Question 21:
Pradeep and Paresh partners in a firm decided to dissolve their partnership
firm on 1st April, 2024. Pradeep was deputed to realise the assets and to pay
off the liabilities. He was paid `10,000
as commission for his services. Balance Sheet of the firm on 31st March, 2024
was as follows:
|
|
BALANCE SHEET as at 31st March, 2024 |
|||||
|
Liabilities |
|
` |
Assets |
|
` |
|
|
Sundry Creditors |
|
1,29,400 |
Building |
|
3,00,000 |
|
|
Mrs. Pradeep's Loan |
|
40,000 |
Investment |
|
30,000 |
|
|
Paresh's Loan |
|
24,000 |
Debtors |
71,400 |
|
|
|
Investment Fluctuation
Reserve |
|
8,000 |
Less: Provision for
Doubtful Debts |
4,000 |
67,400 |
|
|
Capital A/s: |
|
|
Bank |
|
16,000 |
|
|
Pradeep |
1,21,000 |
|
Profit & Loss A/c |
|
20,000 |
|
|
Paresh |
1,21,000 |
2,42,000 |
Goodwill |
|
10,000 |
|
|
|
|
|
|
|
|
|
|
|
|
4,43,400 |
|
|
4,43,400 |
|
Following terms and
conditions were agreed upon:
(a) Pradeep agreed to pay his
wife's loan.
(b) Investment was given to
Paresh for 27,000.
(c) Building realised Rs.
3,50,000.
(d) Creditors were to be paid
after two months, they were paid immediately at 10% p.a. discount.
(e) Realisation expenses were
` 2,500.
Prepare Realisation Account.
Answer:
|
Realisation
Account |
|||||
|
Particulars |
|
` |
Particulars |
|
` |
|
Building |
|
3,00,000 |
Sundry Creditors |
|
1,29,400 |
|
Investment |
|
30,000 |
Mrs. Pradeep's Loan |
40,000 |
|
|
Debtors |
|
71,400 |
Investment Fluctuation Reserve |
8,000 |
|
|
Goodwill |
|
10,000 |
Provision for Doubtful
Debts |
4,000 |
|
|
Pradeep’s Capital A/c |
40,000 |
Paresh’s Capital A/c |
27,000 |
||
|
(Mrs. Pradeep's Loan taken
over) |
|
(Investment taken over) |
|
|
|
|
Bank A/c |
|
1,27,243 |
Bank A/c |
(Building) |
3,50,000 |
|
(Creditors paid) |
|
|
|
(Debtors) |
71,400 |
|
Pradeep’s Capital A/c |
10,000 |
|
|
|
|
|
(Expenses paid) |
|
|
|
|
|
|
Bank A/c |
|
2,500 |
|
|
|
|
(Expenses paid) |
|
|
|
|
|
|
Gain |
|
38,657 |
|
|
|
|
|
|
6,29,800 |
|
|
6,29,800 |
Question 22: 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:
|
BALANCE SHEET OF ASHISH AND KANAV as at 315t March,
2018 |
|||
|
Liabilities |
` |
Assets |
` |
|
Trade Creditors |
42,000 |
Bank |
35,000 |
|
Employees' Provident Fund |
10,000 |
Stock |
24,000 |
|
Mrs. Ashish's Loan |
9,000 |
Debtors |
19,000 |
|
Kanav's Loan |
35,000 |
Furniture |
40,000 |
|
Workmen's Compensation Fund
|
20,000 |
Plant |
2,10,000 |
|
Investment Fluctuation
Reserve |
4,000 |
Investments |
32,000 |
|
Capitals: Ashish: 1,20,000 Kanav: 80,000 |
2,00,000 |
Profit and Loss A/c |
10,000 |
|
|
3,70,000 |
|
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:
|
Realisation a/c |
|||
|
Dr. |
|
|
Cr. |
|
Particulars |
` |
Particulars |
` |
|
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 |
|
|
4,26,020 |
|
4,26,020 |
Question 23: Ramu, Laxman and Bharat started business on
1st April, 2023 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, 2024, the firm incurred loss of 50,000.
Each of the partners withdrew 10,000 during the year.
On 31st March, 2024 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:
|
Capital
A/c |
|||||||
|
Particulars |
Ramu |
Laxman |
Bharat |
Particulars |
Ramu |
Laxman |
Bharat |
|
To P&L A/c |
20,000 |
15,000 |
15,000 |
By Balance B/d |
1,00,000 |
80,000 |
60,000 |
|
To Drawing A/c |
10,000 |
10,000 |
10,000 |
|
|
|
|
|
To Balance C/d |
70,000 |
55,000 |
35,000 |
|
|
|
|
|
|
1,00,000 |
80,000 |
60,000 |
|
1,00,000 |
80,000 |
60,000 |
|
Balance
Sheet |
|||
|
Liabilities |
` |
Assets |
` |
|
Capital A/cs: |
|
Sundry Assets |
1,80,000 |
|
Ramu |
70,000 |
(Bal. figure) |
|
|
Laxman |
55,000 |
Cash in hand |
4,000 |
|
Bharat |
35,000 |
|
|
|
Creditors |
24,000 |
|
|
|
|
|
|
|
|
|
1,84,000 |
|
1,84,000 |
|
Realisation
A/c |
|||
|
Particulars |
` |
Particulars |
` |
|
To Sundry Assets |
1,80,000 |
By Creditors |
24,000 |
|
To Bank A/c |
23,500 |
By Bank A/c |
3,00,000 |
|
To Gain |
|
(Sundry Assets realised) |
|
|
Capital A/cs: |
|
|
|
|
Ramu- 48,200 |
|
|
|
|
Laxman- 36,150 |
|
|
|
|
Bharat- 36,150 |
1,20,500 |
|
|
|
|
|
|
|
|
|
3,24,000 |
|
3,24,000 |
Question 24: 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:
|
BALANCE SHEET OF A, B AND C as at 31st March, 2018 |
|||||
|
Liabilities |
|
` |
Assets |
|
` |
|
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 |
|
|
|
15,00,000 |
|
|
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
|
|||||
Date
|
Particulars
|
|
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
|
31 March
|
Provision for bad debts a/c
Creditors a/c
To Realisation A/c
(Being Liabilities transferred to
realization account)
|
Dr
Dr.
|
|
5,000
2,00,000
|
2,05,000
|
31 March
|
Realisation a/c
To Bank a/c
(Being Creditors and expenses Paid)
|
Dr.
|
|
2,04,000
|
2,04,000
|
31 March
|
Bank a/c
To Realisation A/c
(Being various assets realised)
|
Dr.
|
|
11,49,000
|
11,49,000
|
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
|
12,45,000
|
Ts Grewal Solution 2024-2025
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Class 12 / Volume – I