12th | Dissolution of a Partnership Firm | Question No.  17 To 20 | Ts Grewal Solution 2022-2023

Pass necessary Journal entries on the dissolution of a firm in the following cases:
(a) Dharam, a partner, was appointed to look after the process of dissolution at a remuneration of  ` 12,000 and he had to bear the dissolution expenses. Dissolution expenses  ` 11,000 were paid by Dharam.
(b) Jay, a partner, was appointed to look after the process of dissolution and was allowed a remuneration of  ` 15,000. Jay agreed to bear dissolution expenses. Actual dissolution expenses  ` 16,000 were paid by Vijay, another partner on behalf of Jay.
(c) Deepa, a partner, was to look after the process of dissolution and for this work she was allowed a remuneration of  ` 7,000. Deepa agreed to bear dissolution expenses. Actual dissolution expenses  ` 6,000 were paid from the firm's bank account.
(d) Dev, a partner, agreed to do the work of dissolution for  ` 7,500. He took away stock of the same amount as his commission. The stock had already been transferred to Realisation Account.
(e) Jeev, a partner, agreed to do the work of dissolution for which he was allowed a commission of  ` 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.
(f) A debtor of  ` 8,000 already transferred to Realisation Account agreed to pay the realisation expenses of  ` 7,800 in full settlement of his account.

Ramesh and Umesh were partners in a firm sharing profits in the ratio of their capitals. On 31st March, 2013, their Balance Sheet was as follows:

On the above date the firm was dissolved.
(a) Ramesh took over 50% of stock at  ` 10,000 less than book value. The remaining stock was sold at a loss of  ` 15,000. Debtor were realised at a discount of 5%.
(b) Furniture was taken over by Umesh for  ` 50,000 and machinery was sold for  ` 4,50,000.
(c) Creditors  were paid in full.
(d) There was an unrecorded bill for repai ` for  ` 1,60,000 which was settled at  ` 1,40,000.
Prepare Realisation Account.

Pradeep and Rajesh were partners in a firm sharing profits and losses in the ratio of 3 : 2. They decided to dissolve their partnership firm on 31st March, 2018. Pradeep was deputed to realise the assets and to pay off the liabilities. He was paid  ` 1,000 as commission for his services. The financial position of the firm on 31st March, 2018 was as follows:

Following terms and conditions were agreed upon:
(a) Pradeep agreed to pay off his wife's loan.
(b) Half of the Debtor realised  ` 12,000 and remaining Debtor were used to pay off 25% of the Creditors .
(c) Investment sold to Rajesh for  ` 27,000.
(d) Building realised  ` 1,52,000.
(e) Remaining Creditors  were to be paid after two months, they were paid immediately at 10% p.a. discount.
(f) Bill receivables were settled at a loss of  ` 1,400.
(g) Realisation expenses amounted to  ` 2,500.
Prepare Realisation Account.

  Working Notes:

On the above date they decided to dissolve the firm.

(a) Ashish agreed to take over furniture at 38,000 and pay off Mrs. Ashishis loan.

(b) Debtors realised 18,500 and plant realised 10% more.

(c) Kanav took over 40% of the stock at 20% less than the book value. Remaining stock was sold ata gain of 10%.

(d) Trade creditors took over investments in full settlement.

(e) 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. (CBSE 2019)