Question 31:
Shilpa, Meena and Nanda decided to dissolve their partnership on 31st March, 2026. Their profit-sharing ratio was 3 : 2 : 1 and their Balance Sheet was as under:
|
BALANCE SHEET OF SHILPA, MEENA AND NANDA as at 31st March, 2026 |
||||
|
Liabilities |
₹ |
Assets |
₹ |
|
|
Capital A/cs: |
|
Land |
81,000 |
|
|
Shilpa |
80,000 |
|
Stock |
56,760 |
|
Meena |
40,000 |
1,20,000 |
Debtor |
18,600 |
|
Bank Loan |
|
20,000 |
Nanda's Capital |
23,000 |
|
Creditors |
|
37,000 |
Cash |
10,840 |
|
Provision For Doubtful Debts |
|
1,200 |
|
|
|
General Reserve |
|
12,000 |
|
|
|
|
|
|
|
|
|
|
|
1,90,200 |
|
1,90,200 |
|
|
|
|
|
|
It
is agreed as follows:
The
stock of value of ₹ 41,660 are taken over by Shilpa for ₹
35,000 and she agreed to discharge bank loan. The remaining stock was sold
at ₹ 14,000 and Debtor amounting to ₹10,000
realised ₹ 8,000. Land is sold for ₹ 1,10,000. The
remaining Debtor realised 50% at their book value. Cost of realisation amounted
to ₹1,200. There was a typewriter not recorded in the books worth
of ₹ 6,000 which were taken over by one of the Creditors at this
value. Prepare Realisation Account, Partners' Capital Accounts, and Cash
Account to Close the books of the firm.
Answer:
|
Realisation Account |
|
||||||||
|
Dr. |
|
Cr. |
|
||||||
|
Particulars |
(₹) |
Particulars |
(₹) |
||||||
|
Land |
81,000 |
Bank Loan |
20,000 |
||||||
|
Stock |
56,760 |
Creditors |
37000 |
||||||
|
Debtor |
18,600 |
Provision for doubtful debts |
1,200 |
||||||
|
Shilpa’s Capital A/c |
20,000 |
Shilpa’s Capital A/c (Stock) |
35,000 |
||||||
|
Cash: |
|
Cash: |
|
||||||
|
Creditors |
31000 |
|
Stock |
14000 |
|
||||
|
Realisation Expenses |
1,200 |
32200 |
Debtor |
12300 |
|||||
|
Realisation Profit |
|
Land |
1,10,000 |
1,36,300 |
|||||
|
Shilpa’s Capital A/c |
10,470 |
|
|
|
|
|
|||
|
Meena’s Capital A/c |
6,980 |
|
|
|
|||||
|
Nanda’s Capital A/c |
3,490 |
20,940 |
|
|
|||||
|
|
2,29,500 |
|
2,29,500 |
||||||
|
|
|
|
|
||||||
|
Partners Capital Account |
|
||||||||
|
Dr. |
|
Cr. |
|
||||||
|
Particulars |
Shilpa |
Meena |
Nanda |
Particulars |
Shilpa |
Meena |
Nanda |
||
|
Balance b/d |
– |
– |
23,000 |
Balance b/d |
80,000 |
40,000 |
– |
||
|
Realisation |
35,000 |
|
|
General Reserve |
6,000 |
4,000 |
2,000 |
||
|
(Stock) |
|
|
|
Realisation |
20,000 |
|
|
||
|
Cash |
81,470 |
50,980 |
|
(Bank Loan) |
|
|
|
||
|
|
|
|
|
Realisation (Profit) |
10,470 |
6,980 |
3,490 |
||
|
|
|
|
|
Cash |
|
|
17,510 |
||
|
|
1,16,470 |
50,980 |
23,000 |
|
1,16,470 |
50,980 |
23,000 |
||
|
|
|
|
|
|
|
|
|
||
|
Cash Account |
|
|||||
|
Dr. |
|
Cr. |
|
|||
|
Particulars |
(₹) |
Particulars |
(₹) |
|||
|
Balance b/d |
10,840 |
Realisation (Expenses) |
32,200 |
|||
|
Realisation (Assets) |
1,36,300 |
Shilpa’s Capital A/c |
81,470 |
|||
|
Nanda’s Capital A/c |
17,510 |
Meena’s Capital A/c |
50,980 |
|||
|
|
|
|
|
|||
|
|
1,64,650 |
|
1,64,650 |
|||
|
|
|
|
|
|||
Question 32:
Michael, Jackson and John are in partnership sharing profits and losses in the proportions of 1/2, 1/3 and 1/6 respectively. On 31st March, 2026, they decided to dissolve the partnership and the position of the firm on this date is represented by the following Balance Sheet:
|
Liabilities |
Amount |
Assets |
Amount |
||
|
Creditors |
40,000 |
Cash at Bank |
3,000 |
||
|
Loan A/c: |
|
Stock |
50,000 |
||
|
Michael |
10,000 |
Sundry Debtor |
50,000 |
||
|
Workmen Compensation Reserve |
21,000 |
Land and Building |
57,000 |
||
|
Capital A/cs: |
|
Profit and Loss A/c |
15,000 |
||
|
Michael |
60,000 |
|
Advertisement Suspense A/c |
6,000 |
|
|
Jackson |
40,000 |
|
|
|
|
|
John |
10,000 |
1,10,000 |
|
|
|
|
|
1,81,000 |
|
1,81,000 |
||
|
|
|
|
|
||
During
the realisation, a liability under a suit for damages is settled
at ₹ 20,000 as against ₹ 5,000 only provided for in the
books of the firm.
Land and Building were sold for ₹ 40,000 and the Stock and Sundry
Debtorrealised ₹ 30,000 and ₹ 42,000 respectively. The
expenses of realisation amounted to ₹ 1,200.
There was a car in the firm, which was completely written off from the books.
It was taken by Michael for ₹ 20,000. He also agreed to pay
Outstanding Salary of ₹ 20,000 not provided in books.
Prepare Realisation Account, Partners' Capital Accounts and Bank Account in the
books of the firm.
Answer:
|
Realisation Account |
|||||||
|
Dr. |
|
Cr. |
|||||
|
Particulars |
(₹) |
Particulars |
(₹) |
||||
|
Land and Building |
57,000 |
Creditors |
40,000 |
||||
|
Stock |
50,000 |
Bank |
|
||||
|
Sundry Debtor |
50,000 |
Land and building |
40,000 |
|
|||
|
|
|
Stock |
30,000 |
|
|||
|
Bank A/c: |
|
Sundry Debtor |
42,000 |
1,12,000 |
|||
|
Creditors (40,000 |
55,000 |
|
|
|
|||
|
Expenses |
1,200 |
56,200 |
Loss transferred to: |
|
|||
|
|
|
Michael’s Capital A/c |
30,600 |
|
|||
|
|
|
Jackson’s Capital A/c |
20,400 |
|
|||
|
|
|
John’s Capital A/c |
10,200 |
61,200 |
|||
|
|
2,13,200 |
|
2,13,200 |
||||
|
|
|
|
|
||||
|
|
Partners Capital Accounts |
|
|||||||||
|
|
Dr. |
|
Cr. |
|
|||||||
|
Particulars |
Michael |
Jackson |
John |
Particulars |
Michael |
Jackson |
John |
||||
|
Profit
and Loss A/c |
|
|
|
Balance
b/d |
60,000 |
40,000 |
10,000 |
||||
|
Bank A/c |
29,400 |
19,600 |
------- |
|
|
|
|
||||
|
|
|
|
|
|
|
|
|
||||
|
|
70,500 |
47,000 |
13,700 |
|
70,500 |
47,000 |
13,700 |
||||
|
|
|
|
|
|
|
|
|
||||
|
Michael’s Loan Account |
|||||
|
Dr. |
|
Cr. |
|||
|
Particulars |
(₹) |
Particulars |
(₹) |
||
|
Bank A/c |
10,000 |
Balance b/d |
10,000 |
||
|
|
|
|
|
||
|
|
10,000 |
|
10,000 |
||
|
|
|
|
|
||
|
Bank Account |
|||||
|
Dr. |
|
Cr. |
|||
|
Particulars |
(₹) |
Particulars |
(₹) |
||
|
Balance b/d |
3,000 |
Michael’s Loan A/c |
10,000 |
||
|
Realisation A/c |
1,12,000 |
Michael’s Capital A/c |
29,400 |
||
|
John’s Capital A/c |
200 |
Jackson’s Capital A/c |
19,600 |
||
|
|
|
|
|
||
|
|
1,15,200 |
|
1,15,200 |
||
|
|
|
|
|
||
Question 33:
Prashant and Rajesh are partners in a firm sharing profits and losses in the ratio of 2 : 1. On 31st March, 2026, 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 |
(₹) |
Particulars |
(₹) |
||
|
|
|
Balance b/d |
34,000 |
||
|
Bank A/c |
34,000 |
|
|
||
|
|
34,000 |
|
34,000 |
||
|
|
|
|
|
||
|
Bank Account |
||||
|
Dr. |
|
Cr. |
||
|
Particulars |
(₹) |
Particulars |
(₹) |
|
|
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, 2026. 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 |
|
By Naresh’s Capital A/c |
26,000 |
||||
|
Naresh’s Capital A/c |
6,665 |
13,330 |
(Investment taken over) |
|||||
|
|
|
|
|
|||||
|
|
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, 2026 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 |
||
|
|
|
|
|
||
Ts Grewal Solution 2026-2027
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Class 12 / Volume – I