Question 13:
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) |
|
|
|
|
|
|
|
|
|
|
|
|
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) |
|
|
|
|
|
|
|
|
|
|
|
|
f. |
Realisation A/c |
Dr. |
|
1,250 |
|
|
|
To Bank A/c |
|
|
|
1,250 |
|
|
(Being Creditors paid) |
|
|
|
|
|
|
|
|
|
|
|
|
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) |
|
|
|
|
|
|
|
|
|
|
|
Question 14:
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) |
|
|
|
|
Question 15:
Suman and Rajan were partners in
a firm sharing profits and losses in the ratio of 3: 1. The firm was dissolved
on 31st March, 2019. Pass the necessary Journal entries for the following
transactions after various assets (other than cash in hand and at bank) and
third party liabilities have been transferred to Realisation
Account:
(a) Dissolution expenses ` 10,000 were paid by the firm.
(b) Rajan
had given a loan of `
60,000 to the firm for which he accepted ` 58,000 in full settlement.
(c) The firm had a debit
balance of `
40,000 in the Profit &Loss Account on
the date of dissolution.
(d) Profit on realisation was ` 12,000. (CBSE 2020)
Answer:
|
Date |
Particulars |
|
` (Dr.) |
` (Cr.) |
|
(a) |
Realisation A/c |
Dr. |
10,000 |
|
|
|
To Cash/Bank A/c |
|
|
10,000 |
|
|
(Dissolution expenses were paid
by the firm) |
|
|
|
|
(b) |
Rajan's Loan A/c |
Dr. |
60,000 |
|
|
|
To Bank/Cash A/c |
|
|
58,000 |
|
|
To Realisation A/c |
|
2,000 |
|
|
|
(Rajan‘s
loan of `
60,000 to the firm for which he
accepted `
58,000 in full settlement) |
|
|
|
|
(c) |
Dr. Suman's
Capital A/c |
Dr. |
30,000 |
|
|
|
Rajan's Capital A/c |
Dr. |
10,000 |
|
|
|
To Profit & Loss A/c |
|
40,000 |
|
|
|
(Accumulated loss
distributed) |
|
|
|
|
(d) |
Realisation A/c
Dr. |
12,000 |
|
|
|
|
To Suman's Capital
A/c |
|
9,000 |
|
|
|
To Rajan's Capital
A/c |
|
3,000 |
|
|
|
(Profit distributed) |
|
|
|
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 at5,200 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:
|
|
Journal |
||||||||||
|
S.N. |
Particulars |
L.F. |
Debits ` |
Credit ` |
|||||||
|
(i) |
Realisation A/c |
Dr. |
|
2,600 |
|
||||||
|
To Aman's Capital A/c |
|
2,600 |
|||||||||
|
|
|
|
|
||||||||
|
(ii) |
No Entry |
|
|
- |
- |
||||||
|
(iii) |
Cash/Bank A/c |
Dr. |
|
3,500 |
|
||||||
|
To Realisation A/c |
|
|
3,500 |
||||||||
|
|
|
|
|
||||||||
|
(iv) |
Realisation A/c |
Dr. |
|
19,000 |
|
||||||
|
To Cash/Bank
A/c |
|
|
19,000 |
||||||||
|
|
|
|
|
||||||||
|
(v) |
Binmal's Capital A/c |
Dr. |
|
24,000 |
|
|
||||||
|
To Realisation A/c |
|
|
24,000 |
|
||||||||
|
|
|
|
|
|
||||||||
|
(vi) |
Cash/Bank A/c |
Dr. |
|
4,000 |
|
|
||||||
|
To Realisation A/c |
|
|
4,000 |
|
||||||||
|
|
|
|
|
|
||||||||
Ts Grewal Solution 2024-2025
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Class 12 / Volume – I