Question 26:
Mike and Ajay are partners sharing profits and losses in ratio of the capitals. They decided to dissolve their firm on 31st March, 2026, 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, 2026, 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 27:
Arnab, Ragini and Dhrupad are partners sharing profits in the ratio of 3:1:1. Last year, conflicts arose due to certain issues of disagreements and on 31st March, 2026, they decided to dissolve the firm. On that date their Balance Sheet was as under:
|
BALANCE SHEET OF ARNAB, RAGINI AND DHRUPAD as at 3 1st March, 2026 |
|||
|
Liabilities |
₹ |
Assets |
₹ |
|
Creditors |
60,000 |
Bank |
50,000 |
|
Arnab's Brother's Loan |
95,000 |
Debtors 1,70,000 |
|
|
Dhrupad's Loan |
1,00,000 |
Prov.D.D.(20,000) |
1,50,000 |
|
Investment Fluctuation Reserve |
50,000 |
Stock |
1,50,000 |
|
Capital A/cs: |
|
Investments |
2,50,000 |
|
Arnab - 2,75,000 |
|
Building |
3,00,000 |
|
Ragini - 2,00,000 |
|
Profit & Loss A/c |
50,000 |
|
Dhrupad - 1,70,000 |
6,45,000 |
|
|
|
|
|
|
|
|
|
9,50,000 |
|
9,50,000 |
The assets were realised and the liabilities were paid as under:
(i) Arnab agreed to pay his brother's loan.
(ii) Investments realised 20% less.
(iii) Creditors were paid at 10% less.
(iv) Building was auctioned for ₹3,55,000. Commission on auction was 5,000.
(v) 50% of the stock was taken over by Ragini at market price which was 20% less than the book value and the remaining was sold at market price.
(vi) Dissolution expenses were 8,000. 3,000 were to be borne by the firm and the balance by Dhrupad.
The expenses were paid by him.
Prepare Realisation Account and Partners' Capital Accounts.
Answer:
|
Realisation A/c |
|||
|
Particulars |
₹ |
Particulars |
₹ |
|
Debtors |
1,70,000 |
Creditors |
60,000 |
|
Stock |
1,50,000 |
Arnab's Brother's Loan |
95,000 |
|
Investments |
2,50,000 |
Investment Fluctuation Reserve |
50,000 |
|
Building |
3,00,000 |
Prov. D.D. |
20,000 |
|
To Bank A/c (Creditors paid) |
54,000 |
By Bank A/c |
|
|
To Bank A/c (Commission on auction) |
5,000 |
Investment - 2,00,000 |
|
|
Arnab’s Capital A/c (Arnab's Brother's taken over) |
95,000 |
Building -3,55,000 |
|
|
To Dhrupad’s Capital A/c |
3,000 |
Debtors- 1,70,000 |
|
|
To Gain transferred to capital A/cs; |
|
Stock – 60,000 |
7,85,000 |
|
Arnab – 25,800 |
|
By Ragini’s Capital A/c (stock taken) |
60,000 |
|
Ragini – 8,600 |
|
|
|
|
Dhrupad – 8,600 |
43,000 |
|
|
|
|
10,70,000 |
|
10,70,000 |
|
Capital A/c |
|||||||
|
Particulars |
Arnab |
Ragini |
Dhrupad |
Particulars |
Arnab |
Ragini |
Dhrupad |
|
To P&L A/c |
30,000 |
10,000 |
10,000 |
By Balance B/d |
2,75,000 |
2,00,000 |
1,70,000 |
|
To Realisation A/c |
- |
60000 |
- |
By Realisation A/c |
95,000 |
- |
- |
|
(Stock taken) |
|
|
|
By Realisation A/c (Gain) |
25,800 |
8,600 |
8,600 |
|
To Bank A/c |
3,65,800 |
1,38,600 |
1,71,600 |
(Arnab's Brother's Loan) |
|
|
|
|
|
|
|
|
By Realisation A/c |
- |
- |
3,000 |
|
|
|
|
|
(Expenses) |
|
|
|
|
|
3,70,000 |
2,00,000 |
1,73,000 |
|
3,70,000 |
2,00,000 |
1,73,000 |
Question 28:
Bale and Yale are equal partners of a firm. They decide to dissolve their partnership on 31st March, 2026 at which date their Balance Sheet stood as:
|
|
||||
|
Liabilities |
₹ |
Assets |
₹ |
|
|
Capital A/cs: |
|
Building |
45,000 |
|
|
Bale |
50,000 |
|
Machinery |
15,000 |
|
Yale |
40,000 |
90,000 |
Furniture |
12,000 |
|
General Reserve |
|
8,000 |
Debtor |
8,000 |
|
Bale's Loan A/c |
|
3,000 |
Stock |
24,000 |
|
Creditors |
|
14,000 |
Bank |
11,000 |
|
|
|
|
|
|
|
|
|
1,15,000 |
|
1,15,000 |
|
|
|
|
|
|
(a)
The assets realised were:
Stock ₹ 22,000; Debtor ₹ 7,500; Machinery ₹
16,000; Building ₹ 35,000.
(b) Yale took over the Furniture at ₹ 9,000.
(c) Bale agreed to accept ₹ 2,500 in full settlement of his Loan
Account.
(d) Dissolution Expenses amounted to ₹ 2,500.
Prepare the:
(i) Realisation Account; (ii) Capital Accounts of Partners;
(iii) Bale's Loan Account; (iv) Bank Account.
Answer:
|
Realisation Account |
|||||||||||||
|
Dr. |
|
Cr. |
|||||||||||
|
Particulars |
(₹) |
Particulars |
(₹) |
||||||||||
|
Building |
45,000 |
Creditors |
14,000 |
||||||||||
|
Machinery |
15,000 |
Bank A/c: |
|
||||||||||
|
Furniture |
12,000 |
Stock |
22,000 |
|
|||||||||
|
Debtor |
8,000 |
Debtor |
7,500 |
|
|||||||||
|
Stock |
24,000 |
Machinery |
16,000 |
|
|||||||||
|
|
|
Building |
35,000 |
80,500 |
|||||||||
|
Bank A/c: |
|
|
|
||||||||||
|
Creditors |
14,000 |
|
Bale’s Loan |
500 |
|||||||||
|
Expenses |
2,500 |
16,500 |
Yale’s Capital A/c (Furniture) |
9,000 |
|||||||||
|
|
|
Loss transferred to: |
|
||||||||||
|
|
|
Bale’s Capital A/c |
8,250 |
|
|||||||||
|
|
|
Yale’s Capital A/c |
8,250 |
16,500 |
|||||||||
|
|
1,20,500 |
|
1,20,500 |
||||||||||
|
|
|
|
|
||||||||||
|
|
|
||||||||||||
|
Dr. |
|
Cr. |
|
||||||||||
|
Particulars |
Bale |
Yale |
Particulars |
Bale |
Yale |
|
|||||||
|
Realisation A/c (Loss) |
8,250 |
8,250 |
Balance b/d |
50,000 |
40,000 |
|
|||||||
|
Realisation A/c |
– |
9,000 |
General
Reserve |
4,000 |
4,000 |
|
|||||||
|
Bank A/c |
45,750 |
26,750 |
|
|
|
|
|||||||
|
|
|
|
|
|
|
|
|||||||
|
|
54,000 |
44,000 |
|
54,000 |
44,000 |
|
|||||||
|
|
|
|
|
|
|
|
|||||||
|
Bale’s Loan Account |
|||||
|
Dr. |
|
Cr. |
|||
|
Particulars |
(₹) |
Particulars |
(₹) |
||
|
Bank A/c |
2,500 |
Balance b/d |
3,000 |
||
|
Realisation A/c |
500 |
|
|
||
|
|
|
|
|
||
|
|
3,000 |
|
3,000 |
||
|
|
|
|
|
||
|
Bank Account |
|||||
|
Dr. |
|
Cr. |
|||
|
Particulars |
(₹) |
Particulars |
(₹) |
||
|
Balance b/d |
11,000 |
Bale’s Loan |
2,500 |
||
|
Realisation A/c |
80,500 |
Realisation A/c |
16,500 |
||
|
|
|
Bale’s Capital A/c |
45,750 |
||
|
|
|
Yale’s Capital A/c |
26,750 |
||
|
|
|
|
|
||
|
|
91,500 |
|
91,500 |
||
|
|
|
|
|
||
Question 29:
A and B are partners in a firm sharing profits and losses in the ratio of 3 : 2. On 31st March, 2026, their Balance Sheet was as follows:
|
BALANCE SHEET as at 31st March, 2026 |
|||||
|
Liabilities |
(₹) |
Assets |
(₹) |
||
|
Creditors |
38,000 |
Cash at Bank |
11,500 |
||
|
Mr. A's Loan |
10,000 |
Stock |
6,000 |
||
|
B's Loan |
15,000 |
Debtor |
19,000 |
||
|
Reserve |
5,000 |
Furniture |
4,000 |
||
|
A's Capital |
10,000 |
|
Plant |
28,000 |
|
|
B's Capital |
8,000 |
18,000 |
Investments |
10,000 |
|
|
|
|
|
Profit and Loss A/C |
7,500 |
|
|
|
|
|
|
|
|
|
|
|
86,000 |
|
86,000 |
|
|
|
|
|
|
|
|
The firm was dissolved on 31st March, 2026 and both the partners agreed to the
following:
(a) A
took Investments at an agreed value of ₹ 8,000. He also agreed to
settle Mrs. A's Loan.
(b) Other assets realised as: Stock − ₹ 5,000; Debtor −
₹ 18,500; Furniture − ₹ 4,500; Plant −
₹ 25,000.
(c) Expenses of realisation came to ₹ 1,600.
(d) Creditors agreed to accept ₹ 37,000 in full settlement of their
claims.
Prepare Realisation Account, Partners' Capital Accounts and Bank Account.
Answer:
|
Realisation Account |
||||||||||||
|
Dr. |
|
Cr. |
||||||||||
|
Particulars |
(₹) |
Particulars |
(₹) |
|||||||||
|
Stock |
6,000 |
Creditors |
38,000 |
|||||||||
|
Debtor |
19,000 |
M₹. A’s Loan |
10,000 |
|||||||||
|
Furniture |
4,000 |
|
|
|||||||||
|
Plant |
28,000 |
A’s Capital A/c (Investments) |
8,000 |
|||||||||
|
Investments |
10,000 |
Bank A/c: |
|
|||||||||
|
A’s Capital A/c (M₹. A’s loan) |
10,000 |
Stock |
5,000 |
|
||||||||
|
Bank A/c : |
|
Debtor |
18,500 |
|
||||||||
|
Expenses |
1,600 |
|
Furniture |
4,500 |
|
|||||||
|
Creditors |
37,000 |
38,600 |
Plant |
25,000 |
53,000 |
|||||||
|
|
|
Loss transferred to: |
|
|||||||||
|
|
|
A’s Capital A/c |
3,960 |
|
||||||||
|
|
|
B’s Capital A/c |
2,640 |
6,600 |
||||||||
|
|
1,15,600 |
|
1,15,600 |
|||||||||
|
|
|
|
|
|||||||||
|
Partners Capital Accounts |
|
|||||||||||
|
Dr. |
|
Cr. |
|
|||||||||
|
Particulars |
A |
B |
Particulars |
A |
B |
|
||||||
|
Realisation (loss) |
3,960 |
2,640 |
Balance b/d |
10,000 |
8,000 |
|
||||||
|
Realisation A/c |
8,000 |
– |
Reserve A/c |
3,000 |
2,000 |
|
||||||
|
Profit and Loss A/c |
4,500 |
3,000 |
Realisation A/c |
10,000 |
– |
|
||||||
|
Bank A/c |
6,540 |
4,360 |
|
|
|
|
||||||
|
|
23,000 |
10,000 |
|
23,000 |
10,000 |
|
||||||
|
|
|
|
|
|
|
|
||||||
|
|
|
|
|
|
|
|
|
|
||||
|
B’s Loan Account |
|||||
|
Dr. |
|
Cr. |
|||
|
Particulars |
(₹) |
Particulars |
(₹) |
||
|
|
|
Balance b/d |
15,000 |
||
|
Bank A/c |
15,000 |
|
|
||
|
|
15,000 |
|
15,000 |
||
|
|
|
|
|
||
|
Bank Account |
|||||
|
Dr. |
|
Cr. |
|||
|
Particulars |
(₹) |
Particulars |
(₹) |
||
|
Balance b/d |
11,500 |
Realisation A/c |
38,600 |
||
|
Realisation A/c |
53,000 |
A’s Capital A/c |
6,540 |
||
|
|
|
B’s Capital A/c |
4,360 |
||
|
|
|
B’s Loan A/c |
15,000 |
||
|
|
64,500 |
|
64,500 |
||
|
|
|
|
|
||
Question 30:
A, B and C were equal partners. On 31st March, 2026, their Balance Sheet stood as:
|
Liabilities |
(₹) |
Assets |
(₹) |
|
|
Creditors |
50,400 |
Cash |
3,700 |
|
|
Reserve |
12,000 |
Stock |
20,100 |
|
|
Capital A/cs: |
|
Debtor |
62,600 |
|
|
A |
40,000 |
|
Loan to A |
10,000 |
|
B |
25,000 |
|
Investments |
16,000 |
|
C |
15,000 |
80,000 |
Furniture |
6,500 |
|
|
|
|
Building |
23,500 |
|
|
1,42,400 |
|
1,42,400 |
|
|
|
|
|
|
|
The firm was dissolved on the above date on the following terms:
(a) For the purpose of dissolution, Investments were valued at ₹
18,000 and A took over the Investments at this
value.
(b) Fixed Assets realised ₹ 29,700 whereas Stock and Debtor
realised ₹ 80,000.
(c) Expenses of realisation amounted to ₹ 1,300.
(d) Creditors allowed a discount of ₹ 800.
(e) One Bill receivable for ₹ 1,500 under discount was dishonoured
as the acceptor had become insolvent and was unable to pay anything and hence
the bill had to be met by the firm.
Prepare Realisation Account, Partner's Capital Accounts and Cash Account
showing how the accounts would finally be settled among the partners.
Answer:
|
Realisation Account |
|||||||
|
Dr. |
|
Cr. |
|||||
|
Particulars |
(₹) |
Particulars |
(₹) |
||||
|
Stock |
20,100 |
Creditors |
50,400 |
||||
|
Debtor |
62,600 |
|
|
||||
|
Investments |
16,000 |
A’s Capital A/c (Investments) |
18,000 |
||||
|
Furniture |
6,500 |
Cash A/c: |
|
||||
|
Building |
23,500 |
Furniture and Building |
29,700 |
|
|||
|
Cash A/c: |
|
Stock and Debtor |
80,000 |
1,09,700 |
|||
|
Expenses |
1,300 |
|
|
|
|||
|
Creditors |
49,600 |
|
|
|
|||
|
Bills |
1,500 |
52,400 |
Loss transferred to : |
|
|||
|
|
|
A’s Capital A/c |
1,000 |
|
|||
|
|
|
B’s Capital A/c |
1,000 |
|
|||
|
|
|
C’s Capital A/c |
1,000 |
3,000 |
|||
|
|
|
|
|
||||
|
|
1,81,100 |
|
1,81,100 |
||||
|
|
|
|
|
||||
|
Partners Capital Accounts |
|||||||||
|
Dr. |
|
Cr. |
|||||||
|
Particulars |
A |
B |
C |
Particulars |
A |
B |
C |
||
|
Realisation A/c (Investment) |
18,000 |
– |
– |
Balance b/d |
40,000 |
25,000 |
15,000 |
||
|
Realisation
A/c |
1,000 |
1,000 |
1,000 |
Reserve |
4,000 |
4,000 |
4,000 |
||
|
Cash A/c |
25,000 |
28,000 |
18,000 |
|
|
|
|
||
|
|
44,000 |
29,000 |
19,000 |
|
44,000 |
29,000 |
19,000 |
||
|
|
|
|
|
|
|
|
|
||
|
A’s Loan A/c |
|||||
|
Dr. |
Cr. |
||||
|
Particulars |
(₹) |
Particulars |
(₹) |
||
|
Balance b/d |
10,000 |
Bank A/c |
10,000 |
||
|
|
|
|
|
||
|
|
10,000 |
|
10,000 |
||
|
|
|
|
|
||
|
Cash Account |
|||||
|
Dr. |
|
Cr. |
|||
|
particulars |
(₹) |
Particulars |
(₹) |
||
|
Balance b/d |
3,700 |
Realisation A/c |
52,400 |
||
|
Realisation A/c |
1,09,700 |
A’s Capital A/c |
25,000 |
||
|
A's Loan A/c |
10,000 |
B’s Capital A/c |
28,000 |
||
|
|
|
C’s Capital A/c |
18,000 |
||
|
|
1,23,400 |
|
1,23,400 |
||
|
|
|
|
|
||
Ts Grewal Solution 2026-2027
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Class 12 / Volume – I