Dissolution of Partnership for Class 12 AHSEC/CBSE/B.Com 1st Sem
Q.1. Ram and Shyam share the profits equally.
They decided to dissolve their firm. Their liabilities were : Ram’s Capital Rs.
25,000; Shyam’s Capital Rs. 30,000; Creditors Rs. 12,500; Bills payable
Rs.7,500; Assets of the firm realized Rs.1,00,000. Prepare a Realization
Account.
Q.2. The following is the Balance Sheet of
Anju and Manju sharing profits in the ratio of 3:2 as on December 31, 2003 :
Balance Sheet as at December 31, 2003
|
Liabilities
|
Amount
|
Assets
|
Amount
|
|
Creditors
Loan by
Anju’s brother
Loan by
Manju
General
Reserve
Capitals
:
Anju
Manju
Profit
and Loss
|
19,000
5,000
7,500
1,250
5,000
4,000
2,500
|
Plant
and Machinery
Furniture
and Fixtures
Investment
Stock
Debtors
10,000
Less:
provision 500
Bank
|
14,000
2,000
5,000
3,000
9,500
5,750
|
|
|
41,750
|
|
41,750
|
The firm was dissolved on March 31, 2003. As a
result,
(a)
Anju took over investments at an agreed value
of Rs. 4,000 and agreed to pay loan taken from her brother
(b)
Realization of assets is as follows : Stock
Rs. 2,500, Debtors Rs. 9,250, Furniture and Fixture Rs. 2,250, Plant and Machinery
Rs. 12,500
(c)
Expenses of realization were Rs. 300
(d)
Creditors allowed 2.5% discount in full
settlement. Record necessary journal entries and close the books of the firm.
Q.3. Dinesh, Ramesh and Satish were partners in a firm sharing-profits
in the ratio of 5:3:2. They agreed to dissolve their partnership firm on March
31, 2002. Dinesh was asked to realize the assets and pay off liabilities. He
had to bear the realization expenses for which he was promised a lump sum
amount of Rs. 2,000. Their financial position on that date was as follows :
Balance Sheet as at March 31, 2002
|
Liabilities
|
Amount
|
Assets
|
Amount
|
|
Creditors
Investment
fluctuation fund
Capitals
:
Dinesh
Ramesh
Suresh
|
27,500
9,000
75,000
30,000
16,000
|
Plant
and Machinery
Investment
Stock
Debtors
14,200
Less:
provision 900
Bank
Profit
and losses account
|
60,000
30,000
11,000
13,300
11,200
32,000
|
|
|
1,57,500
|
|
1,57,500
|
Dinesh agreed to purchase investments at Rs.
25,000. Ramesh took over stock at Rs. 10,500 and Debtors at Rs. 11,800. Plant
and Equipment was sold for Rs. 45,000. Unrecorded assets realized cash of Rs.
3,000. Actual realization expenses amounted to Rs. 1,800. Prepare necessary
ledger accounts on the dissolution of firm.
Q.4. Lata, Geeta and Neeta were partners
sharing profits in the ratio of 5:3:1. They decided to dissolve the partnership
on March 31, 2001 and their balance sheet was as under.
Balance Sheet Lata, Geeta and Neeta as
at March 31, 2001
|
Liabilities
|
Amount
|
Assets
|
Amount
|
|
Creditors
Bills
Payable
Mortgage
loan
General
Reserve
Capitals
:
Lata
Geeta
Neeta
|
16,600
3,400
15,000
4,500
22,000
18,000
10,000
|
Plant
and Machinery
Investment
Stock
Debtors 25,000
Less:
provision 5,000
Bank
Deferred
Revenue Expenditure
Suspense
|
30,000
10,000
10,000
20,000
9,500
5,000
5,000
|
|
|
89,500
|
|
89,500
|
There was a typewriter written off which
realised Rs. 500. They had a joint life policy of Rs. 20,000 which was
surrendered for Rs. 5,000. Goodwill was sold for Rs. 5,000. Other assets
realized – stock Rs. 6,700; debtors 50%; plant and machinery 10% less than its
book value. Creditors were paid Rs. 16,000. But an outstanding bill of Rs. 400
for repairs was to be paid off. Expenses on realization amounted to Rs. 620.
Give journal entries to record the above transactions and also prepare
necessary ledger accounts.
Q.5. Following is the Balance Sheet of Raman
and Ramesh on June 30, 2002.
|
Liabilities
|
Amount
|
Assets
|
Amount
|
|
Creditors
Bills
Payable
Bank
overdraft
Mrs.
Raman’s loan
Ramesh’s
loan
Investment
fluctuation fund
Employees
provident fund
Ramesh’s
loan
General
Reserve
Raman’s
Capital
Ramesh’
Capital
|
20,000
20,000
10,000
5,000
5,000
2,800
1,200
10,000
2,000
20,000
20,000
|
Goodwill
Building
Plant
and fitting
Investment
Stock
Debtors
17,000
Less:
provision 2,000
Bills
Receivable
Deferred
Revenue Expenditure
Suspense
|
10,000
25,000
25,000
15,300
8,700
15,000
10,000
2,000
5,000
|
|
|
1,16,000
|
|
89,500
|
The firm was dissolved on June 30, 2002 and
following was the position:
a)
Raman agreed to pay off his wife’s loan.
b)
Debtors realized Rs. 12,000.
c)
Ramesh’s loan transferred to his capital
account.
d)
Ramesh took away all the investments at Rs.
12,000.
e)
Other assets realized as follows : Plant and
Fittings 20,000, Building 50,000, Goodwill 6,000
f)
Sundry creditors and Bills payable were
settled at 5% discount.
g)
Raman accepted stock at Rs 8,000 and Ramesh
took over bills receivable at 20% discount.
h)
Realization expenses amounted to Rs. 2,000.
Record journal entries and also prepare
various ledger accounts.
Q.6. R, M and H were in partnership sharing
profits and losses in the ratio of 8: 5: 3 respectively. The firm’s balance
sheet as on 31st March, 2015 was as under:
Balance Sheet
|
Liabilities
|
(Rs.)
|
Assets
|
(Rs.)
|
|
Capitals
:
R
= 5,000/-
M
= 2,000/-
H
= 1,000/-
Sundry
Creditors
Bank
Loan
|
8,000
2,953
5,500
|
Current
Account :
R = 2,195/-
M =
1,733/-
H = 1,520/-
Machinery
Stock
Sundry
Debtors
Cash
|
5,448
1,050
6,059
3,572
324
|
|
TOTAL
|
16,453
|
TOTAL
|
16,453
|
It was resolved to dissolve the partnership as
on that date. The assets were realised as follows:
|
Machinery
Stock
Sundry Debtors
|
600/-
5,230/-
3,555/-
|
Pass
Journal Entries and necessary ledger Accounts.
Q.7. Kumar and Gaurav are partners sharing
profit and losses as three-fourth and one-fourth. They agreed to dissolve their
firm. On the date of dissolution, they have following Balance sheet: (8) 2012
|
Liabilities
|
Amount
|
Assets
|
Amount
|
|
Capital
Account:
Kumar
40,000
Gaurav
35,000
Creditor
Loan
From Mrs.Gaurav
|
75,000
16,000
13,000
|
Land and
Building
Plant
and machinery
Sundry
Debtors 22,000
Less
reserve 2000
Bills
receivable
Cash in
hand
|
50,000
18,000
20,000
7,500
8,500
|
|
1,04,000
|
1,04,000
|
||
|
|
|
The Assets Realised as follows:
(i) Land and Building Rs.48, 000
(ii) Sundry Debtors Rs.18, 000
(iii) Goodwill Rs.16, 500
Kumar took
over plant and machinery at 5% more than the book value. Gaurav agreed to
discharge his wife’s loan. Creditors are paid Rs.12, 000 in full settlement of
their claim and expenses on realisation amounted to Rs.700. You are required to
show Realisation Account, Cash Account and Capital Accounts of the Partners on
dissolution.
Q.8. Amal
and Bimal are two partners in a firm. They share profits in the ratio of 3:2.
Following is their Balance Sheet as on 31.12.2012 on which date they dissolved
their partnership firm: 2014
Balance
Sheet
|
Liabilities
|
Amount
|
Assets
|
Amount
|
|
Capital:
Amal - 20000
Bimal
– 15000
Reserve
Fund
Creditors
|
35000
5000
20000
|
Fixed
Assets
Stock
Debtors
Cash
Profit
and Loss Account
|
30000
10000
15000
3000
2000
|
|
|
60,000
|
|
60,000
|
Assets are
realised as: Fixed Assets Rs.28000, Stock Rs.8000 and Debtors Rs.13000.
Creditors were paid at a discount of 10%. Expenses of realisation were Rs.1500.
Pass Journal Entries in the books of the firm.
Q.9. A and B are partners sharing profits in
the ratio of 3:2. Their Balance Sheet as on 31.03.14 was as follows: 2015
Balance
Sheet
|
Liabilities
|
Rs.
|
Assets
|
Rs.
|
|
Capital
:
A = 10,000/-
B =
2,000/-
General
Reserve
Sundry
Creditors
|
12,000/-
2,500/-
7,500/-
|
Sundry
Assets
Profit
& Loss A/c
|
17,000/-
5,000/-
|
|
|
22,000/-
|
|
22,000/-
|
The firm
is dissolved on the above date. Assets are realised at Rs. 13,500/-.
Dissolution expenses came to Rs. 250/-. Give journal entries to close the books
of the firm.
Q.10. R, M and H were in partnership sharing
profits and losses in the ratio of 8: 5: 3 respectively. The firm’s balance
sheet as on 31st March, 2015 was as under: 2016
Balance Sheet
|
Liabilities
|
(Rs.)
|
Assets
|
(Rs.)
|
|
Capitals
:
R
= 5,000/-
M
= 2,000/-
H
= 1,000/-
Sundry
Creditors
Bank
Loan
|
8,000
2,953
5,500
|
Current
Account :
R = 2,195/-
M =
1,733/-
H = 1,520/-
Machinery
Stock
Sundry
Debtors
Cash
|
5,448
1,050
6,059
3,572
324
|
|
TOTAL
|
16,453
|
TOTAL
|
16,453
|
It was resolved to dissolve the partnership as
on that date. The assets were realised as follows:
|
Machinery
Stock
Sundry Debtors
|
600/-
5,230/-
3,555/-
|
Prepare
Realisation Account.
Q.11. Akash and Bikash are partners
sharing profits in the ratio of 3:2. Their Balance Sheet as on 31/03/2016 was
as follows: 2017
Balance
Sheet
|
Liabilities
|
(Rs.)
|
Assets
|
(Rs.)
|
|
Capital:
Akash = 12,000/-
Bikash = 8,000/-
General
Reserve
Sundry Creditors
|
20,000
10,000
10,000
|
Sundry
Assets
|
40,000
|
|
|
40,000
|
|
40,000
|
The firm
is dissolved on the above date. Assets are realized at Rs. 60,000/- Dissolution
expenses came to Rs. 2,000/- 5. Pass journal entries.
Q.12. SONU and ASHU were partners sharing
profits in the ratio of 3 : 1. Their Balance Sheet as on 31st March,
2017 was as follows: 2018
Balance Sheet
|
Liabilities
|
(Rs.)
|
Assets
|
(Rs.)
|
|
Creditors
Loan
Capital:
SONU:
50,000/-
ASHU:
50,000/-
|
10,000
20,000
1,00,000
|
Cash at
Bank
Sundry
Assets
Profit
and Loss Account
|
20,000
70,000
40,000
|
|
|
1,30,000
|
|
1,30,000
|
The firm
was dissolved on the above date. The assets were realised at Rs. 50,000/-.
Creditors were paid at a discount of 20%. SONU agreed to pay off the Loan.
Realisation expenses were Rs. 2,000/-. Prepare Realisation Account, Bank
Account and Partners Capital Account.
Q.13. A and B are partners sharing profits
equally, Balance Sheet on September 2018 was as follows: 5
2019
Balance Sheet
|
Liabilities
|
(Rs.)
|
Assets
|
(Rs.)
|
|
Sundry
Creditors
Bills
Payable
Reserve
Fund
Capital:
A 20,000/-
B 20,000/-
|
11,200
1,800
6,000
40,000
|
Sundry
Assets
|
59,000
|
|
|
59,000
|
|
59,000
|
The firm is dissolved on the above date.
Assets are realized at Rs. 49,600. Creditors allowed a discount of 2% and
Dissolution Expenses came to Rs. 544. Give Journal Entries to close the books
of the firm.
Q.14. Dipali and Rajshri were partners in a
firm sharing profits and losses in the ratio of 3 : 2. They decided to dissolve
their firm on 31st December, 2019, when their Balance Sheet was as
under: 5 2020
Balance
Sheet
|
Liabilities
|
Rs.
|
Assets
|
Rs.
|
|
Capital:
Dipali
18,400
Rajshri
10,600
Sundry
Creditors
|
29,000
2,000
|
Land
Investments
Sundry
Debtors
Stock
Cash at
Bank
|
16,000
4,000
2,000
3,000
6,000
|
|
|
31,000
|
|
31,000
|
Investments are sold at Rs. 3,800. Other
assets realised as follows:
a)
Land Rs. 28,000, Sundry Debtors Rs. 1,800,
Stock Rs. 2,800.
b)
Creditors agreed to accept 5% less. Expenses
of realisation amounted to Rs. 400.
Prepare
Realisation A/c, Partners’ Capital A/c and Bank A/c.
