Question 21: A, B and C were partners sharing profits and losses in the ratio of 2:2:1.Their Balance Sheet as at 31st March, 2018 was as follows:
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BALANCE SHEET OF A, B AND C as at 31st March, 2018 |
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Liabilities |
|
` |
Assets |
|
` |
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Capitals: A B C Creditors |
7,50,000 3,00,000 2,50,000 2,00,000 |
13,00,000 |
Cash at Bank Sundry Debtors Less: Provision for Bad Debts Stock Fixed Assets |
3,00,000 1,95,000 5,000 |
1,90,000 3,00,000 7,10,000 |
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|
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15,00,000 |
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15,00,000 |
On the above date they dissolved the firm and following amounts were realised:
Fixed Assets 6,75,000; StockF3,39,000; Debtors1,35,000; Creditors were paid 1,85,000 in full settlement of their claim. Expenses on realisation amounted to F 19,000.
Pass the necessary Journal entries on the dissolution of the firm. (CBSE 2019)
Answer:
Journal
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Date
|
Particulars
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L.F.
|
Dr. `
|
Cr. `
|
31 March
|
Realisation a/c
To
Sundry Debtors a/c
To Stock
A/c
To Fixed
assets A/c
(Being assets transferred to realization account)
|
Dr.
|
|
12,05,000
|
1,95,000
3,00,000
7,10,000
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31 March
|
Provision for bad debts a/c
Creditors a/c
To Realisation A/c
(Being
Liabilities transferred to realization account)
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Dr
Dr.
|
|
5,000
2,00,000
|
2,05,000
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31 March
|
Realisation a/c
To Bank
a/c
(Being Creditors and expenses Paid)
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Dr.
|
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2,04,000
|
2,04,000
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31 March
|
Bank a/c
To Realisation A/c
(Being various assets realised)
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Dr.
|
|
11,49,000
|
11,49,000
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31 March
|
A’s Capital a/c
B’s Capital a/c
C’s Capital a/c
To Realisation A/c
(Being Loss on realization transferred to Capitals
account)
|
Dr.
Dr.
Dr.
|
|
22,000
22,000
11,000
|
55,000
|
31 March
|
A’s Capital a/c
B’s Capital a/c
C’s Capital a/c
To Bank
A/c
(Being balance of capital paid to partners)
|
Dr.
Dr.
Dr.
|
|
7,28,000
2,78,000
2,39,000
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12,45,000
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Question 22:
Achal and Vichal were partners in a firm sharing profits in the ratio of 3 : 5. On 31st March, 2022, their Balance Sheet was as follows:
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Liabilities |
(
`) |
Assets |
(
`) |
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Capital
A/cs:
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Land
and Building |
4,00,000 |
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Achal |
3,00,000 |
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Machinery |
|
3,00,000 |
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Vichal |
5,00,000 |
8,00,000 |
Debtor |
|
2,22,000 |
|
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Creditors
|
1,79,000 |
Cash
at Bank |
|
78,000 |
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Employees'
Provident Fund |
21,000 |
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||
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|
10,00,000 |
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10,00,000 |
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The firm was dissolved on 1st April, 2022 and the Assets and Liabilities were
settled as follows:
(a) Land and Building realised ` 4,30,000.
(b) Debtor realised ` 2,25,000 (with interest)
and `
1,000 were recovered for Bad Debts written off last year.
(c) There was an Unrecorded Investment which was sold for ` 25,000.
(d) Vichal took over Machinery at ` 2,80,000 for cash.
(e) 50% of the Creditors
were paid ` 4,000 less in full settlement and the remaining
Creditors were paid full amount.
Pass necessary Journal entries for dissolution of the firm. (AI 2012, Modified)
Answer:
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Journal |
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Date |
Particulars |
L.F. |
Debit (
`) |
Credit (
`) |
|
|
2022 |
Realisation A/c |
|
|
|
|
|
|
To
Land & Building A/c |
|
|
|
4,00,000 |
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To
Machinery A/c |
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|
|
3,00,000 |
|
|
To
Debtor A/c |
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|
|
2,22,000 |
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|
(Being
assets transferred) |
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Apr.1 |
Creditors A/c |
Dr. |
|
1,79,000 |
|
|
|
Employees’
Provident Fund A/c |
Dr. |
|
21,000 |
|
|
|
To
Realisation A/c |
|
|
|
2,00,000 |
|
|
(Being
liabilities transferred) |
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Apr.1 |
Bank
A/c |
Dr. |
|
4,30,000 |
|
|
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To
Realisation A/c |
|
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|
4,30,000 |
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|
(Being
Land & Building realised) |
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Apr.1 |
Bank
A/c (2,25,000 + 1,000) |
Dr. |
|
2,26,000 |
|
|
|
To
Realisation A/c |
|
|
|
2,26,000 |
|
|
(Being
Debtor realised along-with Bad-debts recovered) |
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Apr.1 |
Bank
A/c |
Dr. |
|
25,000 |
|
|
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To
Realisation A/c |
|
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|
25,000 |
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|
(Being
Unrecorded Investments sold) |
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Apr.1 |
Bank
A/c |
Dr. |
|
2,80,000 |
|
|
|
To
Realisation A/c |
|
|
|
2,80,000 |
|
|
(Being
Machinery took over by Vichal for Cash) |
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Apr.1 |
Realisation A/c |
Dr. |
|
1,96,000 |
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To
Bank A/c (85,500 + 89,500 + 21,000) |
|
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|
1,96,000 |
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(Being
50% Creditors of ` 89,500 were paid at a discount of ` 4,000 and remaining 50% were settled in full and EPF) |
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Apr.1 |
Realisation A/c |
Dr. |
|
43,000 |
|
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To
Achal’s Capital A/c |
|
|
|
16,125 |
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To
Vichal’s Capital A/c |
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|
26,875 |
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(Being
profits on realisation transferred) |
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Apr.1 |
Achal’s Capital A/c |
Dr. |
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3,16,125 |
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Vichal’s Capital A/c |
Dr. |
|
5,26,875 |
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To
Bank A/c |
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|
8,43,000 |
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(Being
Partners paid off) |
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Question 23:
Bale and Yale are equal partners of a firm. They decide to dissolve their partnership on 31st March, 2022 at which date their Balance Sheet stood as:
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Liabilities |
` |
Assets |
` |
|
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Capital
A/cs: |
|
Building |
45,000 |
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Bale |
50,000 |
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Machinery |
15,000 |
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Yale |
40,000 |
90,000 |
Furniture |
12,000 |
|
General
Reserve |
|
8,000 |
Debtor |
8,000 |
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Bale's
Loan A/c |
|
3,000 |
Stock |
24,000 |
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Creditors
|
|
14,000 |
Bank |
11,000 |
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1,15,000 |
|
1,15,000 |
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(a)
The assets realised were:
Stock `
22,000; Debtor `
7,500; Machinery ` 16,000; Building ` 35,000.
(b) Yale took over the Furniture at ` 9,000.
(c) Bale agreed to accept
` 2,500 in full settlement of his Loan Account.
(d) Dissolution Expenses amounted to ` 2,500.
Prepare
the:
(i) Realisation
Account; (ii) Capital Accounts of Partners;
(iii) Bale's Loan Account; (iv) Bank Account.
Answer:
|
Realisation Account |
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|
Dr. |
|
Cr. |
|||||||||||
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Particulars |
( `) |
Particulars |
( `) |
||||||||||
|
Building |
45,000 |
Creditors |
14,000 |
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Machinery |
15,000 |
Bank A/c: |
|
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Furniture |
12,000 |
Stock |
22,000 |
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Debtor |
8,000 |
Debtor |
7,500 |
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Stock |
24,000 |
Machinery |
16,000 |
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Building |
35,000 |
80,500 |
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Bank A/c: |
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Creditors |
14,000 |
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Bale’s Loan |
500 |
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Expenses |
2,500 |
16,500 |
Yale’s Capital A/c (Furniture) |
9,000 |
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Loss transferred to: |
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Bale’s Capital A/c |
8,250 |
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Yale’s Capital A/c |
8,250 |
16,500 |
|||||||||
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1,20,500 |
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1,20,500 |
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Dr. |
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Cr. |
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Particulars |
Bale |
Yale |
Particulars |
Bale |
Yale |
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Realisation A/c (Loss) |
8,250 |
8,250 |
Balance b/d |
50,000 |
40,000 |
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Realisation A/c |
– |
9,000 |
General Reserve |
4,000 |
4,000 |
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Bank A/c |
45,750 |
26,750 |
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54,000 |
44,000 |
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54,000 |
44,000 |
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Bale’s Loan Account |
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|
Dr. |
|
Cr. |
|||
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Particulars |
( `) |
Particulars |
( `) |
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|
Bank A/c |
2,500 |
Balance b/d |
3,000 |
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Realisation A/c |
500 |
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3,000 |
|
3,000 |
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Bank Account |
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|
Dr. |
|
Cr. |
|||
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Particulars |
( `) |
Particulars |
( `) |
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Balance b/d |
11,000 |
Bale’s Loan |
2,500 |
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Realisation A/c |
80,500 |
Realisation A/c |
16,500 |
||
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Bale’s Capital A/c |
45,750 |
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Yale’s Capital A/c |
26,750 |
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91,500 |
|
91,500 |
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Question 24:
Shilpa, Meena and Nanda decided
to dissolve their partnership on 31st March, 2022. Their profit-sharing ratio
was 3 : 2 : 1 and their Balance Sheet was as under:
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BALANCE SHEET OF SHILPA, MEENA AND NANDA as at 31st March, 2022 |
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|
Liabilities |
` |
Assets |
` |
|
|
Capital
A/cs: |
|
Land |
81,000 |
|
|
Shilpa |
80,000 |
|
Stock |
56,760 |
|
Meena |
40,000 |
1,20,000 |
Debtor |
18,600 |
|
Bank
Loan |
|
20,000 |
Nanda's Capital |
23,000 |
|
Creditors
|
|
37,000 |
Cash |
10,840 |
|
Provision
For Doubtful Debts |
|
1,200 |
|
|
|
General
Reserve |
|
12,000 |
|
|
|
|
|
|
|
|
|
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|
1,90,200 |
|
1,90,200 |
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It is agreed as follows:
The stock of
value of `
41,660 are taken over by Shilpa for ` 35,000 and she agreed to
discharge bank loan. The remaining stock was sold at ` 14,000 and Debtor amounting
to `10,000
realised ` 8,000. Land is sold for ` 1,10,000. The remaining
Debtor realised 50% at their book value. Cost of realisation amounted to `1,200. There was a
typewriter not recorded in the books worth of ` 6,000 which were taken over
by one of the Creditors at this value.
Prepare Realisation Account, Partners' Capital
Accounts, and Cash Account to Close the books of the
firm.
Answer:
|
Realisation Account |
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|
Dr. |
|
Cr. |
|
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|
Particulars |
(
`) |
Particulars |
(
`) |
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|
Land |
81,000 |
Bank
Loan |
20,000 |
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|
Stock |
56,760 |
Creditors
|
37000 |
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|
Debtor |
18,600 |
Provision
for doubtful debts |
1,200 |
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Shilpa’s Capital A/c |
20,000 |
Shilpa’s Capital A/c (Stock) |
35,000 |
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Cash: |
|
Cash: |
|
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Creditors
|
31000 |
|
Stock |
14000 |
|
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|
Realisation Expenses |
1,200 |
32200 |
Debtor |
12300 |
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|
Realisation Profit |
|
Land |
1,10,000 |
1,36,300 |
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Shilpa’s Capital A/c |
10,470 |
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Meena’s Capital A/c |
6,980 |
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Nanda’s Capital A/c |
3,490 |
20,940 |
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|
2,29,500 |
|
2,29,500 |
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Partners Capital Account |
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|
Dr. |
|
Cr. |
|
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Particulars |
Shilpa |
Meena |
Nanda |
Particulars |
Shilpa |
Meena |
Nanda |
||
|
Balance
b/d |
– |
– |
23,000 |
Balance
b/d |
80,000 |
40,000 |
– |
||
|
Realisation |
35,000 |
|
|
General
Reserve |
6,000 |
4,000 |
2,000 |
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|
(Stock) |
|
|
|
Realisation |
20,000 |
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|
||
|
Cash |
81,470 |
50,980 |
|
(Bank
Loan) |
|
|
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||
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|
|
|
|
Realisation (Profit) |
10,470 |
6,980 |
3,490 |
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|
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Cash |
|
|
17,510 |
||
|
|
1,16,470 |
50,980 |
23,000 |
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1,16,470 |
50,980 |
23,000 |
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Cash Account |
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|||||
|
Dr. |
|
Cr. |
|
|||
|
Particulars |
(
`) |
Particulars |
(
`) |
|||
|
Balance
b/d |
10,840 |
Realisation (Expenses) |
32,200 |
|||
|
Realisation (Assets) |
1,36,300 |
Shilpa’s Capital A/c |
81,470 |
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Nanda’s Capital A/c |
17,510 |
Meena’s Capital A/c |
50,980 |
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|
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|
|||
|
|
1,64,650 |
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1,64,650 |
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Ts Grewal Solution 2022-2023
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