commercemine

12th | Dissolution of a partnership firm | Question No. 33 To 36 | Ts Grewal Solution 2023-2024

Question 33:


Ashu and Harish are partners sharing profit and losses as 3 : 2 . They decided to dissolve the firm on 31st March, 2023. Their Balance Sheet on the above date was:

 

 

 

Liabilities

(`)

Assets

   (`)

Capital A/cs:                       

 

Building

80,000

Ashu

1,08,000 

 

Machinery

 

70,000

Harish

54,000

1,62,000

Furniture

 

14,000

Creditors

88,000

Stock

 

20,000

Bank Overdraft

50,000

Investments

 

60,000

 

 

Debtor

 

48,000

 

 

Cash in Hand

 

8,000

 

 

 

 

 

 

3,00,000

 

3,00,000

 

 

 

 

Ashu is to take over the building at  ` 95,000 and Machinery and Furniture is taken over by Harish at value of  ` 80,000. Ashu agreed to pay Creditor and Harish agreed to meet Bank overdraft. Stock and Investments are taken by both partner in profit-sharing ratio. Debtor realised for  ` 46,000, expenses of realisation amounted to  ` 3,000. Prepare necessary Ledger Accounts.

Answer:


Realisation Account

 

Dr.

 

Cr.

 

Particulars

 (`)

Particulars

 (`)

Building

80,000

Creditors

88,000

Machinery

70,000

Bank overdraft

50,000

Furniture

14,000

Ashu’s Capital A/c (see working note)

1,43,000

Stock

20,000

Harish’s Capital A/c (see working note)

1,12,000

Investments

60,000

Cash (Debtor)

46,000

Debtor

48,000

 

 

Ashu’s Capital A/c (Creditors )

88,000

 

 

Harish’s Capital A/c (Bank Overdraft)

50,000

 

 

Cash (Expenses)

3,000

 

 

Realisation Profit

 

 

 

Ashu’s Capital A/c

3,600

 

 

 

Harish’s Capital A/c

2,400

6,000

 

 

 

4,39,000

 

4,39,000

 

 

 

 

 

Partners Capital Account

 

Dr.

 

Cr.

 

Particulars

Ashu

Harish

Particulars

Ashu

Harish

Realisation (Assets taken)

1,43,000

1,12,000

Balance b/d

1,08,000

54,000

Cash

56,600

 

Realisation (Liabilities)

88,000

50,000

 

 

 

Realisation (Profit)

3,600

2,400

 

 

 

Cash

 

5,600

 

1,99,600

1,12,000

 

1,99,600

1,12,000

 

 

 

 

 

 

 

Cash Account

Dr.

 

 

Cr.

Particulars

 (`)

Particulars

(`)

Balance b/d

8,000

Realisation (Expenses)

3,000

Realisation (Debtor)

46,000

Ashu’s Capital A/c

56,600

Harish’s Capital A/c

5,600

 

 

 

59,600

 

59,600

 

 

 

 


Working Notes :
 

 

Ashu

Harish

Building

95,000

 

Machinery and Furniture

 

80,000

Stock (3:2)

12,000

8,000

Investment (3:2)

36,000

24,000

 

1,43,000

1,12,000

 

 

 

 

Question 34:


A, B and C were equal partners. On 31st March, 2023, their Balance Sheet stood as:

 

 

Liabilities

(`)

Assets

(`)

Creditors

50,400

Cash

3,700

Reserve

12,000

Stock

20,100

Capital A/cs:

 

Debtor

62,600

   A 

40,000

 

Loan to A

10,000

   B

25,000

 

Investments

16,000

   C

15,000

80,000

Furniture

6,500

 

 

 

Building

23,500

 

1,42,400

 

1,42,400

 

 

 

 

   
The firm was dissolved on the above date on the following terms:
(a) For the purpose of dissolution, Investments were valued at 
` 18,000 and A took over the Investments at this value.
(b) Fixed Assets realised  ` 29,700 whereas Stock and Debtor realised 
` 80,000.
(c) Expenses of realisation amounted to  ` 1,300.
(d) Creditors  allowed a discount of 
` 800.
(e) One Bill receivable for  ` 1,500 under discount was dishonoured as the acceptor had become insolvent and was unable to pay anything and hence the bill had to be met by the firm.
Prepare Realisation Account, Partner's Capital Accounts and Cash Account showing how the accounts would finally be settled among the partners.

Answer:


Realisation Account

Dr.

 

Cr.

Particulars

 (`)

Particulars

 (`)

Stock

20,100

Creditors

50,400

Debtor

62,600

 

 

Investments                              

16,000

A’s Capital A/c (Investments)

18,000

Furniture

6,500

Cash A/c:

 

Building

23,500

Furniture and Building

29,700

 

Cash A/c:

 

Stock and Debtor

80,000

1,09,700

Expenses

1,300

 

 

 

Creditors

49,600

 

 

 

Bills

1,500

52,400

Loss transferred to :

 

 

 

A’s Capital A/c

1,000

 

 

 

B’s Capital A/c

1,000

 

 

 

C’s Capital A/c

1,000

3,000

 

 

 

 

 

1,81,100

 

1,81,100

 

 

 

 

 

Partners Capital Accounts

Dr.

 

Cr.

Particulars

A

B

C

Particulars

A

B

C

Realisation A/c (Investment)

18,000

Balance b/d      

40,000

25,000

15,000

Realisation A/c
(Loss)

1,000

1,000

1,000

Reserve

4,000

4,000

4,000

Cash A/c

25,000

28,000

18,000

 

 

 

 

 

44,000

29,000

19,000

 

44,000

29,000

19,000

 

 

 

 

 

 

 

 

 

A’s Loan A/c

Dr.

Cr.

Particulars

 (`)

Particulars

 (`)

Balance b/d

10,000

Bank A/c

10,000

 

 

 

 

 

10,000

 

10,000

 

 

 

 

 Cash  Account  

Dr.

 

Cr.

particulars

 (`)

Particulars

 (`)

Balance b/d

3,700

Realisation A/c

52,400

Realisation A/c

1,09,700

A’s Capital A/c

25,000

A's Loan A/c

10,000

B’s Capital A/c

28,000

 

 

C’s Capital A/c

18,000

 

1,23,400

 

1,23,400

 

 

 

 

 

Question 35:


Michael, Jackson and John are in partnership sharing profits and losses in the proportions of 1/2, 1/3 and 1/6 respectively. On 31st March, 2022, they decided to dissolve the partnership and the position of the firm on this date is represented by the following Balance Sheet:

Liabilities

Amount
(
`)

Assets

Amount
(
`)

Creditors

40,000

Cash at Bank

3,000

Loan A/c:

 

Stock

50,000

Michael

10,000

Sundry Debtor

50,000

Workmen Compensation Reserve

21,000

Land and Building

57,000

Capital A/cs:

 

Profit and Loss A/c

15,000

 Michael

60,000

 

Advertisement Suspense A/c

6,000

 Jackson

40,000

 

 

 

 John

10,000

1,10,000

 

 

 

1,81,000

 

1,81,000

 

 

 

 

During the realisation, a liability under a suit for damages is settled at  ` 20,000 as against  ` 5,000 only provided for in the books of the firm.
Land and Building were sold for  ` 40,000 and the Stock and Sundry Debto
r realised  ` 30,000 and  ` 42,000 respectively. The expenses of realisation amounted to  ` 1,200.
There was a car in the firm, which was completely written off from the books. It was taken by Michael for  ` 20,000. He also agreed to pay Outstanding Salary of  ` 20,000 not provided in books.
Prepare Realisation Account, Partners' Capital Accounts and Bank Account in the books of the firm.

 

Answer:


Realisation Account

Dr.

 

Cr.

Particulars

 (`)

Particulars

 (`)

Land and Building

57,000

Creditors

40,000

Stock

50,000

Bank

 

Sundry Debtor

50,000

Land and building

40,000

 

 

 

Stock

30,000

 

Bank A/c:

 

Sundry   Debtor

42,000

1,12,000

Creditors 

(40,000
+ 15,000)

55,000

 

 

 

Expenses

1,200

56,200

Loss transferred to:

 

 

 

Michael’s Capital A/c

30,600

 

 

 

Jackson’s Capital A/c

20,400

 

 

 

John’s Capital A/c

10,200

61,200

 

2,13,200

 

2,13,200

 

 

 

 

 

 

Partners Capital Accounts

 

 

Dr.

 

Cr.

 

Particulars

Michael

Jackson

John

Particulars

Michael

Jackson

John

Profit and Loss A/c
Advertisement Suspense A/c
Realisation A/c (Loss)


7,500

3,000

30,600


5,000

2,000

20,400


2,500

1,000

10,200

Balance b/d
Workmen Compensation Reserve A/c
 
  Bank A/c

60,000


10,500
------

40,000


7,000
------

10,000


3,500

200

Bank A/c

29,400

19,600

-------

 

 

 

 

 

 

 

 

 

 

 

 

 

70,500

47,000

13,700

 

70,500

47,000

13,700

 

 

 

 

 

 

 

 

 

Michael’s Loan Account  

Dr.

 

Cr.

Particulars

 (`)

Particulars

 (`)

Bank A/c

10,000

Balance b/d

10,000

 

 

 

 

 

 

 

 

 

10,000

 

10,000

 

 

 

 

 

Bank Account  

Dr.

 

Cr.

Particulars

 (`)

Particulars

 (`)

Balance b/d

3,000

Michael’s Loan A/c
Realisation A/c

10,000
56,200

Realisation A/c

1,12,000

Michael’s Capital A/c

29,400

John’s Capital A/c

200

Jackson’s Capital A/c

19,600

 

 

 

 

 

1,15,200

 

1,15,200

 

 

 

 

 

Question 36:


Prashant and Rajesh are partners in a firm sharing profits and losses in the ratio of 2 : 1. On 31st March, 2022, their Balance Sheet was:

Liabilities

   (`)

Assets

(`)

Bank Overdraft                   

30,000

Cash in Hand

6,000

General Reserve

56,000

Bank Balance

10,000

Investments Fluctuation Reserve           

20,000

Sundry Debtor

26,000

 

Prashant 's Loan

34,000

Less: Provision for Doubtful Debtor

2,000

24,000

Capital A/c:

 

                                

 

Prashant

50,000

Investments

40,000

 

 

 

Stock

 

10,000

 

 

Furniture

 

10,000

 

 

Building

 

60,000

 

 

Rajesh 's Capital

 

30,000

 

1,90,000

 

1,90,000

 

 

 

 


On that date, the partners decide to dissolve the firm. Prashant took over Investments at an agreed valuation of  ` 35,000. Other assets were realised as follows:
Sundry Debtor: Full amount. The firm could realise Stock at 15% less and Furniture at 20% less than the book value. Building was sold at  ` 1,00,000.
Compensation to employees paid by the firm amounted to  ` 10,000. This liability was not provided for in the above Balance Sheet.
You are required to close the books of the firm by preparing Realisation Account, Partners' Capital Accounts and Bank Account.

Answer:


Realisation Account

Dr.

 

Cr.

Particulars

 (`)

Particulars

 (`)

Sundry Debtor 

26,000

Provision for Doubtful Debts  

2,000

Investments

40,000

Bank Overdraft

30,000

Stock

10,000

Investments Fluctuation Reserve   

20,000

Furniture

10,000

 

 

Building

60,000

Prashant’s Capital A/c (Investments)

35,000

Bank A/c:

 

Bank A/c:

 

Compensation to
Employees

10,000

 

Sundry Debtor 

26,000

 

Bank Overdraft

30,000

40,000

Stock

8,500

 

Profit transferred to:                  

 

Furniture

8,000

 

Prashant’s Capital A/c

29,000

 

Building

1,00,000

1,42,500

Rajesh’s Capital A/c       

14,500

43,500

 

 

 

2,29,500

 

2,29,500

 

 

 

 

 

 

Partners Capital Accounts

Dr.

 

Cr.

Particulars

Prashant

Rajesh

Particulars

Prashant

Rajesh

Balance b/d

30,000

Balance b/d

50,000

Realisation A/c (Investment)

35,000

 

General Reserve A/c

37,333

18,667

Bank A/c

81,333

3,167

Realisation A/c (Profit )

29,000

14,500

 

 

 

 

 

 

 

1,16,333

33,167

 

1,16,333

33,167

 

 

 

 

 

 

 

Prashant’s Loan Account 

Dr.

 

Cr.

Particulars

Amount

(`)

Particulars

Amount

(`)

 

 

Balance b/d

34,000

Bank A/c

34,000

 

 

 

34,000

 

34,000

 

 

 

 

 

Bank Account   

Dr.

 

Cr.

Particulars

Amount

(`)

Particulars

Amount

(`)

Balance b/d

10,000

Realisation A/c           

40,000

Cash A/c

6,000

Prashant’s Capital A/c

81,333

Realisation A/c          

1,42,500

Rajesh’s Capital A/c

3,167

 

 

Prashant’s Loan  A/c

34,000

 

1,58,500

 

1,58,500

 

 

 

 

 

 

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