 1,000 were paid by the firm on behalf of Raina.
3. An unrecorded asset of ₹ 2,000 was taken by Meena while Raina paid an unrecorded liability of ₹ 3,000.
4. Dissolution resulted in a loss of ₹ 60,000 from the realisation of assets and settlement of liabilities.

You are required to prepare Partners’ Capital Accounts.

There are two partners, Angad and Raman in a firm and their capitals are ₹ 50,000 and ₹ 40,000. The creditors are ₹ 30,000. The assets of the firm realise ₹ 1,00,000.

How much will Angad and Raman receive?

A, B and C were partners sharing profits in the ratio of 5 : 3 : 2. On 31st March, 2026, A’s Capital and B’s Capital were ₹ 30,000 and ₹ 20,000, respectively, but C owed ₹ 5,000 to the firm. The liabilities were ₹ 20,000. The assets of the firm realised ₹ 50,000. 
Prepare Realisation Account, Partner’s Capital Accounts and Bank Account.

A and B were partners sharing profits and losses as to `7/11`th to A and `4/11`th to B. They dissolved the partnership on 30th May, 2026. As on that date their capitals were: A ₹ 7,000 and B ₹ 4,000. There were also due on Loan A/c to A ₹ 4,500 and to B ₹ 750. The other liabilities amounted to ₹ 5,000. The assets proved to have been undervalued in the last Balance Sheet and actually realised ₹ 24,000.
Prepare necessary accounts showing the final settlement between partners.

Ramu, Laxman and Bharat started business on 1st April, 2025 with capitals of ₹ 1,00,000, ₹ 80,000 and ₹ 60,000 respectively sharing profits and losses in the ratio of 4 : 3 : 3. For the year ending 31st March, 2026, the firm incurred loss of ₹ 50,000. Each of the partners withdrew ₹ 10,000 during the year.

On hand 1st was April, 2026, the firm was dissolved. Sundry Creditors of the firm were ₹ 24,000 on that date and cash in 4,000. Assets realised ₹ 3,00,000 and creditors were paid ₹ 23,500 in settlement of their claims.

Prepare Realisation Account and show your working clearly.

A, B and C started business on 1st April, 2025 with capitals of ₹ 1,00,000; ₹ 80,000 and ₹ 60,000 respectively sharing profits (losses) in the ratio of 4 : 3 : 3. For the year ended 31st March, 2026, the firm incurred a loss of ₹ 50,000. Each of the partners withdrew ₹ 10,000 during the year.

On 31st March, 2026, the firm was dissolved; the creditors of the firm stood at ₹ 24,000 on that date and Cash in Hand was ₹ 4,000. The assets realised ₹ 3,00,000 and Creditors were paid ₹ 23,500 in full settlement of their claims.

Prepare Realisation Account and show your workings clearly.

Priya, Komal and Rakhi were in partnership sharing profits and losses in the ratio of 2 : 1 : 1. They decided to dissolve the partnership. On that date of dissolution, Sundry Assets (including cash ₹ 5,000) amounted to ₹ 88,000, assets realised ₹ 80,000 (including an unrecorded asset which realised ₹ 4,000). A contingent liability on account of bills discounted ₹ 8,000 was paid by the firm. The Capital Accounts of Priya, Komal and Rakhi showed a balance of ₹ 20,000 each.
Prepare Realisation Account, Partners’ Capital Accounts and Cash Account.

The partnership between A and B was dissolved on 31st March, 2026. On that date the respective credits to the capitals were A − ₹ 1,70,000 and B − ₹ 30,000. ₹ 20,000 were owed by B to the firm; ₹ 1,00,000 were owed by the firm to A and ₹ 2,00,000 were due to the Trade Creditors. Profits and losses were shared in the proportions of `2/3` to A, `1/3` to B.
The assets represented by the above stated net liabilities realise ₹ 4,50,000 exclusive of ₹ 20,000 owed by B. The liabilities were settled at book figures.

Prepare Realisation Account, Partners’ Capital Accounts and Cash Account showing the distribution to the partners.

X and Y were partners sharing profits and losses in the ratio of 3 : 2. They decided to dissolve the firm on 31st March, 2026. On that date, their Capitals were X − ₹ 40,000 and Y − ₹ 30,000. Creditors amounted to ₹ 24,000.
Assets were realised for ₹ 88,500. Creditors of ₹ 16,000 were taken over by X at ₹ 14,000. Remaining Creditors were paid at ₹ 7,500. The cost of realisation was to ₹ 500.
Prepare necessary accounts.

P, Q and R are partners sharing profits and losses in the ratio of 3 : 3 : 2. Their respective capitals are in their profit-sharing proportions. On 1st April, 2025, the total capital of the firm and the balance of General Reserve are ₹ 80,000 and ₹ 20,000 respectively. During the year 2025-26, the firm made a profit of ₹ 28,000 before charging interest on capital @ 5%. The drawings of the partners are P - ₹ 8,000; Q - ₹ 7,000; and R - ₹ 5,000. On 31st March, 2026, their liabilities were ₹ 18,000.

On this date, they decided to dissolve the firm. The assets realised ₹ 1,08,600 and realisation expenses amounted to ₹ 1,800.

Prepare necessary Ledger Accounts to close the books of the firm.

At the time of dissolution of the partnership firm, the firm’s assets are applied first in payment of ______.

On dissolution of the firm, Partners’ Capital Accounts are closed through ______.

Unrecorded assets when taken over by a partner are shown in ______.

Which of the following is not transferred to Realisation Account?

Mohan, a partner is to bear realisation expenses and he was allowed ₹ 10,000 as remuneration and expense. Actual expenses paid by the firm were ₹ 17,500. Mohan’s Capital Account will be ______.

At the time of dissolution of a firm, creditors are ₹ 3,50,000; Firm’s Capital is ₹ 6,00,000; Cash Balance is ₹ 50,000. Other assets realised ₹ 7,50,000. Gain/Loss in the Realisation Account will be ______.

Sundry Assets were of ₹ 1,17,000. Y is to take some Sundry Assets at ₹ 72,000 (being 10% less than the book value). Z is to take remaining sundry assets at 80% of the book value. Realisation Account is to be credited with ______.

Assertion (A): Dissolution of the firm necessarily brings dissolution of the partnership.

Reason (R): Dissolution of partnership would not necessarily involve dissolution of firm.

In the context of the above two statements, which of the following is correct?

Rajesh, an old customer whose account for ₹ 10,000 was written off as bad debts last year, paid 70% of the amount at the time of dissolution of the firm.

The correct entry to record this transaction will be:

Pass the necessary journal entries for the following transactions on dissolution of the firm of Tushar and Paras after the transfer of all assets (Other than cash) and external liabilities to Realisation Account:

1. An unrecorded furniture worth ₹ 28,000 is taken over by Tushar at a discount of 10%.
2. An unrecorded liability of ₹ 18,000 is settled and paid by Paras at a discount of 10%.
3. A machine having a book value of ₹ 30,000 is given to Nitish, a firm’s creditor of ₹ 44,000, at an agreed valuation of 80% towards full and final settlement of his dues.
4. A furniture having a book value of ₹ 30,000 is given to Ashish, a firm’s creditor of ₹ 44,000, at a discount of 20% towards partial payment of his dues.
5. Sachin, a creditor to whom ₹ 20,000 were due, took over computer having a book value of ₹ 30,000 at 80%. Balance was paid by him in cash.
6. Tushar pays the realisation expenses of ₹ 25,000 on behalf of the firm.

Keshav and Pankaj were partners in a firm sharing profits and losses equally. They dissolved their firm on 31st March, 2026:

On this date, the Balance Sheet of the firm, apart from realisable assets and outside liabilities showed the following:

On the date of dissolution of the firm:

1. Keshav’s loan was repaid by the firm along with interest of ₹ 1,250.
2. The dissolution expenses of ₹ 2,500 were paid by the firm on behalf of Keshav who had to bear these expenses.
3. An unrecorded asset of ₹ 5,000 was taken by Pankaj while Keshav discharged an unrecorded liability of ₹ 7,500.
4. The dissolution resulted in a loss of ₹ 1,50,000 from the realisation of assets and settlement of liabilities.

You are required to prepare:

1. Partners’ Capital Accounts
2. Keshav’s Loan Account

Mohan and Mayank are partners sharing profits and losses in the ratio of the capitals. They decided to dissolve their firm on 31st March, 2026, the date on which the Balance Sheet stood as under:

Following additional information is given:

Sundry assets realised ₹ 14,00,000 and the liabilities were discharged as follows:

1. Creditors due on 31st May, 2026, were paid at a discount of ₹ 2,000.
2. Workmen Compensation Claim of ₹ 40,000 was met.
3. Mohan agreed to take over the responsibility of completing dissolution at an agreed remuneration of ₹ 30,000 and to bear realisation expenses. Actual expenses of realisation amounted to ₹ 25,000 were paid by the firm.

You are required to prepare:

1. Realisation Account.
2. Partners’ Capital Accounts.

Following was the Balance Sheet of X, Y and Z on 31st March, 2026:

The firm was dissolved on the above date on the following terms:

1. Debtors realised ₹ 28,000; and Creditors and Bills Payable were paid at a discount of 10%.
2. Stock was taken over by Z for ₹ 15,000 and furniture was sold for ₹ 12,000.
3. Land and Building was sold for ₹ 3,80,000.
4. R’s loan was paid by a cheque for the same amount.

Prepare the Realisation Account, Partners’ Capital Accounts and Bank Account.