Question 21:
Ramesh and Umesh were partners in a firm sharing profits in the ratio of their capitals. On 31st March, 2023, their Balance Sheet was as follows:
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Liabilities |
(`) |
Assets |
(`) |
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Creditors
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1,70,000 |
Bank |
1,10,000 |
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Workmen
Compensation Reserve |
2,10,000 |
Debtor |
2,40,000 |
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General
Reserve |
2,00,000 |
Stock |
1,30,000 |
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Ramesh's
Current Account |
80,000 |
Furniture |
2,00,000 |
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Capital
A/cs: |
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Machinery |
9,30,000 |
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Ramesh |
7,00,000 |
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Umesh's Current Account |
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50,000 |
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Umesh |
3,00,000 |
10,00,000 |
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16,60,000 |
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16,60,000 |
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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:
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Realisation Account |
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Dr. |
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Cr. |
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Particulars |
` |
Particulars |
` |
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Sundry Assets- |
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Creditors |
1,70,000 |
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Debtor |
2,40,000 |
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Ramesh’s Current A/c (Stock) |
55,000 |
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Stock |
1,30,000 |
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Cash A/c (Assets Realised) |
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Furniture |
2,00,000 |
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Stock |
50,000 |
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Machinery |
9,30,000 |
15,00,000 |
Machinery |
4,50,000 |
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Debtor |
2,28,000 |
7,28,000 |
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To Cash A/c (Liabilities) |
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Umesh’s Current A/c (Furniture) |
50,000 |
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Creditors |
1,70,000 |
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Outstanding Bill |
1,40,000 |
3,10,000 |
Realisation Loss |
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Ramesh’s Current A/c |
5,64,900 |
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Umesh’s Current A/c |
2,42,100 |
8,07,000 |
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18,10,000 |
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18,10,000 |
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Question 22:
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:
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Liabilities |
(`) |
Assets |
(`) |
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Creditors
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80,000 |
Building |
1,20,000 |
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M
`.
Pradeep's Loan |
40,000 |
Investment |
30,600 |
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Rajesh's
Loan |
24,000 |
Debtor |
34,000 |
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Investment
Fluctuation Fund |
8,000 |
Less: Provision for Doubtful
Debts |
4,000 |
30,000 |
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Capital
A/cs: |
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Bills
Receivable |
37,400 |
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Pradeep |
42,000 |
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Bank |
6,000 |
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Rajesh |
42,000 |
84,000 |
Profit
and Loss A/c |
8,000 |
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Goodwill |
4,000 |
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2,36,000 |
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2,36,000 |
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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.
Answer:
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Dr. |
Realisation A/c |
Cr. |
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Particulars |
(`) |
Particulars |
(`) |
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To
Building |
1,20,000 |
By
Provision for Doubtful Debts |
4,000 |
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To
Investments |
30,600 |
By
Creditors |
80,000 |
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To
Debtor |
34,000 |
By
Mr. Pradeep’s Loan |
40,000 |
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To
Bills Receivable |
37,400 |
By
Investment Fluctuation Fund |
8,000 |
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To
Goodwill |
4,000 |
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To
Pradeep’s Capital A/c (Wife loan paid) |
40,000 |
By
Bank A/c: |
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To
Cash A/c (Creditors Paid) (WN1) |
59,000 |
Debtor |
12,000 |
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To
Pradeep’s Capital A/c (Commission) |
1,000 |
Building |
1,52,000 |
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To
Cash A/c (Realisation Expenses) |
2,500 |
Bills Receivable |
36,000 |
2,00,000 |
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To
Profit transferred to: |
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Pradeep’s
Capital A/c |
18,300 |
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By
Cash A/c (Sale of
Investments) |
27,000 |
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Rajesh’s
Capital A/c |
12,200 |
30,500 |
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3,59,000 |
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3,59,000 |
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Working Notes:
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Remaining
Creditors to be paid |
= |
`
(80,000 × 75/100) = ` 60,000 |
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Discount
Received on Creditors |
= |
`
(60,000 × 10/100 × 2/12) = ` 1,000 |
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Amount
paid to the Creditors |
= |
` (60,000 – 1,000) = ` 59,000 |
Question 23: Ashish and Kanav were partners ina firm sharing profits and losses in the ratio of 3:2.On 31st March, 2018 their Balance Sheet was as follows:
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BALANCE SHEET OF ASHISH AND KANAV as at 315t March, 2018 |
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Liabilities |
` |
Assets |
` |
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Trade Creditors |
42,000 |
Bank |
35,000 |
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Employees' Provident Fund |
10,000 |
Stock |
24,000 |
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Mrs. Ashish's Loan |
9,000 |
Debtors |
19,000 |
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Kanav's Loan |
35,000 |
Furniture |
40,000 |
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Workmen's Compensation Fund |
20,000 |
Plant |
2,10,000 |
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Investment Fluctuation Reserve |
4,000 |
Investments |
32,000 |
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Capitals: Ashish: 1,20,000 Kanav: 80,000 |
2,00,000 |
Profit and Loss A/c |
10,000 |
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3,70,000 |
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3,70,000 |
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)
Answer:
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Realisation
a/c |
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Dr. |
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Cr. |
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Particulars |
` |
Particulars |
` |
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To Stock To Debtors To Furnisture
To Plant To Investiment
To Ashish’s capital a/c Mrs. Ashish loan taken To Kanav’s
capital a/c Ageed to bear realization expenses To Bank a/c EPF paid To Captial
– profit transferred to; Ashish
20,020×3/5=12,012 Kanav
20,020×2/5=8,008 (In the ratio 3:2) |
24,000 19,000 40,000 2,10,000 32,000 9,000 12,000 60,000 20,020 |
By Creditors By employees provident fund By Mrs. Ashish’s loan By Investment fluctuation reserve By Ashish’s capital a/c (Furniture taken) By Kanav’s
capital a/c Stock(24,000×40%×80%) By Bank a/c (Assets realised) Debtors =
18,500 Plant =
2,31,000 Stock =
15,840 (24,000×24%×110%) |
42,000 60,000 9,000 4,000 38,000 7,680 2,65,340 |
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4,26,020 |
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4,26,020 |
Question 24: Ramu, Laxman and Bharat started business on 1st April, 2021 with capitals of `1,00,000, { 80,000 and 60,000 respectively sharing profits and losses in the ratio of 4:3:3. For the year ending 31st March, 2022, the firm incurred loss of 50,000. Each of the partners withdrew 10,000 during the year.
On 31st March, 2022 the firm was dissolved. The creditors of the firm stood at 24,000 on that date and cash in hand was 4,000. Assets realised 3,00,000 and creditors were paid 23,500 in settlement of their claims.
Prepare Realisation Account and show your working clearly.
Answer:
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Capital A/c |
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Particulars |
Ramu |
Laxman |
Bharat |
Particulars |
Ramu |
Laxman |
Bharat |
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To P&L A/c |
20,000 |
15,000 |
15,000 |
By Balance B/d |
1,00,000 |
80,000 |
60,000 |
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To Drawing A/c |
10,000 |
10,000 |
10,000 |
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To Balance C/d |
70,000 |
55,000 |
35,000 |
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1,00,000 |
80,000 |
60,000 |
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1,00,000 |
80,000 |
60,000 |
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Balance Sheet |
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Liabilities |
` |
Assets |
` |
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Capital A/cs: |
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Sundry Assets |
1,80,000 |
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Ramu |
70,000 |
(Bal. figure) |
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Laxman |
55,000 |
Cash in hand |
4,000 |
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Bharat |
35,000 |
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Creditors |
24,000 |
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1,84,000 |
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1,84,000 |
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Realisation A/c |
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Particulars |
` |
Particulars |
` |
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To Sundry Assets |
1,80,000 |
By Creditors |
24,000 |
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To Bank A/c |
23,500 |
By Bank A/c |
3,00,000 |
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To Gain |
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(Sundry Assets realised) |
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Capital A/cs: |
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Ramu- 48,200 |
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Laxman- 36,150 |
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Bharat- 36,150 |
1,20,500 |
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3,24,000 |
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3,24,000 |
Ts Grewal Solution 2023-2024
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Class 12 / Volume – I