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12th | Dissolution of a Partnership Firm | Question No.  37 To 40 | Ts Grewal Solution 2022-2023

Question 37:


A, B and C were partners sharing profits in the ratio of 5 : 3 : 2. On 31st March, 2022, A's Capital and B's Capital were  ` 30,000 and  ` 20,000 respectively but C owed  ` 5,000 to the firm. The liabilities were ` 20,000. The assets of the firm realised ` 50,000. 
Prepare Realisation Account, Partner's Capital Accounts and Bank Account.

Answer:


Realisation Account   

Dr.

 

Cr.

Particulars

`

Particulars

`

Sundry Assets (WN)            

65,000

Creditors

20,000

Cash A/c (Creditors )

20,000

Cash A/c (Assets realised)

50,000

 

 

Loss transferred to:

 

 

 

A’s Capital A/c

7,500

 

 

 

B’s Capital A/c

4,500

 

 

 

C’s Capital A/c

3,000

15,000

 

85,000

 

85,000

 

 

 

 

 

Partners Capital Accounts

Dr.

 

Cr.

Particulars

A

B

C

Particulars

A

B

C

Balance b/d

5,000

Balance b/d

30,000

20,000

Realisation A/c (Loss)

7,500

4,500

3,000

Cash A/c

8,000

Cash A/c

22,500

15,500

 

 

 

 

 

 

 

 

 

 

 

 

 

30,000

20,000

8,000

 

30,000

20,000

8,000

 

 

 

 

 

 

 

 

 

Cash Account   

Dr.

 

Cr.

Particulars

`

Particulars

`

Realisation A/c (Assets)

50,000

Realisation A/c (Creditors )

20,000

C’s Capital A/c

8,000

A’s Capital A/c

22,500

 

 

B’s Capital A/c

15,500

 

 

 

 

 

58,000

 

58,000

 

 

 

 


Working Note:

Memorandum Balance Sheet

as on March 31, 2022

Liabilities 

`

Assets 

`

Capital A/c

 

C’s Capital A/c

5,000

A

30,000

 

Sundry Assets

65,000

B

20,000

50,000

(Balancing Figure)

 

Other liabilities

20,000

 

 

 

70,000

 

70,000

 

 

 

 

 

Question 38:


A and B were partners sharing profits and losses as to 7/11th to A and 4/11th to B. They dissolved the partnership on 30th May, 2021. As on that date their capitals were: A  ` 7,000 and B  ` 4,000. There were also due on Loan A/c to A  ` 4,500 and to B  ` 750. The other liabilities amounted to  ` 5,000. The assets proved to have been undervalued in the last Balance Sheet and actually realised  ` 24,000.
Prepare necessary accounts showing the final settlement between partners.
 

Answer:


Realisation Account   

Dr.

 

Cr.

Particulars

`

Particulars

`

Sundry Assets (WN)

21,250

Other liabilities 

5,000

Cash A/c (Liabilities)

5,000

Cash A/c (Assets Realised)

24,000

Profit transferred to:

 

 

 

A’s Capital A/c

1,750

 

 

 

B’s Capital A/c

1,000

2,750

 

 

 

 

 

 

 

29,000

 

29,000

 

 

 

 

 

Partners Capital Accounts

Dr.

 

Cr.

Particulars

A

B

Particulars

A

B

Cash A/c

8,750

5,000

Balance b/d

7,000

4,000

 

 

 

Realisation A/c
(Profit)

1,750

1,000

 

8,750

5,000

 

8,750

5,000

 

 

 

 

 

 

 

Partners Loan Accounts

 

Dr.

 

Cr.

 

Particulars

A

B

Particulars

A

B

 

Cash A/c

4,500

750

Balance b/d

4,500

750

 

 

 

 

 

 

 

 

 

4,500

750

 

4,500

750

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Cash Account   

 

Dr.

 

Cr.

 

Particulars

`

Particulars

`

 

Realisation A/c  (Assets)   

24,000

A’s Capital A/c                  

8,750

 

 

 

B’s Capital A/c

5,000

 

 

 

A’s Loan A/c

4,500

 

 

 

B’s Loan A/c

750

 

 

 

Realisation A/c

5,000

 

 

 

 

 

 

 

24,000

 

24,000

 

 

 

 

 

 


Working Note

Memorandum Balance Sheet

as on May 30, 2021

Liabilities 

`

Assets 

`

Capital A/cs:

 

Sundry Assets

21,250

A

7,000

 

(Balancing Figure)

 

B

4,000

11,000

 

 

A’s Loan

4,500

 

 

B’s Loan

750

 

 

Other Liabilities

5,000

 

 

 

 

 

 

 

21,250

 

21,250

 

 

 

 

Question 39:


A, B and C started business on 1st April, 2021 with capitals of  ` 1,00,000;  ` 80,000 and  ` 60,000 respectively sharing profits (losses) in the ratio of 4 : 3 : 3. For the year ended 31st March, 2022, the firm suffered a 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. The assets realised  ` 3,00,000 and Creditors  were paid  ` 23,500 in full settlement of their claims.
Prepare Realisation Account and show your workings clearly.

Answer:


Realisation Account   

 

Dr.

 

Cr.

 

Particulars

 ( `)

Particulars

 ( `)

 

Sundry Assets (WN 2)

1,80,000

Sundry Creditors

24,000

 

Cash A/c (Creditors )

23,500

Cash A/c (Assets)

3,00,000

 

Profit transferred to:

 

 

 

 

A’s Capital A/c

48,200

 

 

 

 

B’s Capital A/c

36,150

 

 

 

 

C’s Capital A/c

36,150

1,20,500

 

 

 

 

 

 

 

 

 

3,24,000

 

3,24,000

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Partners Capital Accounts

Dr.

 

Cr.

Particulars

A

B

C

Particulars

A

B

C

 

 

 

 

Balance b/d

70,000

55,000

35,000

Cash A/c

1,18,200

91,150

71,150

Realisation A/c

48,200

36,150

36,150

 

 

 

 

 

 

 

 

 

1,18,200

91,150

71,150

 

1,18,200

91,150

71,150

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Cash Account   

Dr.

 

Cr.

Particulars

 ( `)

Particulars

 ( `)

Balance b/d

4,000

Realisation A/c

23,500

Realisation A/c

3,00,000

A’s Capital A/c

1,18,200

 

 

B’s Capital A/c

91,150

 

 

C’s Capital A/c

71,150

 

 

 

 

 

3,04,000

 

3,04,000

 

 

 

 


Working Notes:

WN 1 Calculation of Partners Capital as on April 01, 2022
 

Particulars

X

Y

Z

Capital as on April 01, 2021

1,00,000

80,000

60,000

Less: Drawings

(10,000)

(10,000)

(10,000)

Less: Share of Loss (4 : 3 : 3)

(20,000)

(15,000)

(15,000)

Capital as on April 01, 2022

70,000

55,000

35,000

 

 

 

 


WN 2

Memorandum Balance Sheet

as on March 31, 2022

Liabilities 

 ( `)

Assets 

 ( `)

Capital A/cs:

 

Cash in Hand

4,000

A

70,000

Sundry Assets

1,80,000

B

55,000

(Balancing figure)

 

C

35,000

 

 

Creditors

24,000

 

 

 

 

 

 

 

1,84,000

 

1,84,000

 

 

 

 

 

Question 40:


A, B and C were in partnership sharing profits and losses in the ratio of 2 : 1 : 1. They decided to dissolve the partnership. On that date of dissolution, Sundry Assets (including cash  ` 5,000) amounted to  ` 88,000, assets realised  ` 80,000 (including an unrecorded asset which realised  ` 4,000). A contingent liability on account of bills discounted  ` 8,000 was paid by the firm. The Capital Accounts of A, B and C showed a balance of  ` 20,000 each.
Prepare Realisation Account, Partners' Capital Accounts and Cash Account.

Answer:


Realisation Account   

 

Dr.

 

Cr.

 

Particulars

`

Particulars

`

 

Sundry Assets

83,000

Sundry Liabilities (WN )

28,000

 

 

 

Cash A/c (Assets realised)

80,000

 

Cash A/c:

 

Loss transferred to:

 

 

Sundry  Liabilities

28,000

 

A’s Capital A/c

5,500

 

 

Contingent Liabilities

8,000

36,000

B’s Capital A/c

2,750

 

 

 

 

C’s Capital A/c

2,750

11,000

 

 

1,19,000

 

1,19,000

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Partners Capital Accounts

Dr.

 

Cr.

Particulars

A

B

C

Particulars

A

B

C

Realisation A/c (Loss)

5,500

2,750

2,750

Balance b/d

20,000

20,000

20,000

Bank A/c

14,500

17,250

17,250

 

 

 

 

 

 

 

 

 

 

 

 

 

20,000

20,000

20,000

 

20,000

20,000

20,000

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Cash Account   

Dr.

 

Cr.

Particulars

`

Particulars

`

Balance b/d

5,000

Realisation A/c

36,000

Realisation A/c

80,000

A’s Capital A/c

14,500

 

 

B’s Capital A/c

17,250

 

 

C’s Capital A/c

17,250

 

 

 

 

 

85,000

 

85,000

 

 

 

 


Working Notes:

Memorandum Balance Sheet

Liabilities 

`

Assets 

`

Capital A/cs:

 

Cash in Hand

5,000

A

20,000

 

Sundry Assets

83,000

B

20,000

 

 

 

C

20,000

60,000

 

 

Sundry Liabilities

28,000

 

 

(Balancing figure)

 

 

 

 

88,000

 

88,000

 

 

 

 

 

Ts Grewal Solution 2022-2023

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