Question 11:
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) |
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|
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||
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||
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(b) |
Cash/Bank A/c |
Dr. |
|
600 |
|
|
|
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To Realisation A/c |
|
|
|
600 |
|
|
|
(Being Bad debts previously written off now recovered) |
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||
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||
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(c) |
Paras’s Capital A/c |
Dr. |
|
30,000 |
|
|
|
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To Realisation A/c |
|
|
|
30,000 |
|
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(Being Unrecorded goodwill taken over by Paras) |
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(d) |
Priya’s Capital A/c |
Dr. |
|
300 |
|
|
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To Realisation A/c |
|
|
|
300 |
|
|
|
(Being Unrecorded Typewriter taken over by Priya at 25% less price) |
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(e) |
Paras’s Capital A/c |
Dr. |
|
300 |
|
|
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|
Priya’s Capital A/c |
Dr. |
|
300 |
|
|
|
|
To Realisation A/c |
|
|
|
600 |
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|
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(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) |
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Question 12:
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) |
|
|
|
||
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(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) |
|
|
|
||
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Alternatively, only one single entry can also be passed instead of above two entries. |
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||
|
Realisation A/c |
Dr. |
|
10,000 |
|
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|
Amrit’s Capital A/c |
Dr. |
|
5,000 |
|
|
|
To Cash A/c |
|
|
15,000 |
||
|
(Realisation expenses paid) |
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|
Realization A/c Dr. |
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To Cash A/c |
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(Paid provident fund) |
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(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) |
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(g) |
Cash A/c |
Dr. |
|
15,000 |
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To Realisation A/c |
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|
15,000 |
||
|
|
(Investments are realised at 150%) |
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(h) |
Realisation A/c |
|
7,500 |
|
|
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To Krishna’s Capital A/c |
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|
7,500 |
|
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(Krishna, a partner, reimbursed for realization expenses) |
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Question 13:
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 |
||||||||
|
(Being stock of book value ₹1,00,000 taken over by partner Kavita at an agreed value of ₹90,000) |
|
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|
||||||||
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(b) |
No Entry |
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|
- |
- |
||||||
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(c) |
Suman's Capital A/c |
|
|
17,000 |
|
||||||
|
To Realisation A/c |
|
|
17,000 |
||||||||
|
(Being an unrecorded asset taken over by partner Suman at an agreed value of ₹17,000) |
|
|
|
||||||||
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(d) |
Realisation A/c |
Dr. |
|
2,000 |
|
||||||
|
To Kavita's Capital A/c |
|
|
2,000 |
||||||||
|
(Being realisation expenses paid by partner Kavita on behalf of the firm) |
|
|
|
||||||||
|
(e) |
Realisation A/c |
Dr. |
|
21,000 |
|
|
||||||
|
To Bank A/c |
|
|
21,000 |
|
||||||||
|
(Being the external liability for Bank Loan settled/paid off) |
|
|
|
|
||||||||
|
(f) |
Kavita's Capital A/c |
Dr. |
|
3,500 |
|
|
||||||
|
Sumarn's Capital A/c |
|
3,500 |
|
|
||||||||
|
To Realisation A/c (Being loss on dissolution transferred to Partners' Capital Accounts in their profit-sharing ratio) |
|
|
7,000 |
|
||||||||
Question 14:
Aman and Harsh were partners in a firm. They decided
to dissolve their firm. Pass necessary Journal entries for the following after
various assets (other than Cash and Bank) and third party liabilities have been
transferred to Realisation Account:
(a) There was furniture worth ₹ 50,000. Aman took over 50% of the
furniture at 10% discount and the remaining furniture was sold at 30% profit on
book value.
(b) Profit and Loss Account was showing a credit balance of ₹ 15,000
on the date of dissolution.
(c) Harsh's loan of ₹ 6,000 was discharged at ₹ 6,200.
(d) The firm paid realisation expenses amounting to ₹ 5,000 on
behalf of Harsh who had to bear these expenses.
(e) There was a bill for 1,200 under discount. The bill was received from Soham
who proved insolvent and a first and final dividend of 25% was received from
his estate.
(f) Creditors to whom the firm owed ₹ 6,000, accepted stock
of ₹ 5,000 at a discount of 5% and the balance in cash.
Answer:
|
Journal |
|||||
|
Date |
Particulars |
L.F. |
Debit (₹) |
Credit (₹) |
|
|
|
|
|
|
|
|
|
a. |
Aman’s Capital A/c |
Dr. |
|
22,500 |
|
|
|
Bank A/c |
Dr. |
|
32,500 |
|
|
|
To Realisation A/c |
|
|
|
55,000 |
|
|
(Being Assets realized) |
|
|
|
|
|
|
|
|
|
|
|
|
b. |
Profit & Loss A/c |
Dr. |
|
15,000 |
|
|
|
To Aman’s Capital A/c |
|
|
|
7,500 |
|
|
To Harsh’s Capital A/c |
|
|
|
7,500 |
|
|
(Being Profit distributed) |
|
|
|
|
|
|
|
|
|
|
|
|
c. |
Harsh’s Loan A/c |
Dr. |
|
6,000 |
|
|
|
Realisation A/c |
Dr. |
|
200 |
|
|
|
To Bank A/c |
|
|
|
6,200 |
|
|
(Being Loan Discharged) |
|
|
|
|
|
|
|
Dr. |
|
5,000 |
|
|
d. |
Harsh’s Capital A/c |
|
|
|
5,000 |
|
|
To Bank A/c |
|
|
|
|
|
|
(Being Expenses paid on behalf of partner) |
|
|
|
|
|
|
|
|
|
|
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|
e. |
Bank A/c |
Dr. |
|
300 |
|
|
|
To Realisation A/c |
|
|
|
300 |
|
|
(Being Amount received) |
|
|
|
|
|
|
|
|
|
|
|
|
|
Realisation A/c |
Dr. |
|
1,200 |
|
|
|
To Bank A/c |
|
|
|
1,200 |
|
|
(Being Amount paid) |
|
|
|
|
|
|
|
|
|
|
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|
f. |
Realisation A/c |
Dr. |
|
1,250 |
|
|
|
To Bank A/c |
|
|
|
1,250 |
|
|
(Being Creditors paid) |
|
|
|
|
|
|
|
|
|
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|
g. |
Aman’s Capital A/c |
Dr. |
|
4,000 |
|
|
|
Harsh’s Capital A/c |
Dr. |
|
4,000 |
|
|
|
To Realisation A/c |
|
|
|
8,000 |
|
|
(Being Loss on dissolution transferred to Partners Capital A/c) |
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Question 15:
Rohit, Kunal and Sarthak are partners in a firm. They
decided to dissolve their firm. Pass necessary Journal entries for the
following after various assets (other than Cash and Bank) and the third party
liability have been transferred to Realisation Account:
(a) Kunal agreed to pay off his wife's loan of ₹ 6,000.
(b) Total Creditors of the firm were ₹ 40,000. Creditors
worth ₹ 10,000 were given a piece of furniture costing ₹
8,000 in full and final settlement. Remaining Creditors allowed a discount of
10%.
(c) Rohit had given a loan of ₹ 70,000 to the firm which was duly
paid.
(d) A machine which was not recorded in the books was taken over by Kunal
at ₹ 3,000, whereas its expected value was ₹ 5,000.
(e) The firm had a debit balance of ₹ 15,000 in the Profit and Loss
Account on the date of dissolution.
(f) Sarthak paid the realisation expenses of ₹ 16,000 out of his
private funds, who was to get a remuneration of ₹ 15,000 for
completing dissolution process and was responsible to bear all the realisation
expenses.
Answer:
|
Journal |
|||||
|
Date |
Particulars |
L.F. |
Debit ₹ |
Credit ₹ |
|
|
(a) |
Realisation A/c |
Dr. |
|
6,000 |
|
|
|
To Kunal’s Capital A/c |
|
|
|
6,000 |
|
|
(Being Kunal agrees to pay off his wife’s loan) |
|
|
|
|
|
(b) |
Realisation A/c |
Dr. |
|
27,000 |
|
|
|
To Cash A/c |
|
|
|
27,000 |
|
|
(Being Creditors worth₹ 30,000
paid |
|
|
|
|
|
(c) |
Rohit’s Loan A/c |
Dr. |
|
70,000 |
|
|
|
To Cash A/c |
|
|
|
70,000 |
|
|
(Being Loan paid by the firm) |
|
|
|
|
|
(d) |
Kunal’s Capital A/c |
Dr. |
|
3,000 |
|
|
|
To Realisation A/c |
|
|
|
3,000 |
|
|
(Being asset taken over by Kunal) |
|
|
|
|
|
(e) |
Rohit’s Capital A/c |
Dr. |
|
5,000 |
|
|
|
Kunal’s Capital A/c |
Dr. |
|
5,000 |
|
|
|
Sarthak’s Capital A/c |
Dr. |
|
5,000 |
|
|
|
To Profit and Loss A/c |
|
|
|
15,000 |
|
|
(Being Loss distributed equally) |
|
|
|
|
|
(f) |
Realisation A/c |
Dr. |
|
15,000 |
|
|
|
To Sarthak’s Capital A/c |
|
|
|
15,000 |
|
|
(Being remuneration of ₹ 15,000 paid for completion of dissolution process) |
|
|
|
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Ts Grewal Solution 2026-2027
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Class 12 / Volume – I