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12th | Dissolution of a partnership firm | Question No. 1 To 4 | Ts Grewal Solution 2023-2024

Question 1:


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.

Answer:


In the books of the firm

Journal

Date

Particulars

 

L.F.

Debit

( `)

Credit

( `)

On the

Cash/ Bank A/c (3,00,000 – 6,000)

Dr.

 

2,94,000

 

Date of

  To Realisation A/c (3,00,000 – 6,000)

 

 

 

2,94,000

Dissolution

(Being amount realized from land and building after providing for 2% commission to the broker)

 

 

 

 

 

 

 

 

 

 

 

Question 2: (a) What Journal entry will be passed when an unrecorded liability of ` 15,000 is settled at ` 10,000 and paid by X, a partner on the dissolution of a firm?


(b) What Journal entry will be passed when a machine having a book value off ` 15,000 is given to Rakesh, a creditor of ` 22,000 at an agreed valuation of ` 12,000 towards partial payment of his dues?

Answer:


Date

Particulars

 

`  (Dr.)

` (Cr.)

(a)

Realisation A/c

Dr.

10,000

 

 

 To X's Capital A/c

 

 

10,000

 

 

 

 

 

(b)

Realisation A/c

Dr.

10,000

 

 

 To Cash/Bank A/c

 

 

10,000

 

 

 

 

 

 

Question 3:


Pass Journal entries in the following cases?
(a) Expenses of realisation `600 but paid by Mohan, a partner.
(b) Mohan, one of the partners of the firm, was asked to look into the dissolution of the firm for which he was allowed a commission of  ` 2,000.
(c) Motor car of book value  ` 50,000 taken over by Creditors  of the book value of  ` 40,000 in full settlement.

Answer:


Journal

S.N.

Particulars

L.F.

Debits

`

Credit

`

 

 

 

 

 

(a)

Realisation A/c

Dr.

 

600

 

To Mohan’s Capital A/c

 

 

600

(Being Realisation expenses paid by Mohan)

 

 

 

 

 

 

 

 

(b)

Realisation A/c

Dr.

 

2,000

 

To Mohan’s capital A/c

 

 

2,000

(Being Commission allowed to Mohan on dissolution of the firm)

 

 

 

 

 

 

 

 

(c)

No entry

No journal entry is passed because both motor car and Creditors  accounts have already been transferred to Realisation Account and nothing is recovered or paid in terms of Cash and Bank  

 

 

 

 

Question 4:


Pass Journal entries for the following:

(a) Realisation expenses of `10,000 were to be met by Mohan, a partner, but were paid by the firm.

(b) Mahesh, a partner, was paid remuneration of `25,000 and he was to meet all expenses.

(c) Suresh, a partner, was paid remuneration of `20,000 and he was to meet all expenses. Firm paid an expense of ` 5,000..

Answer:

Date

Particulars

 

`  (Dr.)

` (Cr.)

(a)

Mohan's Capital A/c

Dr.

10,000

 

 

 To Bank A/c

 

 

10,000

 

(Realisation expenses were to be met by Mohan, a partner, but were paid by the firm)

 

 

(b)

Realisation A/c

Dr.

10,000

 

 

 To Mohan's Capital A/c

 

 

10,000

 

(Mahesh, a partner, was paid remuneration and he was to meet all expenses)

 

 

(c)

Suresh's Capita A/c

Dr.

5,000

 

 

 To Bank A/c

 

 

5,000

 

(Suresh, a partner, was paid remuneration of and he was to meet all expenses. Firm paid an expense)

 

 

 

 

Ts Grewal Solution 2023-2024

Click below for more Questions

Class 12 / Volume – I

Chapter 7 – Dissolution of a partnership firm

 

Question No. 1 To 4

Question No. 5 To 8

Question No. 9 To 12

Question No. 13 To 16

Question No. 17 To 20

Question No. 21 To 24

Question No. 25 To 28

Question No. 29 To 32

Question No. 33 To 36

Question No. 37 To 40

Question No. 41 To 44

Question No. 45 To 48

Question No. 49 And 50