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12th | Dissolution of a Partnership Firm | Question No.  41 To 43 | Ts Grewal Solution 2022-2023

Question 41:


The partnership between A and B was dissolved on 31st March, 2022. On that date the respective credits to the capitals were A −  ` 1,70,000 and B −  ` 30,000.  ` 20,000 were owed by B to the firm;  ` 1,00,000 were owed by the firm to A and  ` 2,00,000 were due to the Trade Creditors . Profits and losses were shared in the proportions of 2/3 to A, 1/3 to B.
The assets represented by the above stated net liabilities realise 
` 4,50,000 exclusive of  ` 20,000 owed by B. The liabilities were settled at book figures. Prepare Realisation Account, Partners' Capital Accounts and Cash Account showing the distribution to the partners.

Answer:


Realisation Account

Dr.

 

Cr.

Particulars

 ( `)

Particulars

 ( `)

Sundry Assets (WN)

4,80,000

Trade Creditors

2,00,000

B’s Loan

20,000

 

 

 

 

Cash (Assets realised)

4,50,000

Cash A/c (Creditors )        

2,00,000

B’s Capital A/c (B’s Loan)

20,000

 

 

Loss transferred to:

 

 

 

A’s Capital A/c

20,000

 

 

 

B’s Capital A/c

10,000

30,000

 

 

 

 

 

7,00,000

 

7,00,000

 

 

 

 

 

 

 

 

 

 

 

Partners Capital Accounts

 

Dr.

 

Cr.

 

Particulars

A

B

Particulars

A

B

 

Realisation A/c

20,000

Balance b/d

1,70,000

30,000

 

Realisation A/c (Loss)

20,000

10,000

 

 

 

 

Cash A/c

1,50,000

 

 

 

 

 

 

 

 

 

 

 

 

 

1,70,000

30,000

 

1,70,000

30,000

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Cash Account

Dr.

 

Cr.

Particulars

 ( `)

Particulars

 ( `)

Realisation A/c (Assets)

4,50,000

Realisation A/c (Creditors )

2,00,000

 

 

A’s Capital A/c

1,50,000

 

 

A’s Loan A/c

1,00,000

 

 

 

 

 

4,50,000

 

4,50,000

 

 

 

 

Working Notes:

Memorandum Balance Sheet
as at 31st March, 2022

Liabilities

 ( `)

Assets

 ( `)

Capital A/cs:

 

B’s Loan

20,000

A

1,70,000

 

 

 

B

30,000

2,00,000

Sundry Assets

4,80,000

A’s Loan

1,00,000

(Balancing figure)

 

Trade Creditors

2,00,000

 

 

 

 

 

 

 

5,00,000

 

5,00,000

 

 

 

 

 

Question 42:


X and Y were partners sharing profits and losses in the ratio of 3 : 2. They decided to dissolve the firm on 31st March, 2022. On that date, their Capitals were X − `40,000 and Y −  ` 30,000. Creditors amounted to ` 24,000.
Assets were realised for 
`88,500. Creditors of `16,000 were taken over by X at `14,000. Remaining Creditors were paid at ` 7,500. The cost of realisation came to `500.
Prepare necessary accounts.

Answer:


Realisation Account   

 

Dr.

 

Cr.

 

Particulars

 ( `)

Particulars

 ( `)

 

Sundry Assets

94,000

Creditors

24,000

 

X’s Capital A/c (Creditors )

14,000

Cash (Assets Realised)

88,500

 

Cash A/c:

 

Loss transferred to:

 

 

 Creditors

7,500

 

X’s Capital A/c

2,100

 

 

 Expenses

500

8,000

Y’s Capital A/c

1,400

3,500

 

 

 

 

 

 

 

1,16,000

 

1,16,000

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Partners Capital Accounts

Dr.

 

Cr.

Particulars

X

Y

Particulars

X

Y

Realisation A/c (Loss)

2,100

1,400

Balance b/d

40,000

30,000

Cash A/c

51,900

28,600

Realisation A/c
(Creditors )

14,000

 

 

 

 

 

 

 

54,000

30,000

 

54,000

30,000

 

 

 

 

 

 

 

Cash Account   

Dr.

 

Cr.

Particulars

 ( `)

Particulars

 ( `)

Realisation A/c (Assets)

88,500

Realisation A/c

8,000

 

 

X’s Capital A/c

51,900

 

 

Y’s Capital A/c

28,600

 

88,500

 

88,500

 

 

 

 

Working Notes

Memorandum Balance Sheet

as on March 31, 2022

Liabilities 

 ( `)

Assets 

 ( `)

Capital A/cs:

 

Sundry Assets

94,000

X

40,000

 

(Balancing figure)

 

Y

30,000

70,000

 

 

Creditors

24,000

 

 

 

 

 

 

 

94,000

 

94,000

 

 

 

 

 

Question 43:


P, Q and R are partners sharing profits and losses in the ratio of 3 : 3 : 2 respectively. Their respective capitals are in their profit-sharing proportions. On 1st April, 2021, the total capital of the firm and the balance of General Reserve are  ` 80,000 and  ` 20,000 respectively. During the year 2021-22, the firm made a profit of  ` 28,000 before charging interest on capital @ 5%. The drawings of the partners are P ` 8,000; Q ` 7,000; and R ` 5,000. On 31st March, 2022, their liabilities were  `18,000.
On this date, they decided to dissolve the firm. The assets realised 
`1,08,600 and realisation expenses amounted to  ` 1,800.
Prepare necessary Ledger Accounts to close the books of the firm.

Answer:



Dr.

Realistationn Account


Cr.

 

Particulars

 ( `)

Particulars

 ( `)

 

Sundry Assets (WN 1)

1,26,000

Creditors

18,000

 

 

 

Cash A/c

(Assets Realised)

1,08,600

 

Cash A/c:

 

Loss transferred to:

 

 

Creditors

18,000

 

P’s Capital A/c

7,200

 

 

Expenses

1,800

19,800

Q’s Capital A/c

7,200

 

 

 

 

R’s Capital A/c

4,800

19,200

 

 

 

 

 

 

 

1,45,800

 

1,45,800

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Partners Capital Accounts

Dr.

 

Cr.

Particulars

P

Q

R

Particulars

P

Q

R

Drawings A/c

8,000

7,000

5,000

Balance b/d

30,000

30,000

20,000

Realisation A/c (Loss)

7,200

7,200

4,800

Interest on Capital A/c

1,500

1,500

1,000

Cash A/c

32,800

33,800

22,200

P/L Appropriation A/c (WN 3)

9,000

9,000

6,000

 

 

 

 

General Reserve

7,500

7,500

5,000

 

48,000

48,000

32,000

 

48,000

48,000

32,000

 

 

 

 

 

 

 

 

 

Cash Account   

Dr.

 

Cr.

Particulars

 ( `)

Particulars

 ( `)

Realisation A/c

1,08,600

Realisation A/c

19,800

 

 

P’s Capital A/c

32,800

 

 

Q’s Capital A/c

33,800

 

 

R’s Capital A/c

22,200

 

 

 

 

 

1,08,600

 

1,08,600

 

 

 

 


Working Note:

WN 1

Memorandum Balance Sheet
as on 31st March, 2022
 

Liabilities 

 ( `)

Assets 

 ( `)

Capital A/cs:

 

Sundry Assets

1,26,000

P (WN 2)

22,000

 

(Balancing figure)

 

Q (WN 2)

23,000

 

 

 

R (WN 2)

15,000

60,000

 

 

General Reserve

20,000

 

 

Profit and Loss A/c

28,000

 

 

Creditors

18,000

 

 

 

1,26,000

 

1,26,000

 

 

 

 


WN 2

Computation of Partners' Capital after drawings as on 31st March, 2022

Dr.

 

Cr.

Particulars

P

Q

R

Particulars

P

Q

R

Drawings A/c

8,000

7,000

5,000

Balance b/d

30,000

30,000

20,000

Adjusted Capital

22,000

23,000

15,000

 

 

 

 

 

30,000

30,000

20,000

 

30,000

30,000

20,000

 

 

 

 

 

 

 

 

 WN 3

Profit and Loss Appropriation Account

Dr.

for the year ending 31st March, 2022

Cr.

Particulars

 ( `)

Particulars

 ( `)

Interest on Capital A/cs:

 

Profit and Loss A/c

28,000

P’s Capital A/c

1,500

 

 

 

Q’s Capital A/c

1,500

 

 

 

R’s Capital A/c

1,000

4,000

 

 

Profit transferred to:

 

 

 

P’s Capital A/c

9,000

 

 

 

Q’s Capital A/c

9,000

 

 

 

R’s Capital A/c

6,000

24,000

 

 

 

 

 

 

 

28,000

 

28,000

 

 

 

 

 

 

Ts Grewal Solution 2022-2023

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