commercemine

12th | Dissolution of a partnership firm | Question No. 41 To 44 | Ts Grewal Solution 2023-2024

Question 41:


Srijan, Raman and Manan were partners in a firm sharing profits and losses in the ratio of 2 : 2 : 1. On 31st, March, 2017 their Balance Sheet was as follows:

BALANCE SHEET OF SRIJAN, RAMAN AND MANAN as on 31st March, 2017

Liabilities

(`)

Assets

(`)

Capitals:

 

Capital: Manan

10,000

Srijan

2,00,000

 

Plant

2,20,000

Raman

1,50,000

3,50,000

Investments

70,000

Creditors

 

75,000

Stock

50,000

Bills Payable

 

40,000

Debtor

60,000

Outstanding Salary

 

35,000

Bank

10,000

 

 

 

Profit and Loss Account

80,000

 

 

5,00,000

 

5,00,000

 

 

 

 

 


On the above date they decided to dissolve the firm.
(a) Srijan was appointed to realise the assets and discharge the liabilities. Srijan was to receive 5% commission on sale of assets (except cash) and was to bear all expenses of realisation.
(b)

Assets were realised as follows:

 `

Plant

85,000

Stock

33,000

Debtor

47,000

 

(c) Investments were realised at 95% of the book value.
(d) The firm had to pay 
` 7,500 for an outstanding repair bill not provided for earlier.
(e) A contingent liability in respect of bills receivable, discounted with the bank had also materialised and had to be discharged for 
`15,000.
(f) Expenses of realisation amounting to 
` 3,000 were paid by Srijan.
Prepare Realisation Account, Partners' Capital Accounts and Bank Account.

Answer:


Dr.

Realisation A/c

Cr.

Particulars

 (`)

Particulars

 (`)

To Plant

2,20,000

By Creditors

75,000

To Investments

70,000

By Bills Payable

40,000

To Stock

50,000

By Outstanding Salary

35,000

To Debtor

60,000

 

 

 

 

 

 

To Srijan’s Capital A/c (Commission)

11,575

By Bank A/c:

 

To Bank A/c:

 

 Investments

66,500

 

  Outstanding Bill Repair

7,500

 

  Plant

85,000

 

  Contingent liability against bills payable

15,000

 

  Stock

33,000

 

  Creditors

75,000

 

  Debtor

47,000

2,31,500

  Bills Payable

40,000

 

 

 

  Outstanding Salary

35,000

1,72,500

By Loss on Realisation transferred to:     

 

 

 

  Srijan’s Capital A/c

81,030

 

 

 

  Raman’s Capital A/c

81,030

 

 

 

  Manan’s Capital A/c

40,515

2,02,575

 

 

 

 

 

5,84,075

 

5,84,075

 

 

 

 

    

Dr.

Partner’s Capital A/c

Cr.

Particulars

Srijan

(`)

Raman

(`)

Manan

(`)

Particulars

Srijan

(`)

Raman

(`)

Manan

(`)

To balance b/d

 

 

10,000

By balance b/d

2,00,000

1,50,000

 

To Realisation A/c (Loss)

81,030

81,030

40,515

By Realisation A/c (Commission)

11,575

 

 

To Profit & Loss A/c

32,000

32,000

16,000

 

 

 

 

To Bank A/c (Final Payment)

98,545

36,970

By Bank A/c

 

 

66,515

 

 

 

 

 

 

 

 

 

2,11,575

1,50,000

66,515

 

2,11,575

1,50,000

66,515

 

 

 

 

 

 

 

 

 

Dr.

Bank A/c

Cr.

Particulars

 (`)

Particulars

 (`)

To balance b/d

10,000

By Srijan’s Capital A/c

98,545

To Realisation A/c (Asset Realised)

2,31,500

By Raman’s Capital A/c

36,970

To Manan’s Capital A/c

66,515

By Realisation A/c (Liabilities Paid)

1,72,500

 

 

 

 

 

3,08,015

 

3,08,015

 

 

 

 

 

Question 42:  Raina and Meena were partners in a firm which they dissolved on 31st March, 2023.


On this date, Balance Sheet of the firm, apart from realisable assets and outside liabilities showed the following

Raina's Capital

40,000 (Cr)

Meena's Capital

20,000 (Dr.)

Profit & Loss Account

10,000 (Dr.)

Raina's Loan to the Firm

15,000

General Reserve

7,000

On the date of dissolution of the firm:

(a) Raina's loan was repaid by the firm along with interest of `500.

(b) Dissolution expenses of `1,000 were paid by the firm on behalf of Raina.

(c) An unrecorded asset of ` 2,000 was taken by Meena while Raina paid an unrecorded liability of ` 3,000.

(d) Dissolution resulted in a loss of ` 60,000 from the realisation of assets and settlement of liabilities.

You are required to prepare Partners Capital Accounts.

Answer:


Capital A/c

Particulars

Raina

Meena

Particulars

Raina

Meena

To Balance B/d

-

20,000

By Balance B/d

40,000

-

To P&L A/c

5,000

5,000

By G.R. A/c

3,500

3,500

To Realisation A/c (Loss)

1,000

-

By Realisation A/c

3,000

-

To Realisation A/c

-

2,000

(Liabilities taken)

 

 

(Liabilities Taken)

 

 

By Bank A/c

-

53,500

To Realisation A/c

30,000

30,000

 

 

 

(Loss)

 

 

 

 

 

To Bank A/c

10,500

-

 

 

 

 

46,500

57,000

 

46,500

57,000

 

 

 Question 43:


 

There are two partners X and Y in a firm and their capitals are  ` 50,000 and  ` 40,000. The Creditors  are  ` 30,000. The assets of the firm realise  ` 1,00,000. How much will X and Y receive?

Answer:


Realisation Account   

Dr.

 

Cr.

Particulars

`

Particulars

`

Sundry Assets (WN)     

1,20,000

Creditors

30,000

Cash A/c

30,000

Cash A/c

1,00,000

 

 

Loss transferred to:

 

 

 

X’s Capital A/c

10,000

 

 

 

Y’s Capital A/c

10,000

20,000

 

1,50,000

 

1,50,000

 

 

 

 

 

Partners Capital Accounts

Dr.

 

Cr.

Particulars

X

Y

Particulars

X

Y

Realisation A/c (Loss)

10,000

10,000

Balance b/d

50,000

40,000

Cash A/c

40,000

30,000

 

 

 

 

 

 

 

 

 

 

50,000

40,000

 

50,000

40,000

 

 

 

 

 

 

 

Cash Account   

 

Dr.

 

Cr.

 

Particulars

Amount

 `

Particulars

Amount

 `

 

Realisation A/c

1,00,000

Realisation A/c

30,000

 

 

 

X’s Capital A/c

40,000

 

 

 

Y’s Capital A/c

30,000

 

 

 

 

 

 

 

1,00,000

 

1,00,000

 

 

 

 

 

 


Working Note: 

Memorandum Balance Sheet

Liabilities 

`

Assets 

`

Capital A/c

 

Sundry Assets

1,20,000

X

50,000

 

(Balancing Figure)

 

Y

40,000

90,000

 

 

Creditors

30,000

 

 

 

 

 

 

 

1,20,000

 

1,20,000

 

 

 

 

 

Question 44:


A, B and C were partners sharing profits in the ratio of 5 : 3 : 2. On 31st March, 2023, 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

 

 

 

 

 

 

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