Question 33:
Prashant
and Rajesh are partners in
a firm sharing profits and losses in the ratio of 2 :
1. On 31st March, 2025, their Balance Sheet was:
|
Liabilities |
(₹) |
Assets |
(₹) |
|||
|
Bank
Overdraft
|
30,000 |
Cash in
Hand |
6,000 |
|||
|
General
Reserve |
56,000 |
Bank
Balance |
10,000 |
|||
|
Investments
Fluctuation Reserve |
20,000 |
Sundry
Debtor |
26,000 |
|
||
|
Prashant 's Loan |
34,000 |
Less: Provision for Doubtful Debtor |
2,000 |
24,000 |
||
|
Capital
A/c: |
|
|
|
|||
|
Prashant |
50,000 |
Investments |
40,000 |
|||
|
|
|
|
Stock |
|
10,000 |
|
|
|
|
Furniture |
|
10,000 |
||
|
|
|
Building |
|
60,000 |
||
|
|
|
Rajesh 's Capital |
|
30,000 |
||
|
|
1,90,000 |
|
1,90,000 |
|||
|
|
|
|
|
|||
On that date, the partners decide to dissolve the firm. Prashant
took over Investments at an agreed valuation of ₹ 35,000. Other
assets were realised as follows:
Sundry Debtor: Full amount. The firm could realise
Stock at 15% less and Furniture at 20% less than the book
value. Building was sold at ₹ 1,00,000.
Compensation to employees paid by the firm amounted to ₹ 10,000.
This liability was not provided for in the above Balance Sheet.
You are required to close the books of the firm by preparing Realisation Account, Partners' Capital Accounts and Bank
Account.
Answer:
|
Realisation Account |
||||||||
|
Dr. |
|
Cr. |
||||||
|
Particulars |
(₹) |
Particulars |
(₹) |
|||||
|
Sundry Debtor |
26,000 |
Provision for Doubtful Debts |
2,000 |
|||||
|
Investments |
40,000 |
Bank Overdraft |
30,000 |
|||||
|
Stock |
10,000 |
Investments Fluctuation Reserve |
20,000 |
|||||
|
Furniture |
10,000 |
|
|
|||||
|
Building |
60,000 |
Prashant’s
Capital A/c (Investments) |
35,000 |
|||||
|
Bank A/c: |
|
Bank A/c: |
|
|||||
|
Compensation
to |
10,000 |
|
Sundry
Debtor |
26,000 |
|
|||
|
Bank
Overdraft |
30,000 |
40,000 |
Stock |
8,500 |
|
|||
|
Profit transferred
to:
|
|
Furniture |
8,000 |
|
||||
|
Prashant’s
Capital A/c |
29,000 |
|
Building |
1,00,000 |
1,42,500 |
|||
|
Rajesh’s Capital
A/c |
14,500 |
43,500 |
|
|
||||
|
|
2,29,500 |
|
2,29,500 |
|||||
|
|
|
|
|
|||||
|
Partners Capital
Accounts |
|||||||
|
Dr. |
|
Cr. |
|||||
|
Particulars |
Prashant |
Rajesh |
Particulars |
Prashant |
Rajesh |
||
|
Balance b/d |
– |
30,000 |
Balance b/d |
50,000 |
– |
||
|
Realisation A/c (Investment) |
35,000 |
|
General Reserve A/c |
37,333 |
18,667 |
||
|
Bank A/c |
81,333 |
3,167 |
Realisation A/c (Profit ) |
29,000 |
14,500 |
||
|
|
|
|
|
|
|
||
|
|
1,16,333 |
33,167 |
|
1,16,333 |
33,167 |
||
|
|
|
|
|
|
|
||
|
Prashant’s Loan Account |
|||||
|
Dr. |
|
Cr. |
|||
|
Particulars |
Amount (₹) |
Particulars |
Amount (₹) |
||
|
|
|
Balance b/d |
34,000 |
||
|
Bank A/c |
34,000 |
|
|
||
|
|
34,000 |
|
34,000 |
||
|
|
|
|
|
||
|
Bank Account
|
||||
|
Dr. |
|
Cr. |
||
|
Particulars |
Amount (₹) |
Particulars |
Amount (₹) |
|
|
Balance b/d |
10,000 |
Realisation
A/c |
40,000 |
|
|
Cash A/c |
6,000 |
Prashant’s
Capital A/c |
81,333 |
|
|
Realisation A/c
|
1,42,500 |
Rajesh’s Capital A/c |
3,167 |
|
|
|
|
Prashant’s
Loan A/c |
34,000 |
|
|
|
1,58,500 |
|
1,58,500 |
|
|
|
|
|
|
|
Question 34:
Yogesh and Naresh were partners
sharing profits equally. They dissolved the firm on 1st April, 2025. Naresh was assigned the responsibility to realise the assets and pay the liabilities at a
remuneration of ₹10,000 including expenses. Balance Sheet of the
firm as on that date was as follows:
|
Liabilities |
(₹) |
Assets |
(₹) |
||
|
Creditors
|
40,000 |
Cash/Bank |
6,000 |
||
|
Bills
Payable |
40,000 |
Investments |
30,000 |
||
|
Naresh's Loan |
44,000 |
Debtor |
40,000 |
|
|
|
M₹.
Yogesh's Loan |
42,000 |
Less: Provision for Doubtful Debts |
4,000 |
36,000 |
|
|
Investment
Fluctuation Reserve |
|
8,000 |
Bills
Receivable |
33,400 |
|
|
Capital
A/cs: |
|
|
Profit
and Loss A/c |
1,10,600 |
|
|
Yogesh |
21,000 |
|
|
|
|
|
Naresh |
21,000 |
42,000 |
|
|
|
|
|
|
|
|
|
|
|
|
2,16,000 |
|
2,16,000 |
||
|
|
|
|
|
||
The firm
was dissolved on following terms:
(a) Yogesh was to pay his wife's loan.
(b) Debtor realised ₹30,000.
(c) Naresh was to take investments at an agreed value
of ₹ 26,000.
(d) Creditors and
Bills Payable were payable after two months but were paid immediately at a
discount of 15% p.a.
(e) Bills Receivable were received allowing 5% rebate.
(f) A Debtor previously written off as Bad Debt paid ₹15,000.
(g) An unrecorded asset realised ₹10,000.
Prepare Realisation Account, Partners' Capital
Accounts, Partners' Loan Account and Cash/Bank Account.
Answer:
|
Dr. |
Realisation A/c |
Cr. |
||||||
|
Particulars |
(₹) |
Particulars |
(₹) |
|||||
|
To
Investments |
30,000 |
By
Investment Fluctuation Reserve |
8,000 |
|||||
|
To
Debtor |
40,000 |
By
Provision for Doubtful Debts |
4,000 |
|||||
|
To Bills
Receivable |
33,400 |
By
Creditors |
40,000 |
|||||
|
|
|
By Bills
Payable |
40,000 |
|||||
|
To Yogesh’s Capital A/c (Wife’s Loan) |
42,000 |
By M₹.
Yogesh’s Loan |
42,000 |
|||||
|
To
Cash/Bank A/c: |
|
|
|
|||||
|
Creditors [40,000 – (40,000 × 15/100 × 2/12)] |
39,000 |
|
By
Cash/Bank A/c: |
|
||||
|
Bills
Payable [40,000 – (40,000 × 15/100 × 2/12)] |
39,000 |
78,000 |
Debtor |
30,000 |
|
|||
|
|
|
Bills Receivable |
31,730 |
|
||||
|
To Naresh’ Capital A/c (Commission) |
10,000 |
Bad Debt Recovered |
15,000 |
|
||||
|
To Realisation Gain transferred to: |
|
Unrecorded Asset |
10,000 |
86,730 |
||||
|
Yogesh’s Capital A/c |
6,665 |
|
|
|
||||
|
Naresh’s Capital A/c |
6,665 |
13,330 |
By Naresh’s Capital A/c (Investment taken over) |
26,000 |
||||
|
|
|
|
|
|||||
|
|
2,46,730 |
|
2,46,730 |
|||||
|
|
|
|
|
|||||
|
Dr. |
Partner’s Capital
A/c |
Cr. |
|||||
|
Particulars |
Yogesh (₹) |
Naresh (₹) |
Particulars |
Yogesh (₹) |
Naresh (₹) |
||
|
To Realisation A/ c (Asset taken over) |
|
26,000 |
By
balance b/d |
21,000 |
21,000 |
||
|
|
|
|
By Realisation A/c (Gain) |
6,665 |
6,665 |
||
|
To
Profit & Loss A/c |
55,300 |
55,300 |
By Realisation A/c (Liability paid) |
42,000 |
|
||
|
To
Cash/Bank A/c |
14,365 |
– |
|
|
|
||
|
|
|
|
By Realisation A/c (Commission) |
|
10,000 |
||
|
|
|
|
By Naresh’s Loan A/c |
|
43,635 |
||
|
|
|
|
|
|
|
||
|
|
69,665 |
81,300 |
|
69,665 |
81,300 |
||
|
|
|
|
|
|
|
||
|
Dr. |
Naresh’s Loan A/c |
Cr. |
|||
|
Particulars |
(₹) |
Particulars |
(₹) |
||
|
To Naresh’s Capital A/c |
43,635 |
By
balance b/d |
44,000 |
||
|
To
Cash/Bank A/c |
365 |
|
|
||
|
|
|
|
|
||
|
|
44,000 |
|
44,000 |
||
|
|
|
|
|
||
|
Dr. |
Cash/ Bank A/c |
Cr. |
|||
|
Particulars |
(₹) |
Particulars |
(₹) |
||
|
To
balance b/d |
6,000 |
By Yogesh’s Capital A/c |
14,365 |
||
|
To Realisation A/c (Asset Realised) |
86,730 |
By Naresh’s Loan A/c |
365 |
||
|
|
|
By Realisation A/c (Liabilities Paid) |
78,000 |
||
|
|
|
|
|
||
|
|
92,730 |
|
92,730 |
||
|
|
|
|
|
||
Question 35:
Ashok, Babu and Chetan are in partnership sharing profit in the proportion
of 1/2, 1/3, 1/6 respectively. They dissolve the partnership of the 31st March,
2025 when the Balance Sheet of the firm as under:
|
|
|
|
|||||
|
Liabilities |
(₹) |
Assets |
(₹) |
||||
|
SundryCreditors |
20,000 |
Bank |
7,500 |
||||
|
Bills
Payable |
25,500 |
Sundry
Debtor |
58,000 |
||||
|
Babu's Loan |
30,000 |
Stock |
|
39,500 |
|||
|
Capital
A/cs: |
|
Machinery |
48,000 |
||||
|
Ashok |
70,000 |
|
Investments |
|
42,000 |
||
|
Babu |
55,000 |
|
Freehold
Property |
|
50,500 |
||
|
Chetan |
27,000 |
1,52,000 |
|
|
|
||
|
Current
A/cs: |
|
|
|
|
|
||
|
Ashok |
10,000 |
|
|
|
|
||
|
Babu |
5,000 |
|
|
|
|
||
|
Chetan |
3,000 |
18,000 |
|
|
|
||
|
|
|
|
|
|
|||
|
|
|
|
|
|
|||
|
|
2,45,500 |
|
2,45,500 |
||||
|
|
|
|
|
||||
The
Machinery was taken over by Babu for ₹
45,000, Ashok took over the Investments for ₹ 40,000 and Freehold
property took over by Chetan at ₹ 55,000.
The remaining Assets realised as follows:
Sundry Debtor ₹ 56,500 and Stock ₹ 36,500. Sundry Creditors were
settled at discount of 7%. A Office computer, not
shown in the books of accounts realised ₹
9,000. Realisation expenses amounted to ₹
3,000.
Prepare Realisation Account, Partners' Capital
Accounts and Bank Account.
Answer:
|
Realisation
Account |
|||||||||
|
Dr. |
|
Cr. |
|
||||||
|
Particulars |
(₹) |
Particulars |
(₹) |
||||||
|
Sundry
Debtor |
58,000 |
Sundry
Creditors |
20,000 |
||||||
|
Stock |
39,500 |
Bills
Payable |
25,500 |
||||||
|
Machinery |
48,000 |
Ashok’s Current A/c (Investment) |
40,000 |
||||||
|
Investment |
42,000 |
Babu’s Current A/c (Machinery) |
45,000 |
||||||
|
Freehold
property |
50,500 |
Chetan’s Current A/c |
55,000 |
||||||
|
Bank: |
|
(Freehold
property) |
|
||||||
|
Sundry
Creditors |
18,600 |
|
Bank: |
|
|||||
|
Bills
Payable |
25,500 |
|
Sundry Debtor |
56,500 |
|
||||
|
Expenses |
3,000 |
47,100 |
Stock |
36,500 |
|
||||
|
Realisation Profit |
|
Unrecorded Computer |
9,000 |
1,02,000 |
|||||
|
Ashok’s Current A/c |
1,200 |
|
|
|
|
||||
|
Babu’s Current A/c |
800 |
|
|
|
|
||||
|
Chetan’s Current A/c |
400 |
2,400 |
|
|
|
||||
|
|
|
|
|
|
|||||
|
|
|
2,87,500 |
|
2,87,500 |
|||||
|
|
|
|
|
|
|||||
|
Partners'
Current Account |
|
|||||||||
|
Dr. |
|
Cr. |
|
|||||||
|
Particulars |
Ashok |
Babu |
Chetan |
Particulars |
Ashok |
Babu |
Chetan |
|||
|
Realisation |
40,000 |
45,000 |
55,000 |
Balance
b/d |
10,000 |
5,000 |
3,000 |
|||
|
(Assets
taken) |
|
|
|
Realisation (Profit) |
1,200 |
800 |
400 |
|||
|
|
|
|
|
Ashok's Capital A/c |
28,800 |
|
|
|||
|
|
|
|
|
Babu's Capital A/c |
|
39200 |
|
|||
|
|
|
|
|
Chetan's Capital A/c |
|
|
51600 |
|||
|
|
40,000 |
45,000 |
55,000 |
|
40,000 |
45,000 |
55,000 |
|||
|
|
|
|
|
|
|
|
|
|||
|
Partners'
Capital Account |
|||||||||
|
Dr. |
|
Cr. |
|||||||
|
Particulars |
Ashok |
Babu |
Chetan |
Particulars |
Ashok |
Babu |
Chetan |
||
|
Ashok's Current A/c |
28,800 |
|
|
Balance
b/d |
70,000 |
55,000 |
27,000 |
||
|
Babu's Current A/c |
|
39200 |
|
Bank A/c |
|
|
24,600 |
||
|
Chetan's Current A/c |
|
|
51600 |
|
|
|
|
||
|
Bank A/c |
41,200 |
15,800 |
|
|
|
|
|
||
|
|
|
|
|
|
|
|
|
||
|
|
70,000 |
55,000 |
51,600 |
|
70,000 |
55,000 |
51,600 |
||
|
|
|
|
|
|
|
|
|
||
|
Babu’s
Loan A/c |
|||||
|
Dr. |
|
Cr. |
|||
|
Particulars |
(₹) |
Particulars |
(₹) |
||
|
Bank A/c |
30,000 |
Balance
b/d |
30,000 |
||
|
|
|
|
|
||
|
|
30,000 |
|
30,000 |
||
|
|
|
|
|
||
|
Bank
Account |
|
||||
|
Dr. |
|
Cr. |
|||
|
Particulars |
(₹) |
Particulars |
(₹) |
||
|
Balance
b/d |
7,500 |
Realisation A/c (Payment of Expenses& Liabilities) |
47,100 |
||
|
Realisation A/c (Assets realised) |
102,000 |
and
Liabilities) |
|
||
|
Chetan’s Capital A/c |
24,600 |
Babu’s Loan |
30,000 |
||
|
|
|
Ashok’s Capital A/c |
41,200 |
||
|
|
|
Babu’s Capital A/c |
15,800 |
||
|
|
|
|
|
||
|
|
1,34,100 |
|
1,34,100 |
||
|
|
|
|
|
||
Question 36:
Rita and Sobha are partners
in a firm, Fancy Garments Exports, sharing profits and losses equally. On 1st
April, 2025, the Balance Sheet of the firm was:
|
|
|
|
|||||
|
Liabilities |
(₹) |
Assets |
(₹) |
||||
|
SundryCreditors |
75,000 |
Cash |
6,000 |
||||
|
Bills
Payable |
30,000 |
Bank |
30,000 |
||||
|
Rita's
Loan |
25,000 |
Stock |
75,000 |
||||
|
Reserve
|
24,000 |
Book
Debts |
66,000 |
|
|||
|
Capital
A/cs: |
|
Less: Provision for Doubtful Debts |
6,000 |
60,000 |
|||
|
Rita |
90,000 |
|
|
|
|
||
|
Sobha |
30,000 |
1,20,000 |
Plant
and Machinery |
|
45,000 |
||
|
|
|
Land and
Building |
48,000 |
||||
|
|
|
Loan to Shobha |
|
10,000 |
|||
|
|
2,74,000 |
|
2,64,000 |
||||
|
|
|
|
|
||||
The firm was dissolved on the date given above. The following transactions took
place:
(a) Rita took 25% of the Stock at a discount of 20% in settlement of her loan.
(b) Book Debts realised ₹ 54,000; balance
of the Stock was sold at a profit of 30% on cost.
(c) Sundry Creditors
were paid out at a discount of 10%. Bills Payable were paid in full .
(d) Land and Building ₹ 1,20,000.
(e) Rita took the goodwill of the firm at a value of ₹ 30,000.
(f) An unrecorded asset of ₹ 6,900 was handed over to an unrecorded
liability of ₹ 6,000 in full settlement.
(g) Realisation expenses were ₹ 5,250
Show Realisation Account, Partners' Capital Accounts
and Bank Account in the books of the firm.
Answer:
|
Realisation Account |
||||||
|
Dr. |
|
Cr. |
||||
|
Particulars |
(₹) |
Particulars |
(₹) |
|||
|
To Stock |
75,000 |
By Provision for Doubtful Debts |
6,000 |
|||
|
To Book Debts |
66,000 |
By Sundry Creditors |
75,000 |
|||
|
To Plant and Machinery |
45,000 |
By Bills Payable |
30,000 |
|||
|
To Land and building |
48,000 |
|
|
|||
|
|
|
By Rita’s Capital A/c |
30,000 |
|||
|
|
|
(Goodwill taken over) |
|
|||
|
To Bank A/c: |
|
By Rita’s Capital A/c |
15,000 |
|||
|
|
|
(Stock taken over) |
|
|||
|
Sundry Creditors |
67,500 |
|
By Rita’s Capital A/c |
10,000 |
||
|
|
|
|
(Gain) |
|
||
|
Bills Payable |
30,000 |
|
By Bank A/c: |
|
||
|
Expenses |
5,250 |
1,02,750 |
Stock |
56,250 |
|
|
|
|
|
|
Book Debts |
54,000 |
|
|
|
To Profit transferred to: |
|
Plant and Machinery |
45,000 |
|
||
|
Rita’s Capital A/c |
52,250 |
|
Land and Building |
1,20,000 |
2,45,250 |
|
|
Sobha’s Capital A/c |
52,250 |
1,04,500 |
|
|
|
|
|
|
4,41,250 |
|
4,41,250 |
|||
|
Partners Capital Accounts |
||||||||||||||
|
Dr. |
|
Cr. |
||||||||||||
|
Particulars |
Rita (₹) |
Sobha (₹) |
Particulars |
Rita (₹) |
Sobha (₹) |
|||||||||
|
Realisation A/c (Assets) |
30,000 |
– |
Balance b/d |
90,000 |
30,000 |
|||||||||
|
|
|
|
Reserve Fund |
12,000 |
12,000 |
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|
Bank A/c |
1,24,250 |
94,250 |
Realisation A/c (Profit) |
52,250 |
52,250 |
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|
1,54,250 |
94,250 |
|
1,54,250 |
94,250 |
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Bank Account |
|
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Dr. |
|
Cr. |
|
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Particulars |
(₹) |
Particulars |
(₹) |
|
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|
To Balance b/d |
30,000 |
By Realisation A/c |
|
|
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To Cash A/c |
6,000 |
Creditors - 67,500 |
|
|
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To Realisation A/c |
|
Bills Payable - 30,000 |
|
|
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|
Stock |
56,250 |
Expenses – 5,250 |
1,02,750 |
|
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|
Book Debts |
54,000 |
By Rita’s Capital A/c |
1,24,250, |
|
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|
Plant and Machinery |
45,000 |
By Sobha’s Capital A/c |
94,250 |
|
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Land and Building |
1,20,000 |
|
|
|
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To
Loan to Sobha |
10,000 |
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|
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|
3,21,250 |
|
3,21,250 |
|
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Rita’s Loan A/c |
|||
|
Dr. |
Cr. |
||
|
Particulars |
(₹) |
Particulars |
(₹) |
|
To Realisation A/c |
15,000 |
Balance b/d |
25,000 |
|
(25% Stock taken over) |
|
|
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|
To
Realisation A/c |
10,000 |
|
|
|
(Gain) |
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|
25,000 |
|
25,000 |
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|
Loan to Sobha A/c |
|||
|
Dr. |
Cr. |
||
|
Particulars |
(₹) |
Particulars |
(₹) |
|
To Balance b/d |
10,000 |
By Bank A/c |
10,000 |
|
|
|
|
|
|
|
10,000 |
|
10,000 |
|
|
|
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|
Working Notes:
Value of Stock Taken Over by Rita
Stock taken over by Rita=Book Value of Stock×25/100×80/100
[Since stock is taken over at a discount of 20%]
Stock taken over by Rita=75,000×25/100×80/100
=15,000
Ts Grewal Solution 2025-2026
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Class 12 / Volume – I