Question 16:

Pass necessary Journal entries for the following transactions on the dissolution of a firm after various assets. (other than cash) and outside liabilities have been transferred to Realisation Account:

(i) Realisation expenses of the firm amounting to ₹2,600 were paid by partner, Aman.

(ii) A creditor of ₹4,500 took over stock valued at ₹5,200 in full settlement.

(iii) An unrecorded asset realised ₹3,500.

(iv) Remaining creditors amounting to ₹20,000 were paid at a discount of 5%.

(v) Remaining stock of ₹30,000 was taken over by Bimal, a partner, at a discount of 20%.

(vi) Investment whose face value was ₹10,000 was realised at 40%.

(CBSE 2023)

Answer:

 

Question 17:

Pass the necessary Journal entries for the following transactions on the dissolution of the partnership firm of Tina and Rina after the various assets (other than cash and bank) and external liabilities have been transferred to Realisation Account:

(i) There was an outstanding bill for repairs for which ₹20,000 were paid.

(ii) The firm had stock of ₹80,000. Tina took over 50% of the stock at a discount of 20% while the remaining stock was sold off for ₹52,000.

(iii) The firm had 100 shares of ₹10 each which were taken over by the partners at market value of ₹20 per share in their profit-sharing ratio of 3: 2.

(iv) Realisation expenses of ₹4,000 were paid by Rina.

(v) Tina had given a loan of ₹40,000 to the firm which was duly paid.

(vi) Rina agreed to pay off her husband's loan of ₹10,000 at a discount of 10%.

(CBSE 2024)

Answer:

 

Question 18:

Pass necessary Journal entries on dissolution of a firm in the following cases:

(a) Dharama, a partner, was appointed to look after the process of dissolution at a remuneration of ₹12,000.

Dissolution expenses were to be borne by the firm. Dissolution expenses ₹11,000 were paid by Dharam.

(b) Jay, a partner, was appointed to look after dissolution and was to be paid ₹15,000, including dissolution expenses. Dissolution expenses ₹16,000 were paid by Vijay, another partner on behalf of Jay.

(c) Deepa, a partner, was to handle dissolution and for this work she was to be paid ₹7,000, including dissolution expenses. Dissolution expenses ₹6,000 were paid from the firm's bank account.

(d) De, a partner, agreed to do the work of dissolution for ₹7,500. He took stock of the same value as his remuneration. The stock had already been transferred to Realisation Account.

(e) Jeev, a partner, agreed to do the work of dissolution for which he was allowed ₹10,000. He agreed to bear the dissolution expenses. Actual dissolution expenses paid by Jeev were ₹12,000.These expenses were paid by Jeev by drawing cash from the firm.

 

Answer:

 

Question 19:

Pass the necessary Journal entries for settlement of loan by partner at the time of dissolution of firm under each of the following cases:

Case 1. Loan from Shiv (a partner) ₹1,00,000 and balance in his Capital Account (Credit) ₹1,75000.

Case 2. Loan from Shiv (a partner) ₹1,00,000 and balance in his Capital Account (Debit) ₹80,000.

Case 3. Loan from Shiv (a partner) ₹1,00,000 and balance in his Capital Account (Debit) ₹1,37,500.

Answer:

 

Realisation Account

Question 20:

Meundra and Neeraj were partners in a firm sharing profits and losses in the ratio of 3:2. The Balance Sheet as at 31st March, 2024 was as under:

The firm was dissolved on the above date and the following transactions took place:

(i) Machinery was taken over by creditors in full settlement of their account.

(ii) Investments were taken over by Neeraj at 5,00,000.

(iii) One of the debtors of 1,00,000 was untraceable. Remaining debtors were realised at 10% less.

(iv) Stock was taken over by Madhur at 50% discount.

(v) Realisation expenses amounting to 1,00,000 were paid by Madhu.

Prepare Realisation Account.

(CBSE 2026)

Answer: