Dissolution of Partnership Firms Problems and Solutions
[AHSEC Solved Practical Problems 2012 to 2025]
2025
Tarun and Moni are two
equal partners of a business. They decided to dissolve their firm on 31st
March, 2023. Their Balance Sheet on that date was as under:
Balance Sheet
As on 31st March, 2023
|
Liabilities |
Amount (₹) |
Assets |
Amount (₹) |
|
Sundry Creditors |
20,000 |
Cash |
2,000 |
|
Loan from Manash |
5,000 |
Debtors |
20,000 |
|
Capitals : |
Stock |
25,000 |
|
|
Tarun |
30,000 |
Investments |
5,000 |
|
Moni |
20,000 |
Fixed Assets |
23,000 |
|
Total |
75,000 |
Total |
75,000 |
(i) Fixed assets are realised at ₹27,600 and debtors realised at 60% of
book value.
(ii) Investments are taken over by Tarun at book value.
(iii) Sundry Creditors agreed to accept 15% less.
(iv) Stock are realised at ₹40,000.
(v) Expenses on realisation are ₹500.
(vi) An unrecorded printer realised ₹500.
Close the firm's books by preparing a Realisation Account, Partners'
Capital Accounts and Cash Account.
Ans:
Realisation
A/c
|
Particular |
Amount |
Particulars |
Amount |
|
To Debtors To Stock To Investments To Fixed Assets To Cash (Payment of Liabilities) Creditors =
17,000 Loan from Mahesh = 5,000 -
To Cash (Exp) To Profit on realisation -
Tarun = 14,600*1/2 -
Moni = 14,600*1/2 |
20,000 25,000 5,000 23,000 22,000 500 7,300 7,300 |
By S/creditors By Loan from Mahesh By Cash (Realisation of assets) -
Debtors = 12,000 -
Stock = 40,000 -
Fixed Assets =27,600 -
Printer = 500 -
By Tarun’s Capital A/c -
(Investment taken over) |
20,000 5,000 80,100 5,000 |
|
|
1,10,100 |
|
1,10,100 |
Partner’s
Capital A/c
|
|
Tarun |
Moni |
|
Tarun |
Moni |
|
To Realisation A/c (Investment taken over) To Cash (Final Payment) |
5,000 32,300 |
27,300 |
By Balance b/d By Realisation A/c |
30,000 7,300 |
20,000 7,300 |
|
|
37,300 |
27,300 |
|
37,300 |
27,300 |
Cash
A/c
|
Particular |
Amount |
Particulars |
Amount |
|
To Balance b/d To Realisation A/c (Assets Realised) |
2,000 80,100 |
By Realisation A/c (Liabilities paid off) By Realisation A/c (Exp.) By Tarun’s Capital A/c By Moni’s Capital A/c |
22,000 500 32,300 27,300 |
|
|
82,100 |
|
82,100 |
2024
Ravi and Vicky are partners in a firm sharing profits
and losses in the ratio of 3:2. They decided to dissolve their firm on 31st
December, 2022. Their Balance Sheet on that date was as under:
Balance
Sheet
|
Liabilities |
Rs. |
Assets |
Rs. |
|
Capital: Ravi Vicky Creditors Profit and Loss A/c |
17,500 10,000 2,000 1,500 |
Furniture Investment Debtors Stock Cash at Bank |
16,000 4,000 2,000 3,000 6,000 |
|
|
31,000 |
|
31,000 |
Ravi took over the investments at an agreed value of
Rs. 3,800. Other assets were realised as follows:
Furniture = Rs. 18,000
Debtors = 90% of Book Value
Stock = Rs. 2,800
Creditors of the firm agreed to accept 5% less.
Expenses of realisation amounted to Rs. 400. Close the firm’s books by
preparing a Realisation Account, Partner’s Capital Accounts and Bank Account. 6
Ans:
Realisation
A/c
|
Particular |
Amount |
Particulars |
Amount |
|
To Furniture To Investment To Debtors To Stock To Bank (Payment of Creditors) -
To Bank (Exp) To Profit on realisation -
Ravi = 1,100*3/5 -
Vicky = 1,00*2/5 |
16,000 4,000 2,000 3,000 1,900 400 660 440 |
By S/creditors By Bank (Realisation of assets) -
Debtors = 1,800 -
Stock = 2,800 -
Furniture =18,000 -
By Ravi’s Capital A/c -
(Investment taken over) |
2,000 22,600 3,800 |
|
|
28,400 |
|
28,400 |
Partner’s
Capital A/c
|
|
Ravi |
Vicky |
|
Ravi |
Vicky |
|
To Realisation A/c (Investment taken over) To Bank (Final Payment) |
3,800 15,260 |
11,040 |
By Balance b/d By Profit & Loss A/c By Realisation A/c |
17,500 900 660 |
10,000 600 440 |
|
|
19,060 |
11,040 |
|
19,060 |
11,040 |
Bank
A/c
|
Particular |
Amount |
Particulars |
Amount |
|
To Balance b/d To Realisation A/c (Assets Realised) |
6,000 22,600 |
By Realisation A/c (Liabilities paid off) By Realisation A/c (Exp.) By Ravi’s Capital A/c By Vicky’s Capital A/c |
1,900 400 15,260 11,040 |
|
|
28,600 |
|
28,600 |
2023
15. Sunu,
Nanu and Nidhi are partners in a firm sharing profits in the ratio of 2: 1: 1.
Their Balance Sheet as on 31st March, 2021 was as under: 6
Balance
Sheet
|
Liabilities |
Rs. |
Assets |
Rs. |
|
Creditors Capital: Sunu = 80,000 Nanu = 80,000 Nidhi = 60,000 |
50,000 2,20,000 |
Land and Building Plant and Machinery Furniture Motor Car Debtors Cash |
80,000 56,000 30,000 54,000 48,000 2,000 |
|
|
2,70,000 |
|
2,70,000 |
The firm was dissolved on the above date. The assets
realised as follows:
Furniture =
Rs. 20,000.
Land and Building =
Rs. 1,00,000.
Plant and Machinery =
Rs. 50,000.
Motor Car =
Rs. 28,000
Debtors =
50% of Book Value.
Realisation Expenses were Rs. 2,000.
Prepare Realisation A/c, Partner’s Capital A/c and
Cash A/c to close the books of the firm.
Ans:
Realisation
A/c
|
Particular |
Amount |
Particulars |
Amount |
|
To Land and Building To Plant and Machinery To Furniture To Motor Car To Debtors To Cash (Payment of Creditors) -
To Cash (Exp) |
80,000 56,000 30,000 54,000 48,000 50,000 2,000 |
By S/creditors By Cash (Realisation of assets) -
Furniture = 20,000 -
Land & Building =1,00,00 -
P/M =50,000 -
Motor car = 28,000 -
Debtors = 24,000 -
By Loss on Realisation -
Sunu = 48,000*2/4 -
Nanu = 48,000*1/4 -
Nidhi = 48,000*1/4 |
50,000 2,22,000 24,000 12,000 12,000 |
|
|
3,20,000 |
|
3,20,000 |
Partner’s
Capital A/c
|
|
Sunu |
Nanu |
Nidhi |
|
Sunu |
Nanu |
Nidhi |
|
To Realisation (Loss on realisation) To Cash (Final Payment) |
24,000 56,000 |
12,000 68,000 |
12,000 48,000 |
By Balance b/d |
80,000 |
80,000 |
60,000 |
|
|
80,000 |
80,000 |
60,000 |
|
80,000 |
80,000 |
60,000 |
Cash
A/c
|
Particular |
Amount |
Particulars |
Amount |
|
To Balance b/d To Realisation A/c (Assets Realised) |
2,000 2,22,000 |
By Realisation A/c (Liabilities paid off) By Realisation A/c (Exp.) By Sunu’s Capital A/c By Nanu’s Capital A/c By Nidhi’s Capital A/c |
50,000 2,000 56,000 68,000 48,000 |
|
|
2,24,000 |
|
2,24,000 |
2022
Q. Amal and
Bimal are two partners in a firm. They share profits 3:2. Following is their
Balance Sheet as on 31st March, 2021 on which date the firm
dissolved:
Balance
Sheet
|
Liabilities
|
(Rs.) |
Assets |
(Rs.) |
|
Creditors Reserve Capitals: Amal 20,000 Bimal 15,000 |
20,000 5,000 35,000 |
Fixed Assets Stock Debtors Cash Profit and Loss A/c |
30,000 10,000 15,000 3,000 2,000 |
|
|
60,000 |
|
60,000 |
Fixed Assets are realised at Rs. 28,000. Stock at Rs.
8,000 and Debtors at Rs. 13,000. Expenses on realisation are Rs. 1,500.
Creditors are paid at a discount of 10%. Prepare Realisation A/c, Partners’
Capital A/c and Cash A/c. 2+2+1=5
Ans:
Realisation
A/c
|
Particular |
Amount |
Particulars |
Amount |
|
To Fixed Assets To Stock To Debtors To Cash (Payment of Creditors) -
To Cash (Exp) |
30,000 10,000 15,000 18,000 1,500 |
By S/creditors By Cash (Realisation of assets) -
Fixed Assets = 28,000 -
Stock = 8,000 -
Debtors =
13,000 -
By Loss on Realisation -
Amal = 5,500*3/5 -
Bimal = 5,500*2/5 |
20,000 49,000 3,300 2,200 |
|
|
74,500 |
|
74,500 |
Partner’s
Capital A/c
|
|
Amal |
Bimal |
|
Amal |
Bimal |
|
To Profit & Loss A/c To Realisation A/c (Loss on realisation) To Cash (Final Payment) |
1,200 3,300 18,500 |
800 2,200 14,000 |
By Balance b/d By Reserve |
20,000 3,000 |
15,000 2,000 |
|
|
23,000 |
17,000 |
|
23,000 |
17,000 |
Cash
A/c
|
Particular |
Amount |
Particulars |
Amount |
|
To Balance b/d To Realisation A/c (Assets Realised) |
3,000 49,000 |
By Realisation A/c (Liabilities paid off) By Realisation A/c (Exp.) By Amal’s Capital A/c By Bimals’s Capital A/c |
18,000 1,500 18,500 14,000 |
|
|
28,600 |
|
28,600 |
2020
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
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.
Solution:
Realisation
A/c
|
Particular |
Amount |
Particulars |
Amount |
|
To Land To Investments To Sundry Debtors To Stock To Bank -
Creditors = 1,900 -
Expenses = 400 To Profit on realisation -
Dipali = 11,000 x 3/5 -
Rajshri = 11,000 x 2/5 |
16,000 4,000 2,000 3,000 2,300 6,660 4,440 |
By S/creditors By Bank (Realisation of assets) -
Land =
28,000 -
S/debtors = 1,800 -
Stock = 2,800 -
Investments = 3,800 |
2,000 36,400 |
|
|
38,400 |
|
38,400 |
Partner’s
Capital A/c
|
|
Dipali |
Rajshri |
|
Dipali |
Rajshri |
|
To Bank A/c |
25,060 |
15,040 |
By Balance b/d By Realisation A/c |
18,400 6,660 |
10,600 4,440 |
|
|
25,060 |
15,040 |
|
25,060 |
15,040 |
Bank
A/c
|
Particular |
Amount |
Particulars |
Amount |
|
To Balance b/d To Realisation A/c (Assets) |
6,000 36,400 |
By Realisation A/c (Liabilities) By Realisation A/c (Exp.) By Dipali’s Capital A/c By Rajshri’s Capital A/c |
1,900 400 25,060 15,040 |
|
|
42,400 |
|
42,400 |
2019
A and B
are partners sharing profits equally, Balance Sheet on September 2018 was as
follows: 5
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.
Journal
Entries
In the
Books of the Firm
|
Particulars |
L/F |
Amount |
Amount |
|
Realisation A/c
Dr. To
Sundry Assets A/c (Being the sundry assets transferred to realisation A/c.) |
|
59,000 |
59,000 |
|
Creditors A/c
Dr. Bills Payable A/c
Dr. To
Realisation A/c (Being the sundry liabilities transferred to realisation A/c) |
|
11,200 1,800 |
13,000 |
|
Cash A/c
Dr. To
Realisation A/c (Being the sundry assets realized) |
|
49,600 |
49,600 |
|
Realisation A/c [1,800 + 10,976]
Dr. To
Cash A/c (Being the creditors and Bills payable paid off.) |
|
12,776 |
12,776 |
|
Realisation A/c
Dr. To
Cash A/c (Being the realisation Expenses paid) |
|
544 |
544 |
|
Reserve Fund A/c
Dr. To
A’s Capital A/c To
B’s Capital A/c (Being the reserve fund distributed between the partners.) |
|
6,000 |
3,000 3,000 |
|
A’s Capital A/c
Dr. B’s Capital A/c
Dr. To
Realisation A/c (Being the loss on realisation distributed between the
partners.) |
|
4,860 4,860 |
9,720 |
|
A’s Capital A/c
Dr. B’s Capital A/c
Dr. To
Cash A/c (Being the loss on realisation distributed between the
partners.) |
|
18,140 18,140 |
36,280 |
2018
17. SONU
and ASHU were partners sharing profits in the ratio of 3: 1. Their Balance
Sheet as on 31st March, 2017 was as follows:
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. 5
Ans:
Realisation
A/c
|
Particulars |
Amount |
Particulars |
Amount |
|
To
Sundry assets To
Bank (Payment to Creditors) To
Sonu’s Capital (Loan taken over) To
Bank (Expenses) |
70,000 8,000 20,000 2,000 |
By
Creditors By
Loan By
Bank (Assets realised) By
Loss on realisation -
Sonu = 20,000*3/4 -
Ashu = 20,000*3/4 |
10,000 20,000 50,000 15,000 5,000 |
|
|
1,00,000 |
|
1,00,000 |
Bank A/c
|
Particulars |
Amount |
Particulars |
Amount |
|
To
Balance b/d To
Realisation A/c (Assets realised) |
20,000 50,000 |
By
Realisation A/c (Payment to creditors) By
Realisation A/c (Expenses paid) By
Sonu’s Capital A/c By
Ashu’s Capital A/c |
8,000 2,000 25,000 35,000 |
|
|
70,000 |
|
70,000 |
Partner’s
Capital A/c
|
Particulars |
Sonu |
Ashu |
Particulars |
Sonu |
Ashu |
|
To
P/L To
Realisation A/c To
Bank (Final Payment) |
30,000 15,000 25,000 |
10,000 5,000 35,000 |
By
Balance b/d By
Realisation A/c (Loan taken over) |
50,000 20,000 |
50,000 |
|
|
70,000 |
50,000 |
|
70,000 |
50,000 |
2017
17. Akash and Bikash are partners sharing
profits in the ratio of 3:2. Their Balance Sheet as on 31/03/2016 was as
follows:
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
Solution:
Journal
Entries
In the
books of the firm
|
Particulars |
L/f |
Amount Dr. |
Amount Cr. |
|
Realisation A/c
Dr. To
Sundry Assets ( Being sundry assets transferred to realisation account)) |
|
40,000 |
40,000 |
|
Sundry Creditors A/c
Dr. To
Realisation A/c ( Being sundry Creditors transferred to realisation account) |
|
10,000 |
10,000 |
|
Cash A/c
Dr. To
Realisation A/c (Being Assets realized ) |
|
60,000 |
60,000 |
|
Realisation A/c
Dr. To
Cash A/c ( Being creditors paid ) |
|
10,000 |
10,000 |
|
Realisation A/c
Dr. To
Cash A/c ( Being dissolution expenses paid) |
|
2,000 |
2,000 |
|
General Reserve A/c
Dr. To
Akash’s Capital A/c To
Bikash’s Capital A/c ( Being General reserve transferred to capital A/c) |
|
10,000 |
6,000 4,000 |
|
Realisation A/c
Dr. To
Akash’s Capital A/c To
Bikash’s Capital A/c ( Being realisation profit transferred) |
|
18,000 |
10,800 7,200 |
|
Akash’s Capital A/c Dr. Bikash’s Capital A/c
Dr. To Cash A/c (Being final payment made to the partners) |
|
28,800 19,200 |
48,000 |
2016
17. 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/- |
Prepare Realisation Account. 5
Solution:
Realisation
A/c
|
Particulars |
Amount |
Particulars |
Amount |
|
To Machinery To Stock To Sundry Debtors To Cash A/c |
1,050 6,059 3,572 8,453 |
By Sundry Creditors By Bank Loan By Cash A/c By Loss on Realisation (to current A/c): R:
1,296 x 8/16 = 648 H:
1,296 x 5/16 = 405 M:
1,296 x 3/16 = 243 |
2,953 5,500 9,385 1,296 |
|
|
19,134 |
|
19,134 |
2015
18.
A and B are partners sharing profits in the ratio of 3:2. Their Balance Sheet
as on 31.03.14 was as follows:
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. 5
Solution:
Journal
Entries
In the
books of the firm
|
Particulars |
L/f |
Amount (Dr.) |
Amount (Cr.) |
|
Realisation A/c Dr. To
Sundry Assets A/c (Being the Sundry assets transferred to realisation A/c) |
|
17,000 |
17,000 |
|
Sundry Creditors A/c
Dr. To
Realisation A/c (Being the sundry
creditors transferred to realisation A/c) |
|
7,500 |
7,500 |
|
Cash A/c Dr. To
Realisation A/c (Being the sundry assets realised) |
|
13,500 |
13,500 |
|
Realisation A/c Dr. To
Cash A/c (Being the creditors paid off) |
|
7,500 |
7,500 |
|
Realisation A/c Dr. To
Cash A/c (Being the realisation expenses paid) |
|
250 |
250 |
|
General Reserve A/c
Dr. To
A’s Capital A/c To
B’s Capital A/c (Being the general reserve distributed between the partners) |
|
2,500 |
1,500 1,000 |
|
A’s Capital A/c Dr. B’s Capital A/c Dr. To
Profit & Loss A/c (Being the debit balance of P/L A/c distributed) |
|
3,000 2,000 |
5,000 |
|
A’s Capital A/c Dr. B’s Capital A/c Dr. To
Realisation A/c (Being the loss on realisation distributed between the partners) |
|
2,250 1,500 |
3,750 |
|
A’s Capital A/c Dr. To
Cash A/c (Being the final payment made to the partners) |
|
6,250 |
6,250 |
|
Cash A/c Dr. To
B’s Capital A/c (Being the cash realised from B) |
|
500 |
500 |
2014
19. 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: 8
Balance
Sheet
As on
31.12.2012
|
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 |
|
|
|
|
|
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.
Solution:
Journal
Entries
In the
books of firm
|
Particulars |
L/f |
Amount Dr. |
Amount Cr. |
|
Realisation A/c
Dr. To Fixed Assets A/c To Stock A/c To Debtors A/c (Being the Sundry assets transferred to realisation A/c) |
|
55,000 |
30,000 10,000 15,000 |
|
Creditors A/c
Dr. To Realisation A/c (Being the creditors transferred to realisation A/c) |
|
20,000 |
20,000 |
|
Cash A/c
Dr. To Realisation A/c (Being the sundry assets realised: Fixed assets = 28,000; stock
= 8,000 and debtors = 13,000) |
|
49,000 |
49,000 |
|
Realisation A/c
Dr. To Cash A/c (Being the creditors paid off) |
|
18,000 |
18,000 |
|
Realisation A/c
Dr. To Cash A/c (Being the realisation expenses paid) |
|
1,500 |
1,500 |
|
Reserve Fund A/c
Dr. To Amal’s Capital A/c To Bimal’s Capital A/c (Being the reserve fund distributed between the partners) |
|
5,000 |
3,000 2,000 |
|
Amal’s Capital A/c
Dr. Bimal’s Capital A/c
Dr. To Profit & Loss A/c (Being the debit balance of P/L A/c distributed) |
|
1,200 800 |
2,000 |
|
Amal’s Capital A/c
Dr. Bimal’s Capital A/c
Dr. To Realisation A/c (Being the loss on realisation distributed between the partners) |
|
3,300 2,200 |
5,500 |
|
Amal’s Capital A/c
Dr. Bimal’s Capital A/c
Dr. To Cash A/c (Being the final payment made to the partners) |
|
18,500 14,000 |
32,500 |
2012
Q.21:
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)
|
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.
Solution:
Realisation
A/c
|
Particulars |
Amount |
Particulars |
Amount |
|
To Land & Building To Plant & Machinery To Sundry Debtors To Bills Receivable To Cash A/c (Payment of liabilities) To Cash A/c (Expenses) To Gaurav Capital (Mrs. Gaurav Loan taken over) To Profit on realisation Kumar: 9,200 x 3/4 Gaurav: 9,200 x ¼ |
50,000 18,000 22,000 7,500 12,000 700 13,000 6,900 2,300 |
By Provision for doubtful debts By Creditors By Loan of Mrs. Gaurav By Cash A/c (Assets realised) By Gaurav Capital A/c (P/M Taken over) |
2,000 16,000 13,000 82,500 18,900 |
|
|
1,32,400 |
|
1,32,400 |
Partner’s
Capital A/c
|
Particulars |
Kumar |
Gaurav |
Particulars |
Kumar |
Gaurav |
|
To Realisation A/c To Cash A/c |
18,900 28,000 |
50,300 |
By Balance c/d By Realisation A/c By Realisation A/c |
40,000 6,900 |
35,000 13,000 2,300 |
|
|
46,900 |
50,300 |
|
46,900 |
50,300 |
Cash A/c
|
Particulars |
Amount |
Particulars |
Amount |
|
To Balance b/d To Realisation (Assets realised) |
8,500 82,500 |
By Realisation A/c (Payment of liabilities) By Realisation (expenses) By Kumar’s Capital A/c By Gaurav’s Capital A/c |
12,000 700 28,000 50,300 |
|
|
91,000 |
|
91,000 |
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