HSC Commerce (Marketing and Salesmanship) 12th Board ExamMaharashtra State Board
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Uday and Prabhakar Are Partners Sharing Profits and Losses in the Proportion of 3/5 and 2/5 Respectively. They Dissolved Their Partnership Firm on 31st March 2012 When Their Financial Position Was as Under - HSC Commerce (Marketing and Salesmanship) 12th Board Exam - Book Keeping and Accountancy

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Question

Uday and Prabhakar are partners sharing profits and losses in the proportion of 3/5 and 2/5 respectively. They dissolved their partnership firm on 31st March 2012 when their financial position was as under
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.

Solution

Journal
Date Particulars L.F. Debit Amount (Rs) Credit Amount (Rs)
 

Realisation A/c              Dr.

    To Debtors A/c

    To Stock A/c

    To Machinery A/c

    To Furniture A/c

(Assets transferred to Realisation Account)

 

2,77,500

 

 

 

 

 

 

67,500

1,35,000

45,000

30,000

 

 

Reserve for Doubtful Debts A/c       Dr.

Sundry Creditors A/c                      Dr.

Uday’s Wife’s Loan A/c                   Dr.

      To Realisation A/c

(Liabilities transferred to Realisation Account)

 

7,500

15,000

30,000

 

 

 

 

 

52,500

 

 

Bank A/c         Dr.

      To Realisation A/c

(Goodwill, Stock and Debtors realised)

 

1,89,000

 

 

 

1,89,000

 

 

Prabhakar’s Capital A/c         Dr.

Uday’s Capital A/c                 Dr.

     To Realisation A/c

(Assets taken over)

 

40,000

30,000

 

 

 

 

70,000

 

 

Realisation A/c                  Dr.

     To Uday’s Capital A/c

(Wife’s loan discharged)

 

30,000

 

 

 

30,000

 

 

Realisation A/c              Dr.

    To Bank A/c

(Creditors and dissolution expenses paid off )

 

18,000

 

 

 

18,000

 

 

Uday’s Capital A/c                      Dr.

Prabhakar’s Capital A/c              Dr.

    To Realisation A/c

(Loss suffered on the realisation)

 

8,400

5,600

 

 

 

 

14,000

 

 

Uday’s Capital A/c            Dr.

Prabhakar’s Capital A/c     Dr.

    To Bank A/c

(Final payment made)

 

1,29,600

44,400

 

 

 

 

1,74,000

 

  Is there an error in this question or solution?

APPEARS IN

 2013-2014 (October) (with solutions)
Question 5.1 | 10.00 marks
Solution Uday and Prabhakar Are Partners Sharing Profits and Losses in the Proportion of 3/5 and 2/5 Respectively. They Dissolved Their Partnership Firm on 31st March 2012 When Their Financial Position Was as Under Concept: Dissolution of Partnership Firm.
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