Question
9:
Charu,
Dhwani, Iknoor and Paavni were partners in a firm. They had entered into
partnership firm last year only, through a verbal agreement. They contributed
Capitals in the firm and to meet other financial requirements, few partners
also provided loan to the firm. Within a year, their conflicts arisen due to
certain disagreements and they decided to dissolve the firm. The firm had
appointed Ms. Kavya, who is a financial advisor and
legal consultant, to carry on the dissolution process. In the first instance,
Ms. Kavya had transferred various assets and external
liabilities to Realisation Account. Due to her busy
schedule; Ms. Kavya has delegated this assignment to
you, being an intern in her firm. On the date of dissolution, you have observed
the following transactions:
(i) Dhwani's
Loan of ₹50,000 to the firm was settled by paying ₹42,000.
(ii) Paavni's Loan of ₹40,000
was settled by giving an unrecorded asset of ₹ 45,000.
(iii) Loan to Charu of ₹60,000
was settled by payment to Charu's brother loan of the
same amount.
(iv) lknoor's
Loan of ₹ 80,000 to the firm and she took over Machinery of ₹
60,000 as part payment.
You are required to pass necessary entries for all
the above mentioned transactions.
(CBSE Sampe Paper 2023)
Answer:
|
Date |
Particulars |
|
Dr.
(₹) |
Cr.
(₹) |
|
|
Dhwani's
Loan A/c |
Dr. |
50,000 |
|
|
|
To Realisation A/c |
|
|
8,000 |
|
|
To Bank A/c |
|
|
42,000 |
|
|
(Being Dhwani’s loan
settled by paying ₹42,000) |
|
|
|
|
|
Paavni's
Loan A/c |
Dr. |
40,000 |
|
|
|
To Realisation A/c |
|
|
40,000 |
|
|
(Being Loan of ₹40,000 was settled by giving
an unrecorded asset of ₹ 45,000) |
|
|
|
|
|
Realisation
A/c |
Dr. |
60,000 |
|
|
|
To Loan to Charu |
|
|
60,000 |
|
|
(Being Loan to Charu
settled by payment to Charu's brother loan) |
|
|
|
|
|
lknoor's
Loan A/c |
Dr. |
80,000 |
|
|
|
To Realisation A/c |
|
|
60,000 |
|
|
To Bank A/c |
|
|
20,000 |
|
|
(Being Loan to the firm and she took over
Machinery) |
|
|
|
Question 10:
Pass Journal entries for the following at the time of
dissolution of a firm:
(a) Sale of Assets − ₹50,000.
(b) Payment of Liabilities − ₹10,000.
(c) A commission of 5% allowed to Mr. X, a partner, on sale of assets.
(d) Realisation expenses amounted to ₹15,000.
The firm had agreed with Amrit, a partner, to
reimburse him up to ₹ 10,000.
(e) Employees provident fund ₹10,000,
(f) Z, an old customer, whose account for ₹6,000 was
written off as bad in the previous year, paid 60% of the amount written off.
(g) Investment (Book Value ₹10,000) realised
at 150%.
(h) Realisation expenses
were ₹10,000. The firm had agreed with krishan
a partner, to reimburse him up to ₹7,500.
Answer:
|
Journal |
|||||
|
S.N. |
Particulars |
L.F. |
Debits ₹ |
Credit ₹ |
|
|
(a) |
Cash A/c |
Dr. |
|
50,000 |
|
|
To Realisation A/c |
|
|
50,000 |
||
|
(Assets realized for cash) |
|
|
|
||
|
|
|
|
|
||
|
(b) |
Realisation A/c |
Dr. |
|
10,000 |
|
|
To
Cash A/c |
|
|
10,000 |
||
|
(Payment of liabilities made) |
|
|
|
||
|
|
|
|
|
||
|
(c) |
Realisation A/c |
Dr. |
|
2,500 |
|
|
To
X’s Capital A/c |
|
|
2,500 |
||
|
(5% commission allowed to Mr. X’s on sale of assets
of ₹ 50,000) |
|
|
|
||
|
|
|
|
|
||
|
(d)() (e) |
Realisation A/c |
Dr. |
|
10,000 |
|
|
To Amrit’s Capital A/c |
|
|
10,000 |
||
|
(Amrit was allowed
remuneration on account of realisation) |
|
|
|
||
|
Amrit’s Capital A/c |
Dr. |
|
15,000 |
|
|
|
To
Cash A/c |
|
|
15,000 |
||
|
(Realisation expenses paid
on behalf of amrit) |
|
|
|
||
|
Alternatively,
only one single entry can also be passed instead of above two entries. |
|
|
|
||
|
Realisation A/c |
Dr. |
|
10,000 |
|
|
|
Amrit’s Capital A/c |
Dr. |
|
5,000 |
|
|
|
To Cash A/c |
|
|
15,000 |
||
|
(Realisation expenses
paid) |
|
|
|
||
|
|
|
|
|
||
|
Realization A/c Dr. |
|
|
|
||
|
To Cash A/c |
|
|
|
||
|
(Paid provident fund) |
|
|
|
||
|
|
|
|
|
||
|
(f) |
Cash A/c |
Dr. |
|
3,600 |
|
|
To Realisation
A/c |
|
|
3,600 |
||
|
(60% of the Bad debts against Z an old
customer now recovered) |
|
|
|
|
|
|
|
|
|
|
||
|
(g) |
Cash A/c |
Dr. |
|
15,000 |
|
|
To Realisation A/c |
|
|
15,000 |
||
|
|
(Investments are realised
at 150%) |
|
|
|
|
|
|
|
|
|
|
|
|
(h) |
Realisation A/c |
|
7,500 |
|
|
|
|
To Krishna’s
Capital A/c |
|
|
7,500 |
|
|
|
(Krishna, a partner, reimbursed for realization
expenses) |
|
|
|
|
|
|
|
|
|
|
|
Question
11:
Pass necessary Journal entries for the following transactions, on the
dissolution of a partnership firm of Kavita and Suman on 31st March, 2022, after the various assets (other
than cash) and third party liabilities have been transferred to Realisation Account.
(a) Kavita took Over stock
amounting to ₹1,00,000 at ₹90,000.
(b) Creditors of ₹2,00,000
took over Plant and Machinery of 3,00,000 in full settlement of their claim.
(c) There was an unrecorded asset of ₹23,000
which was taken over by Suman at ₹17,000.
(d) Realisation expenses ₹2,000
were paid by Kavita.
(e) Bank Loan of ₹21,000 was paid off.
(f) Loss on dissolution amounted to ₹7000.
(CBSE 2023)
Answer:
|
|
Journal |
||||||||||
|
S.N. |
Particulars |
L.F. |
Debits ₹ |
Credit ₹ |
|||||||
|
(a) |
Kavita's Capital A/c |
Dr. |
|
90,000 |
|
||||||
|
To Realisation A/c |
|
|
90,000 |
||||||||
|
|
|
|
|
||||||||
|
(b) |
No Entry |
|
|
- |
- |
||||||
|
(c) |
Suman's Capital A/c |
|
|
17,000 |
|
||||||
|
To Realisation A/c |
|
|
17,000 |
||||||||
|
|
|
|
|
||||||||
|
(d) |
Realisation A/c |
Dr. |
|
2,000 |
|
||||||
|
To Kavita's Capital A/c |
|
|
2,000 |
||||||||
|
|
|
|
|
||||||||
|
(e) |
Realisation A/c |
Dr. |
|
21,000 |
|
|
||||||
|
To Bank A/c |
|
|
21,000 |
|
||||||||
|
|
|
|
|
|
||||||||
|
(f) |
Kavita's Capital A/c |
Dr. |
|
3,500 |
|
|
||||||
|
Sumarn's Capital A/c |
|
3,500 |
|
|
||||||||
|
To Realisation A/c |
|
|
7,000 |
|
||||||||
Question 12:
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) |
|
|
|
|
|
|
|
|
|
Ts Grewal Solution 2025-2026
Click below for more Questions
Class 12 / Volume – I