Question 25: A, B and C were partners sharing profits and losses in the ratio of 2:2:1.Their Balance Sheet as at 31st March, 2018 was as follows:
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BALANCE SHEET OF A, B AND C as at 31st March, 2018 |
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Liabilities |
|
` |
Assets |
|
` |
|
Capitals: A B C Creditors |
7,50,000 3,00,000 2,50,000 2,00,000 |
13,00,000 |
Cash at Bank Sundry Debtors Less: Provision for Bad Debts Stock Fixed Assets |
3,00,000 1,95,000 5,000 |
1,90,000 3,00,000 7,10,000 |
|
|
|
15,00,000 |
|
|
15,00,000 |
On the above date they dissolved the firm and following amounts were realised:
Fixed Assets 6,75,000; StockF3,39,000; Debtors1,35,000; Creditors were paid 1,85,000 in full settlement of their claim. Expenses on realisation amounted to F 19,000.
Pass the necessary Journal entries on the dissolution of the firm. (CBSE 2019)
Answer:
Journal
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Date
|
Particulars
|
|
L.F.
|
Dr. `
|
Cr. `
|
31 March
|
Realisation a/c
To
Sundry Debtors a/c
To Stock
A/c
To Fixed
assets A/c
(Being assets transferred to realization account)
|
Dr.
|
|
12,05,000
|
1,95,000
3,00,000
7,10,000
|
31 March
|
Provision for bad debts a/c
Creditors a/c
To
Realisation A/c
(Being
Liabilities transferred to realization account)
|
Dr
Dr.
|
|
5,000
2,00,000
|
2,05,000
|
31 March
|
Realisation a/c
To Bank
a/c
(Being Creditors and expenses Paid)
|
Dr.
|
|
2,04,000
|
2,04,000
|
31 March
|
Bank a/c
To
Realisation A/c
(Being various assets realised)
|
Dr.
|
|
11,49,000
|
11,49,000
|
31 March
|
A’s Capital a/c
B’s Capital a/c
C’s Capital a/c
To
Realisation A/c
(Being Loss on realization transferred to Capitals
account)
|
Dr.
Dr.
Dr.
|
|
22,000
22,000
11,000
|
55,000
|
31 March
|
A’s Capital a/c
B’s Capital a/c
C’s Capital a/c
To Bank
A/c
(Being balance of capital paid to partners)
|
Dr.
Dr.
Dr.
|
|
7,28,000
2,78,000
2,39,000
|
12,45,000
|
Question 26: Mala, Neela and Kala were in partnership sharing profits in the ratio of 7:2:1 and the Balance Sheet of the firm as at 31st March, 2023 was:
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Balance Sheet |
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Liabilities |
` |
Assets |
` |
|
Capital Aes: |
|
Building |
20,000 |
|
Mala -12,410 |
|
Plant |
31,220 |
|
Neela -8,650 |
|
Goodwill |
10,000 |
|
Kala -80,620 |
1,01,680 |
Software |
12,400 |
|
Creditors |
11,210 |
Stock |
11,240 |
|
Reserve for Depreciation on Plant |
20,000 |
Debtors |
8,740 |
|
|
|
Bank |
1,210 |
|
|
|
Patents |
38,080 |
|
|
1,32,890 |
|
1,32,890 |
It was agreed to dissolve the partnership as on 31st March, 2023 and the terms of dissolution were-
(a) Mala to take over the Building at an agreed amount of ` 31,500.
(b) Neela, who was to carry on the business, to take over the Goodwill, Stock and Debtors at book value. The Patents at ` 30,000 and Plant at ` 5,000. He was also to pay the Credito`
Show Ledger Accounts recording the dissolution in the books of the firm.
Answer:
|
Realisation A/c |
|||
|
Particulars |
` |
Particulars |
` |
|
To Building |
20,000 |
By Creditors |
11,210 |
|
To Plant |
31,220 |
By Reserve for Depreciation on Plant |
20,000 |
|
To Goodwill |
10,000 |
By Mala’s capital A/c |
31,500 |
|
To Software |
12,400 |
(Took over building) |
|
|
To Stock |
11,240 |
By Neela’s capital A/c |
|
|
To Debtors |
8,740 |
Goodwill - 10,000 |
|
|
To Patents |
38,080 |
Stock - 11,240 |
|
|
To Neela’s capital A/c |
11,210 |
Debtors - 8,740 |
|
|
(Creditors taken over) |
|
Patents - 30,000 |
|
|
|
|
Plant - 5,000 |
64,980 |
|
|
|
By Loss |
|
|
|
|
Mala’s Cap –10,640 |
|
|
|
|
Neela’s Cap – 3,040 |
|
|
|
|
Kala’s Cap – 1,520 |
15,200 |
|
|
1,42,890 |
|
1,42,890 |
|
Capital A/c |
|||||||
|
Particulars |
Mala |
Neela |
Kala |
Particulars |
Mala |
Neela |
Kala |
|
To Realisation A/c (Assets taken over) |
31,500 |
|
|
By Balance B/d |
12,410 |
8,650 |
80,620 |
|
To Realisation A/c (Assets taken over) |
|
64,980 |
|
By Realisation A/c |
|
11,210 |
|
|
To Realisation A/c (Loss) |
10,640 |
3,040 |
1,520 |
|
|
|
|
|
To Bank A/c |
|
|
79,100 |
By Bank A/c |
29,730 |
48,160 |
|
|
|
42,140 |
68,020 |
80,620 |
|
42,140 |
68,020 |
80,620 |
|
Bank A/c |
|||
|
Particulars |
` |
Particulars |
` |
|
To Balance B/d |
1,210 |
By Kala’s Capital A/c |
79,100 |
|
To Mala’s Capital A/c |
29,730 |
|
|
|
To Neela’s Capital A/c |
48,160 |
|
|
|
|
|
|
|
|
|
79,100 |
|
79,100 |
Question 27: Mike and Ajay are partners sharing profits and losses in ratio of the capitals. They decided to dissolve their firm on 31st March, 2022, the date on which the Balance Sheet stood as under:
|
Balance Sheet |
|||
|
Liabilities |
` |
Assets |
` |
|
Capital A/cs: |
|
Sundry Assets |
16,30,000 |
|
Mike - 6,00,000 |
|
Cash |
70,000 |
|
Ajay - 4,00,000 |
10,00,000 |
|
|
|
Workmen Compensation Reserve |
1,00,000 |
|
|
|
Creditors |
2,00,000 |
|
|
|
Bills Payable |
60,000 |
|
|
|
Others |
3,40,000 |
|
|
|
|
|
|
|
|
|
17,00,000 |
|
17,00,000 |
Following additional information is given:
Sundry assets realised `14,00,000 and the liabilities were discharged as follows:
(i) Creditors due on 31st May, 2022, were paid at a discount of 3% per annum.
(ii) Bills Payable were discharged at a rebate of `1,000.
(iii) Workmen Compensation Claim of `40,000 was met.
(iv) Expenses of dissolution amounting to `30,000 were paid.
You are required to prepare:
(a) Realisation Account.
(b) Partners' Capital Accounts.
Answer:
|
Realisation A/c |
|||
|
Particulars |
` |
Particulars |
` |
|
To Sundry Assets |
16,30,000 |
By Creditors A/c |
2,00,000 |
|
To Bank A/c |
|
By Bills Payable A/c |
60,000 |
|
Creditors - 1,99,000 |
|
By Others A/c |
3,40,000 |
|
Bills Payable – 59,000 |
|
By Bank A/c |
14,00,000 |
|
Other – 3,40,000 |
5,98,000 |
(Sundry assets realized) |
|
|
To Bank A/c (Exp.) |
30,000 |
By Loss transferred to capital A/cs; |
2,58,000 |
|
|
|
Mike – 1,54,800 |
|
|
|
|
Ajay – 1,03,200 |
|
|
|
|
|
|
|
|
22,58,000 |
|
22,58,000 |
|
Capital A/c |
|||||
|
Particulars |
Mike |
Ajay |
Particulars |
Mike |
Ajay |
|
To Realisation A/c (Loss) |
1,54,800 |
1,03,200 |
By Balance B/d |
6,00,000 |
4,00,000 |
|
To Bank A/c |
4,81,200 |
3,20,800 |
By Workmen Compensation Reserve A/c |
36,000 |
24,000 |
|
|
|
|
By Bank A/c |
|
|
|
|
|
|
|
|
|
|
|
6,36,000 |
4,24,000 |
|
6,36,000 |
4,24,000 |
Question 28:
Achal and Vichal were partners in a firm sharing profits in the ratio of 3 : 5. On 31st March, 2022, their Balance Sheet was as follows:
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|
|
|
||||
|
Liabilities |
(`) |
Assets |
(`) |
|||
|
Capital
A/cs:
|
|
Land
and Building |
4,00,000 |
|||
|
Achal |
3,00,000 |
|
Machinery |
|
3,00,000 |
|
|
Vichal |
5,00,000 |
8,00,000 |
Debtor |
|
2,22,000 |
|
|
Creditors
|
1,79,000 |
Cash
at Bank |
|
78,000 |
||
|
Employees'
Provident Fund |
21,000 |
|
|
|
||
|
|
10,00,000 |
|
10,00,000 |
|||
|
|
|
|
|
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The firm was dissolved on 1st April, 2022 and the Assets and Liabilities were
settled as follows:
(a) Land and Building realised ` 4,30,000.
(b) Debtor realised ` 2,25,000 (with interest)
and ` 1,000 were recovered for Bad Debts written off last year.
(c) There was an Unrecorded Investment which was sold for ` 25,000.
(d) Vichal took over Machinery at ` 2,80,000 for cash.
(e) 50% of the Creditors were paid ` 4,000 less in full
settlement and the remaining Creditors
were paid full amount.
Pass necessary Journal entries for dissolution of the firm. (AI 2012, Modified)
Answer:
|
Journal |
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|
Date |
Particulars |
L.F. |
Debit (`) |
Credit (`) |
|
|
2022 |
Realisation
A/c |
|
|
|
|
|
|
To
Land & Building A/c |
|
|
|
4,00,000 |
|
|
To
Machinery A/c |
|
|
|
3,00,000 |
|
|
To
Debtor A/c |
|
|
|
2,22,000 |
|
|
(Being
assets transferred) |
|
|
|
|
|
|
|
|
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Apr.1 |
Creditors A/c |
Dr. |
|
1,79,000 |
|
|
|
Employees’
Provident Fund A/c |
Dr. |
|
21,000 |
|
|
|
To
Realisation A/c |
|
|
|
2,00,000 |
|
|
(Being
liabilities transferred) |
|
|
|
|
|
|
|
|
|
|
|
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Apr.1 |
Bank
A/c |
Dr. |
|
4,30,000 |
|
|
|
To
Realisation A/c |
|
|
|
4,30,000 |
|
|
(Being
Land & Building realised) |
|
|
|
|
|
|
|
|
|
|
|
|
Apr.1 |
Bank
A/c (2,25,000 + 1,000) |
Dr. |
|
2,26,000 |
|
|
|
To
Realisation A/c |
|
|
|
2,26,000 |
|
|
(Being
Debtor realised along-with Bad-debts recovered) |
|
|
|
|
|
|
|
|
|
|
|
|
Apr.1 |
Bank
A/c |
Dr. |
|
25,000 |
|
|
|
To
Realisation A/c |
|
|
|
25,000 |
|
|
(Being
Unrecorded Investments sold) |
|
|
|
|
|
|
|
|
|
|
|
|
Apr.1 |
Bank
A/c |
Dr. |
|
2,80,000 |
|
|
|
To
Realisation A/c |
|
|
|
2,80,000 |
|
|
(Being
Machinery took over by Vichal for Cash) |
|
|
|
|
|
|
|
|
|
|
|
|
Apr.1 |
Realisation
A/c |
Dr. |
|
1,96,000 |
|
|
|
To
Bank A/c (85,500 + 89,500 + 21,000) |
|
|
|
1,96,000 |
|
|
(Being
50% Creditors of ` 89,500 were paid at a discount of ` 4,000 and remaining 50% were settled in full and EPF) |
|
|
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|
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|
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|
Apr.1 |
Realisation
A/c |
Dr. |
|
43,000 |
|
|
|
To
Achal’s Capital A/c |
|
|
|
16,125 |
|
|
To
Vichal’s Capital A/c |
|
|
|
26,875 |
|
|
(Being
profits on realisation transferred) |
|
|
|
|
|
|
|
|
|
|
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|
Apr.1 |
Achal’s
Capital A/c |
Dr. |
|
3,16,125 |
|
|
|
Vichal’s
Capital A/c |
Dr. |
|
5,26,875 |
|
|
|
To
Bank A/c |
|
|
|
8,43,000 |
|
|
(Being
Partners paid off) |
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Ts Grewal Solution 2023-2024
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Class 12 / Volume – I