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

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

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.

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)

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.