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12th | Dissolution of a partnership firm | Question No. 29 To 32 | Ts Grewal Solution 2023-2024

Question 29:


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:

 

Liabilities

 `

Assets

 `

 

Capital A/cs:

 

Building

45,000

 

Bale

50,000

 

Machinery

15,000

 

Yale

40,000

90,000

Furniture

12,000

 

General Reserve

 

8,000

Debtor

8,000

 

Bale's Loan A/c

 

3,000

Stock

24,000

 

Creditors

 

14,000

Bank

11,000

 

 

 

 

 

 

 

 

 

1,15,000

 

1,15,000

 

 

 

 

 

 

 

(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

Dr.

 

Cr.

Particulars

 (`)

Particulars

 (`)

Building

45,000

Creditors

14,000

Machinery

15,000

Bank  A/c:

 

Furniture

12,000

Stock

22,000

 

Debtor

8,000

Debtor

7,500

 

Stock

24,000

Machinery

16,000

 

 

 

Building

35,000

80,500

Bank A/c:

 

 

 

Creditors

14,000

 

Bale’s Loan

500

Expenses

2,500

16,500

Yale’s Capital A/c (Furniture)

9,000

 

 

Loss transferred to:

 

 

 

Bale’s Capital A/c

8,250

 

 

 

Yale’s Capital A/c

8,250

16,500

 

1,20,500

 

1,20,500

 

 

 

 


Partners’ Capital Accounts

 

Dr.

 

Cr.

 

Particulars

Bale

Yale

Particulars

Bale

Yale

 

Realisation A/c (Loss)

8,250

8,250

Balance b/d

50,000

40,000

 

Realisation A/c

9,000

General Reserve       
(Old Ratio)   

4,000

4,000

 

Bank A/c

45,750

26,750

 

 

 

 

 

 

 

 

 

 

 

 

54,000

44,000

 

54,000

44,000

 

 

 

 

 

 

 

 

 

 

Bale’s Loan Account

Dr.

 

Cr.

Particulars

 (`)

Particulars

 (`)

Bank A/c

2,500

Balance b/d

3,000

Realisation A/c

500

 

 

 

 

 

 

 

3,000

 

3,000

 

 

 

 

 

Bank Account 

Dr.

 

Cr.

Particulars

 (`)

Particulars

 (`)

Balance b/d

11,000

Bale’s Loan

2,500

Realisation A/c

80,500

Realisation A/c

16,500

 

 

Bale’s Capital A/c

45,750

 

 

Yale’s Capital A/c

26,750

 

 

 

 

 

91,500

 

91,500

 

 

 

 

 

Question 30:


Shilpa, Meena and Nanda decided to dissolve their partnership on 31st March, 2023. Their profit-sharing ratio was 3 : 2 : 1 and their Balance Sheet was as under:
 

BALANCE SHEET OF SHILPA, MEENA AND NANDA as at 31st March, 2022

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

 

 

 

 

 

 

 

 

 

1,90,200

 

1,90,200

 

 

 

 

 

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

 

Dr.

 

Cr.

 

Particulars

 (`)

Particulars

 (`)

Land

81,000

Bank Loan

20,000

Stock

56,760

Creditors

37000

Debtor

18,600

Provision for doubtful debts

1,200

Shilpa’s Capital A/c

20,000

Shilpa’s Capital A/c (Stock)

35,000

Cash:

 

Cash:

 

Creditors

31000

 

Stock

14000

 

Realisation Expenses

1,200

32200

Debtor

12300

Realisation Profit

 

Land

1,10,000

1,36,300

Shilpa’s Capital A/c

10,470

 

 

 

 

 

Meena’s Capital A/c

6,980

 

 

 

Nanda’s Capital A/c

3,490

20,940

 

 

 

2,29,500

 

2,29,500

 

 

 

 

 

Partners Capital Account

 

Dr.

 

Cr.

 

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

(Stock)

 

 

 

Realisation

20,000

 

 

Cash

81,470

50,980

 

(Bank Loan)

 

 

 

 

 

 

 

Realisation (Profit)

10,470

6,980

3,490

 

 

 

 

Cash

 

 

17,510

 

1,16,470

50,980

23,000

 

1,16,470

50,980

23,000

 

 

 

 

 

 

 

 

 

Cash Account

 

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

Nanda’s Capital A/c

17,510

Meena’s Capital A/c

50,980

 

 

 

 

 

1,64,650

 

1,64,650

 

 

 

 

 

Question 31:


A and B are partners in a firm sharing profits and losses in the ratio of 3 : 2. On 31st March, 2023, their Balance Sheet was as follows:

BALANCE SHEET as at 31st March, 2022

Liabilities

(`)

Assets

(`)

Creditors

38,000

Cash at Bank

11,500

Mr. A's Loan

10,000

Stock

6,000

B's Loan

15,000

Debtor

19,000

Reserve

5,000

Furniture

4,000

A's Capital

10,000

 

Plant

28,000

B's Capital

8,000

18,000

Investments

10,000

 

 

 

Profit and Loss A/C

7,500

 

 

 

 

 

 

 

86,000

 

86,000

 

 

 

 

 


The firm was dissolved on 31st March, 2023 and both the partners agreed to the following:
(a) A took Investments at an agreed value of 
` 8,000. He also agreed to settle M `. A's Loan.
(b) Other assets realised as: Stock  ` 5,000; Debtor  −
 ` 18,500; Furniture  −  ` 4,500; Plant  −  ` 25,000.
(c) Expenses of realisation came to  ` 1,600.
(d) Creditors  agreed to accept 
` 37,000 in full settlement of their claims.
Prepare Realisation Account, Partners' Capital Accounts and Bank Account.

Answer:


Realisation Account

Dr.

 

Cr.

Particulars

 (`)

Particulars

 (`)

 

Stock

6,000

Creditors

38,000

 

Debtor

19,000

M `. A’s Loan

10,000

 

Furniture

4,000

 

 

 

Plant

28,000

A’s Capital A/c (Investments)

8,000

 

Investments

10,000

Bank A/c:

 

 

A’s Capital A/c

(M `. A’s loan)

10,000

Stock

5,000

 

 

Bank A/c :

 

Debtor

18,500

 

 

Expenses

1,600

 

Furniture

4,500

 

 

Creditors

37,000

38,600

Plant

25,000

53,000

 

 

 

Loss transferred to:

 

 

 

 

A’s Capital A/c

3,960

 

 

 

 

B’s Capital A/c

2,640

6,600

 

 

1,15,600

 

1,15,600

 

 

 

 

 

 

 

Partners Capital Accounts

 

Dr.

 

Cr.

 

Particulars

A

B

Particulars

A

B

 

Realisation (loss)

3,960

2,640

Balance b/d

10,000

8,000

 

Realisation A/c

8,000

Reserve A/c

3,000

2,000

 

Profit and Loss A/c

4,500

3,000

Realisation A/c   

10,000

 

Bank A/c

6,540

4,360

 

 

 

 

 

23,000

10,000

 

23,000

10,000

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

B’s Loan Account    

Dr.

 

Cr.

Particulars

 (`)

Particulars

 (`)

 

 

Balance b/d

15,000

Bank A/c

15,000

 

 

 

15,000

 

15,000

 

 

 

 

 

Bank Account  

Dr.

 

Cr.

Particulars

 (`)

Particulars

 (`)

Balance b/d

11,500

Realisation A/c

38,600

Realisation A/c

53,000

A’s Capital A/c

6,540

 

 

B’s Capital A/c

4,360

 

 

B’s Loan A/c

15,000

 

64,500

 

64,500

 

 

 

 

 

Question 32:


Balance Sheet of P, Q and R as at 31st March, 2023, who were sharing profits in the ratio of 5 : 3 : 1, was:
 

Liabilities

 (`)

Assets

 (`)

Bills Payable

40,000

Cash at Bank

40,000

Loan from Bank

30,000

Stock

19,000

General Reserve

9,000

Sundry Debtor

42,000

 

Capital A/cs:

 

Less: Provision for Doubtful Debts

2,000

40,000

P

44,000

 

 

 

Q

36,000

 

Building

40,000

R

20,000

1,00,000

Plant and Machinery

40,000

 

 

 

 

 

 

1,79,000

 

1,79,000

 

 

 

 

 
The partners dissolved the business. Assets realised − Stock  ` 23,400; Debtor 50%; Fixed Assets 10% less than their book value. Bills Payable were settled for  ` 32,000. There was an Outstanding Bill of Electricity  ` 800 which was paid off. Realisation expenses  ` 1,250 were also paid.
Prepare Realisation Account, Partner's Capital Accounts and Bank Account.

Answer:


Realisation Account

Dr.

 

Cr.

Particulars

 (`)

Particulars

 (`)

Building

40,000

Provision for Doubtful Debts

2,000

Plant and machinery

40,000

Bills Payable

40,000

Stock

19,000

Loan from Bank

30,000

Sundry Debtor

42,000

 

 

Bank A/c:

 

Bank A/c:

 

Bills Payable

32,000

 

Stock

23,400

 

Outstanding Bill

800

 

Debtor

21,000

 

Expenses

1,250

 

Building

36,000

 

  Loan from Bank    

30,000

64,050

Plant and Machinery

36,000

1,16,400

 

 

Loss transferred to:

 

 

 

P’s Capital A/c

9,250

 

 

 

Q’s Capital A/c

5,550

 

 

 

RCapital A/c

1,850

16,650

 

2,05,050

 

2,05,050

 

 

 

 

 

Partners Capital Accounts

Dr.

 

Cr.

Particulars

P

Q

R

Particulars

P

Q

R

Realisation A/c (Loss)

9,250

5,550

1,850

Balance b/d

44,000

36,000

20,000

 

 

 

 

Reserve Fund

5,000

3,000

1,000

Bank A/c

39,750

33,450

19,150

 

 

 

 

 

49,000

39,000

21,000

 

49,000

39,000

21,000

 

 

 

 

 

 

 

 

 

Bank  Account 

Dr.

 

Cr.

Particulars

 (`)

Particulars

 (`)

Balance b/d

40,000

Realisation A/c

64,050

Realisation A/c

1,16,400

P’s Capital A/c

39,750

 

 

Q’s Capital A/c

33,450

 

 

R’s Capital A/c

19,150

 

1,56,400

 

1,56,400

 

 

 

 

 

Ts Grewal Solution 2023-2024

Click below for more Questions

Class 12 / Volume – I

Chapter 7 – Dissolution of a partnership firm

 

Question No. 1 To 4

Question No. 5 To 8

Question No. 9 To 12

Question No. 13 To 16

Question No. 17 To 20

Question No. 21 To 24

Question No. 25 To 28

Question No. 29 To 32

Question No. 33 To 36

Question No. 37 To 40

Question No. 41 To 44

Question No. 45 To 48

Question No. 49 And 50