commercemine

12th | Dissolution of a partnership firm | Question No. 9 To 12 | Ts Grewal Solution 2023-2024

Question 9: The firm of Manjeet, Sujeet and Jagjeet was dissolved on 31st March, 2018. It was agreed that Sujeet will take care of the dissolution related activities and will get 10% of the value of assets realised. Sujeet agreed to bear the realisation expenses. Assets realised 10,00,750 and realisation expenses were 90,000, which were paid from the firm's cash. 4,50,000 were paid to the creditors in full settlement of their claim.


Pass necessary Journal entries for the above transactions in the books of the firm. (CBSE 2019)

 

Answer:         


 

 

Journal

S.N.

Particulars

L.F.

Debits

`

Credit

`

(a)

Bank A/c

Dr.

 

10,00,750

 

To Realisation A/c

 

 

10,00,750

(Being assets realized on dissolution)      

 

 

 

 

 

 

 

(b)

Realisation A/c

Dr.

 

1,00,075

 

To Sujeet’s Capital A/c

 

 

1,00,075

(Being 10% of assets realized on dissolution)

 

 

 

 

 

 

 

(c)

Sujeet’s Capital A/c

Dr.

 

90,000

 

To Bank A/c

 

 

90,000

(Being realization expenses paid)

 

 

 

 

 

 

 

(d)

Realisation A/c

Dr.

 

4,50,000

 

To Bank A/c

 

 

4,50,000

(Being creditors paid in full settlement on dissolution)

 

 

 

 

Question 10:  Nisha, Kamal and Vijay had an automobile spare parts business. Due to strained relationship among the partners, they were unable to take collective decisions for the growth of business. As a result, firm has been in losses for the last 3 yea` The partners decided to dissolve the firm.


Following transactions took place at the time of dissolution:

(i) Shiv, a creditor, to whom 6,000 were due, accepted office equipment at 4,000 and the balance was paid to him.

(ii) Investment, which appeared in the books at 1,00,000, half of it is taken by Mohan, a creditor, at 10% above the book value in settlement of his claim and the remaining half was sold in the market at a loss of 30%.

(iii) Loan of 50,000 advanced by Nisha to the firm was returned.

(iv) Loss on realisation ` 30,000 was distributed among the partners equally.

Journalise the above transactions at the time of dissolution of the firm.

Answer:


Date

Particulars

 

Dr. (`)

Cr. (`)

 

Realisation A/c

Dr.

2,000

 

 

 To Bank A/c

 

 

2,000

 

(Being Creditors paid)

 

 

 

 

 

 

 

 

 

Bank A/c

Dr.

35,000

 

 

 To Realisation A/c

 

 

35,000

 

(Being Creditors paid)

 

 

 

 

Nisha’s Loan A/c

Dr.

 

 

 

To Bank A/c

 

 

 

 

(Being loan paid)

 

 

 

 

Nisha’s Capital A/c

Dr.

10,000

 

 

Kamal’s Capital A/c

Dr.

10,000

 

 

Vijay’s Capital A/c

Dr.

10,000

 

 

  To Realisation A/c

 

 

30,000

 

(Being loss distributed)

 

 

 

 

Question 11:


 

Simar, Raja and Rita were partners in a firm sharing profits and losses in the ratio of 2:2:1.The firm was dissolved on 31st March, 2019. After the transfer of assets (other than cash) and external liabilities to the Realisation Account, the following transactions took place:

(a) A debtor whose debt of `90,000 had been written off as bad, paid `88,000 in full settlement.

(b) Creditors to whom `1,21,000 were due to be paid, accepted stock at ` 71,000 and the balance was paid to them by a cheque.

(c) Raja had given a loan to the firm of ` 18.000. He was paid `17,000 in full settlement of his loan.

(d) Investments were ` 53,000 out of which investments worth ` 43,000 were taken over by Simar at ` 52,000 and the balance of the investments were sold for `12,000.

(e) Expenses on dissolution amounted to `19,000 and the same were paid by the firm.

(f) Profit on dissolution amounted to `30,000.

Pass the necessary Journal entries for the above transactions in the books of the firm. (CBSE 2020)

 

Answer:


Date

Particulars

 

`  (Dr.)

` (Cr.)

(a)

Bank/Cash A/c

Dr.

88,000

 

 

To Realisation A/c

 

 

88,000

 

(Bad Debts recovered )

 

 

(b)

Realisation A/c

Dr.

50,000

 

 

 To Bank A/c

 

 

50,000

 

(Balance paid)

 

 

(c)

Raja's Loan A/c                          Dr.

18,000

 

 

 To Bank/Cash A/c

 

17,000

 

 To Realisation A/c

 

1,000

 

(loan of `18,000 settled at `17,000)

 

 

 

Alternative treatment

 

 

 

Raja's Loan A/c

Dr.

17,000

 

 

 To Bank/Cash A/c

 

 

17,000

 

(Loan was paid)

 

 

 

Raja's Loan A/c                                                   Dr.

 To Realisation A/c

1,000

 

1,000

 

(difference transferred to realisation A/c)

 

 

(e)

Realisation A/c                                                  Dr.

19,000

 

 

 To Cash/Bank A/c

 

19,000

 

(Realisation expenses were paid)

 

 

(f)

Realisation A/c                                                   Dr.

30,000

 

 

 To Simar's Capital A/c

 

12,000

 

 To Raja's Capital A/c

 

12,000

 

 To Rita's Capital A/c

 

6,000

 

(Profit of dissolution distributed)

 

 

 

 

 

 

Question 12:


Pass necessary Journal entries to record the following unrecorded assets and liabilities in the books of Paras and Priya:
(a) There was an old furniture in the firm which had been written off completely in the books. This was sold for  ` 3,000.
(b) Ashish, an old customer whose account for  ` 1,000 was written off as bad in the previous year, paid 60%, of the amount.
(c) Paras agreed to takeover the firm's goodwill (not recorded in the books of the firm), at a valuation of  ` 30,000.
(d) There was an old typewriter which had been written off completely from the books. It was estimated to realise  ` 400. It was taken by Priya at an estimated price less 25%.
(e) There were 100 shares of  ` 10 each in Star Limited acquired at a cost of  ` 2,000 which had been written-off completely from the books. These shares are valued @  ` 6 each and divided among the partners in their profit-sharing ratio.

Answer:


Journal

 

 

Particulars

L.F.

 (         (`)

 ( `)

(a)

Cash/Bank A/c

Dr.

 

3,000

 

 

To Realisation A/c

 

 

 

3,000

 

(Being Old and unrecorded furniture sold)

 

 

 

 

 

 

 

 

(b)

Cash/Bank A/c

Dr.

 

600

 

 

To Realisation A/c

 

 

 

600

 

(Being Bad debts previously written off now recovered)

 

 

 

 

 

 

 

 

(c)

Paras’s Capital A/c

Dr.

 

30,000

 

 

To Realisation A/c

 

 

 

30,000

 

(Being Unrecorded goodwill taken over by Paras)

 

 

 

 

 

 

 

 

(d)

Priya’s Capital A/c

Dr.

 

300

 

 

To Realisation A/c

 

 

 

300

 

(Being Unrecorded Typewriter taken over by Priya at25% less price)

 

 

 

 

 

 

 

 

(e)

Paras’s Capital A/c

Dr.

 

300

 

 

Priya’s Capital A/c

Dr.

 

300

 

 

To Realisation A/c

 

 

 

600

 

(Being 100 unrecorded shares of  ` 10 each in the books taken @  ` 6 each by Paras and Priya and divided between them in profit sharing ratio)

 

 

 

 

 

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