12th | Dissolution of a Partnership Firm | Question No. 17 To 20 | Ts Grewal Solution 2025-2026

Pass tne necessary Journal entries for the following transactions on the dissolution of the partnership firm of Tina and Rina after the various assets (other than cash and bank) and external liabilities have been transferred to Realisation Account:

(i) There was an outstanding bill for repairs for which ₹20,000 were paid.

(ii) The firm had stock of ₹80,000. Tina took over 50% of the stock at a discount of 20% while the remaining stock was sold off for ₹52,000.

(iii) The firm had 100 shares of ₹10 each which were taken over by the partners at market value of ₹20 per share in their profit-sharing ratio of 3: 2.

(iv) Realisation expenses of ₹4,000 were paid by Rina.

(v) Tina had given a loan of ₹40,000 to the firm which was duly paid.

(vi) Rina agreed to pay off her husband's loan of ₹10,000 at a discount of 10%.

(CBSE 2024)

Answer:

Pass necessary Journal entries on dissolution of a firm in the following cases:

(a) Dharàm, a partner, was appointed to look after the process of dissolution at a remuneration of ₹12,000.

Dissolution expenses were to be borne by the firm. Dissolution expenses ₹11,000 were paid by Dharam.

(b) Jay, a partner, was appointed to look after dissolution and was to be paid ₹15,000, including dissolution expenses. Dissolution expenses ₹16,000 were paid by Vijay, another partner on behalf of Jay.

(c) Deepa, a partner, was to handle dissolution and for this work she was to be paid ₹7,000, including dissolution expenses. Dissolution expenses ₹6,000 were paid from the firm's bank account.

(d) De, a partner, agreed to do the work of dissolution for ₹7,500. He took stock of the same value as his remuneration. 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 ₹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.

Answer:

Realisation Account

2022 was as follows:

On the above date, the firm was dissolved due to certain disagreement among the partners:

(i) Machinery of Rs. 3,00,000 were given to creditors in full settlement of their account and remaining machinery was sold for Rs. 10,000.

(ii) Investments realized Rs. 2,90,000.

(iii) Stock was sold for 1,80,000.

(iv) Debtors for 20,000 proved bad.

(v) Realisation expenses amounted to Rs. 10,000.

Prepare Realisation Account.

(CBSE 2023)

Answer:

Ramesh and Umesh were partners in a firm sharing profits in the ratio of their capitals. On 31st March, 2025, 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.

Answer: