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:
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Liabilities |
(`) |
Assets |
(`) |
|||
|
Capital
A/cs:
|
|
Building |
80,000 |
|||
|
Ashu |
1,08,000 |
|
Machinery |
|
70,000 |
|
|
Harish |
54,000 |
1,62,000 |
Furniture |
|
14,000 |
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|
Creditors
|
88,000 |
Stock |
|
20,000 |
||
|
Bank
Overdraft |
50,000 |
Investments |
|
60,000 |
||
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Debtor |
|
48,000 |
||
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Cash
in Hand |
|
8,000 |
||
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||
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3,00,000 |
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3,00,000 |
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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 |
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||||
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Ashu’s
Capital A/c (Creditors ) |
88,000 |
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||||
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Harish’s
Capital A/c (Bank Overdraft) |
50,000 |
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||||
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Cash
(Expenses) |
3,000 |
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||||
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Realisation
Profit |
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|
||||
|
Ashu’s
Capital A/c |
3,600 |
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|||
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Harish’s
Capital A/c |
2,400 |
6,000 |
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|||
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4,39,000 |
|
4,39,000 |
||||
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||||
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Partners Capital Account |
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||||||
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Dr. |
|
Cr. |
|
||||
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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 |
||
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Realisation
(Profit) |
3,600 |
2,400 |
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Cash |
|
5,600 |
||
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|
1,99,600 |
1,12,000 |
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1,99,600 |
1,12,000 |
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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 |
|
|
|
|
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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 |
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Question 34:
A, B and C were
equal partners. On 31st March, 2023, their Balance Sheet stood as:
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Liabilities |
(`) |
Assets |
(`) |
|
|
Creditors
|
50,400 |
Cash |
3,700 |
|
|
Reserve |
12,000 |
Stock |
20,100 |
|
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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 |
|
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Building |
23,500 |
|
|
1,42,400 |
|
1,42,400 |
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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 |
|
|
||||
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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 |
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|||
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Cash
A/c: |
|
Stock
and Debtor |
80,000 |
1,09,700 |
|||
|
Expenses |
1,300 |
|
|
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|||
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Creditors
|
49,600 |
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|
|||
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Bills |
1,500 |
52,400 |
Loss
transferred to : |
|
|||
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A’s
Capital A/c |
1,000 |
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|||
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B’s
Capital A/c |
1,000 |
|
|||
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C’s
Capital A/c |
1,000 |
3,000 |
|||
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|
||||
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|
1,81,100 |
|
1,81,100 |
||||
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||||
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Partners Capital Accounts |
|||||||||
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Dr. |
|
Cr. |
|||||||
|
Particulars |
A |
B |
C |
Particulars |
A |
B |
C |
||
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Realisation
A/c (Investment) |
18,000 |
– |
– |
Balance
b/d |
40,000 |
25,000 |
15,000 |
||
|
Realisation
A/c |
1,000 |
1,000 |
1,000 |
Reserve |
4,000 |
4,000 |
4,000 |
||
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Cash
A/c |
25,000 |
28,000 |
18,000 |
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|
44,000 |
29,000 |
19,000 |
|
44,000 |
29,000 |
19,000 |
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A’s Loan A/c |
|||||
|
Dr. |
Cr. |
||||
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Particulars |
(`) |
Particulars |
(`) |
||
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Balance b/d |
10,000 |
Bank A/c |
10,000 |
||
|
|
|
|
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||
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|
10,000 |
|
10,000 |
||
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|
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 |
||
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A's
Loan A/c |
10,000 |
B’s
Capital A/c |
28,000 |
||
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C’s
Capital A/c |
18,000 |
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|
1,23,400 |
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1,23,400 |
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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 |
|
|
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John |
10,000 |
1,10,000 |
|
|
|
|
|
1,81,000 |
|
1,81,000 |
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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 Debtor 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 |
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 |
|||||
|
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|
|||||
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|
Partners Capital Accounts |
|
|||||||||
|
|
Dr. |
|
Cr. |
|
|||||||
|
Particulars |
Michael |
Jackson |
John |
Particulars |
Michael |
Jackson |
John |
||||
|
Profit
and Loss A/c |
|
|
|
Balance
b/d |
60,000 |
40,000 |
10,000 |
||||
|
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 |
10,000 |
||
|
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 |
||
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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 |
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
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Class 12 / Volume – I