Dissolution 24-25 - commercemine

Question 37:

Rita and Sobha are partners in a firm, Fancy Garments Exports, sharing profits and losses equally. On 1st April, 2024, the Balance Sheet of the firm was:


Liabilities		(`)	Assets		(`)
Sundry Creditors		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

Bank A/c

1,24,250

94,250

Realisation A/c (Profit)

52,250

1,54,250

94,250

1,54,250

94,250

Bank Account

Dr.

Cr.

Particulars

(`)

Particulars

(`)

To Balance b/d

30,000

By Realisation A/c

To Cash A/c

6,000

Creditors - 67,500

To Realisation A/c

Bills Payable - 30,000

Stock

56,250

Expenses – 5,250

1,02,750

Book Debts

54,000

By Rita’s Capital A/c

1,24,250,

Plant and Machinery

45,000

By Sobha’s Capital A/c

94,250

Land and Building

1,20,000

To Loan to Sobha

10,000

3,21,250

Rita’s Loan A/c
Dr.		Cr.
Particulars	(`)	Particulars	(`)
To Realisation A/c	15,000	Balance b/d	25,000
(25% Stock taken over)
To Realisation A/c	10,000
(Gain)
	25,000		25,000

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

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

Question 38: 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, 2024, 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, 2024
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
		By Bank A/c
To Bank A/c		Investment - 2,00,000
(Creditors)	54,000	Building -3,55,000
To Bank A/c (Commission on auction)	5,000	Stock – 60,000	6,15,000
Arnab’s Capital A/c (Arnab's Brother's taken over)	95,000	By Ragini’s Capital A/c (stock taken)	60,000
To Dhrupad’s Capital A/c	3,000	By Loss transferred to capital A/cs;
		Arnab - 76,200
		Ragini – 25,400
		Dhrupad – 25,400	1,27,000

	10,27,000		10,27,000

			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 (Loss)	76200	25400		25400	By Realisation A/c	95,000	-	-
To Realisation A/c	-	60000		-	(Arnab's Brother's Loan)
(Stock taken)					By Realisation A/c	-	-	3,000
To Bank A/c	2,63,800	1,04,600		1,37,600	(Expenses)
	3,70,000	2,00,000		1,73,000		3,70,000	2,00,000	1,73,000

Question 39:

Srijan, Raman and Manan were partners in a firm sharing profits and losses in the ratio of 2 : 2 : 1. On 31st, March, 2017 their Balance Sheet was as follows:

BALANCE SHEET OF SRIJAN, RAMAN AND MANAN as on 31st March, 2017
Liabilities		(`)	Assets	(`)
Capitals:			Capital: Manan	10,000
Srijan	2,00,000		Plant	2,20,000
Raman	1,50,000	3,50,000	Investments	70,000
Creditors		75,000	Stock	50,000
Bills Payable		40,000	Debtor	60,000
Outstanding Salary		35,000	Bank	10,000
			Profit and Loss Account	80,000
		5,00,000		5,00,000

On the above date they decided to dissolve the firm.
(a) Srijan was appointed to realise the assets and discharge the liabilities. Srijan was to receive 5% commission on sale of assets (except cash) and was to bear all expenses of realisation.
(b)

Assets were realised as follows:	`
Plant	85,000
Stock	33,000
Debtor	47,000

(c) Investments were realised at 95% of the book value.
(d) The firm had to pay ` 7,500 for an outstanding repair bill not provided for earlier.
(e) A contingent liability in respect of bills receivable, discounted with the bank had also materialised and had to be discharged for `15,000.
(f) Expenses of realisation amounting to ` 3,000 were paid by Srijan.
Prepare Realisation Account, Partners' Capital Accounts and Bank Account.

Answer:

Dr.	Realisation A/c						Cr.
Particulars			(`)	Particulars		(`)
To Plant			2,20,000	By Creditors		75,000
To Investments			70,000	By Bills Payable		40,000
To Stock			50,000	By Outstanding Salary		35,000
To Debtor			60,000

To Srijan’s Capital A/c (Commission)			11,575	By Bank A/c:
To Bank A/c:				Investments	66,500
Outstanding Bill Repair		7,500		Plant	85,000
Contingent liability against bills payable		15,000		Stock	33,000
Creditors		75,000		Debtor	47,000	2,31,500
Bills Payable		40,000
Outstanding Salary		35,000	1,72,500	By Loss on Realisation transferred to:
				Srijan’s Capital A/c	81,030
				Raman’s Capital A/c	81,030
				Manan’s Capital A/c	40,515	2,02,575

			5,84,075			5,84,075

Dr.	Partner’s Capital A/c								Cr.
Particulars		Srijan (`)	Raman (`)	Manan (`)	Particulars	Srijan (`)	Raman (`)	Manan (`)
To balance b/d				10,000	By balance b/d	2,00,000	1,50,000
To Realisation A/c (Loss)		81,030	81,030	40,515	By Realisation A/c (Commission)	11,575
To Profit & Loss A/c		32,000	32,000	16,000
To Bank A/c (Final Payment)		98,545	36,970	–	By Bank A/c			66,515

		2,11,575	1,50,000	66,515		2,11,575	1,50,000	66,515

Dr.	Bank A/c			Cr.
Particulars		(`)	Particulars		(`)
To balance b/d		10,000	By Srijan’s Capital A/c		98,545
To Realisation A/c (Asset Realised)		2,31,500	By Raman’s Capital A/c		36,970
To Manan’s Capital A/c		66,515	By Realisation A/c (Liabilities Paid)		1,72,500

		3,08,015			3,08,015

Question 40: Raina and Meena were partners in a firm which they dissolved on 31st March, 2024.

On this date, Balance Sheet of the firm, apart from realisable assets and outside liabilities showed the following

Raina's Capital	40,000 (Cr)
Meena's Capital	20,000 (Dr.)
Profit & Loss Account	10,000 (Dr.)
Raina's Loan to the Firm	15,000
General Reserve	7,000

On the date of dissolution of the firm:

(a) Raina's loan was repaid by the firm along with interest of `500.

(b) Dissolution expenses of `1,000 were paid by the firm on behalf of Raina.

(d) Dissolution resulted in a loss of ` 60,000 from the realisation of assets and settlement of liabilities.

You are required to prepare Partners Capital Accounts.

Answer:

Capital A/c
Particulars	Raina	Meena	Particulars	Raina	Meena
To Balance B/d	-	20,000	By Balance B/d	40,000	-
To P&L A/c	5,000	5,000	By G.R. A/c	3,500	3,500
To Realisation A/c (Loss)	1,000	-	By Realisation A/c	3,000	-
To Realisation A/c	-	2,000	(Liabilities taken)
(Liabilities Taken)			By Bank A/c	-	53,500
To Realisation A/c	30,000	30,000
(Loss)
To Bank A/c	10,500	-
	46,500	57,000		46,500	57,000

Ts Grewal Solution 2024-2025

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Class 12 / Volume – I

12th | Dissolution of a Partnership Firm | Question No. 37 To 40 | Ts Grewal Solution 2024-2025

Question 37:

Answer:

Question 39:

Answer:

Chapter 7 – Dissolution of a partnership firm

Question No. 1 To 4

Question No. 5 To 8

Question No. 9 To 12

Question No. 13 To 16

Question No. 17 To 20

Question No. 21 To 24

Question No. 25 To 28

Question No. 29 To 32

Question No. 33 To 36

Question No. 37 To 40

Question No. 41 To 44

Question No. 45 To 48