12th | Dissolution of a Partnership Firm | Question No. 41 To 45 | Ts Grewal Solution 2026-2027

Question 41:

Ramu, Laxman and Bharat started business on 1st April, 2025 with capitals of ₹1,00,000, { 80,000 and 60,000 respectively sharing profits and losses in the ratio of 4:3:3. For the year ending 31st March, 2026, the firm incurred loss of 50,000. Each of the partners withdrew 10,000 during the year.

On 1st April, 2026 the firm was dissolved. The creditors of the firm stood at 24,000 on that date and cash in hand was 4,000. Assets realised 3,00,000 and creditors were paid 23,500 in settlement of their claims.

Prepare Realisation Account and show your working clearly.

Answer:

Capital A/c

Particulars

Ramu

Laxman

Bharat

Particulars

Ramu

Laxman

Bharat

To P&L A/c

20,000

15,000

15,000

By Balance B/d

1,00,000

80,000

60,000

To Drawing A/c

10,000

10,000

10,000

 

 

 

 

To Balance C/d

70,000

55,000

35,000

 

 

 

 

 

1,00,000

80,000

60,000

 

1,00,000

80,000

60,000

 

Balance Sheet

Liabilities

₹

Assets

₹

Capital A/cs:

 

Sundry Assets

1,80,000

Ramu

70,000

(Bal. figure)

 

Laxman

55,000

Cash in hand

4,000

Bharat

35,000

 

 

Creditors

24,000

 

 

 

 

 

 

 

1,84,000

 

1,84,000

 

Realisation A/c

Particulars

₹

Particulars

₹

To Sundry Assets

1,80,000

By Creditors

24,000

To Bank A/c

23,500

By Bank A/c

3,00,000

To Gain

 

(Sundry Assets realised)

 

Capital A/cs:

 

 

 

Ramu- 48,200

 

 

 

Laxman- 36,150

 

 

 

Bharat- 36,150

1,20,500

 

 

 

 

 

 

 

3,24,000

 

3,24,000

 

Question 42:

A, B and C started business on 1st April, 2025 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, 2026, the firm suffered a loss of ₹ 50,000. Each of the partners withdrew ₹ 10,000 during the year.
On 31st March, 2026, 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 1Calculation of Partners Capital as on April 01, 2024

Particulars

X

Y

Z

Capital as on April 01, 2026

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, 2025

70,000

55,000

35,000

 

 

 

 


WN 2

Memorandum Balance Sheet

as on March 31, 2026

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 43:

Pritya, Komal and Rakhi 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

 

 

 

 

 

Question 44:

The partnership between A and B was dissolved on 31st March, 2026. 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, 2026

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 45:

X and Y were partners sharing profits and losses in the ratio of 3 : 2. They decided to dissolve the firm on 31st March, 2026. 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, 2026

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

 

 

 

 

 

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