Question 33:
Rita and Sobha are partners in a firm, Fancy Garments Exports, sharing profits and losses equally. On 1st April, 2022, the Balance Sheet of the firm was:
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Liabilities |
(
`) |
Assets |
(
`) |
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Sundry
Creditors |
75,000 |
Cash |
6,000 |
||||
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Bills
Payable |
30,000 |
Bank |
30,000 |
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Rita's
Loan |
15,000 |
Stock |
75,000 |
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Reserve
|
24,000 |
Book
Debts |
66,000 |
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Capital
A/cs: |
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Less:
Provision
for Doubtful Debts |
6,000 |
60,000 |
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Rita |
90,000 |
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Sobha |
30,000 |
1,20,000 |
Plant
and Machinery |
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45,000 |
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Land
and Building |
48,000 |
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2,64,000 |
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2,64,000 |
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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) Plant and Machinery realised ` 75,000. 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:
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Realisation Account |
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Dr. |
|
Cr. |
||||
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Particulars |
( `) |
Particulars |
( `) |
|||
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Stock |
75,000 |
Provision for Doubtful Debts |
6,000 |
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Book Debts |
66,000 |
Sundry Creditors |
75,000 |
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Plant and Machinery |
45,000 |
Bills Payable |
30,000 |
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Land and building |
48,000 |
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Rita’s Capital A/c |
30,000 |
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(Goodwill taken over) |
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Bank A/c: |
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Rita’s Loan A/c (Stock taken over) |
15,000 |
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Sundry Creditors |
67,500 |
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Bills Payable |
30,000 |
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Bank A/c: |
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Expenses |
5,250 |
1,02,750 |
Book Debts |
54,000 |
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Profit transferred to: |
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Stock |
73,125 |
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Rita’s Capital A/c |
70,688 |
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Plant and Machinery |
75,000 |
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Sobha’s Capital A/c |
70,687 |
1,41,375 |
Land and Building |
1,20,000 |
3,22,125 |
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4,78,125 |
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4,78,125 |
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Partners Capital Accounts |
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Dr. |
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Cr. |
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Particulars |
Rita ( `) |
Sobha ( `) |
Particulars |
Rita ( `) |
Sobha ( `) |
||
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Realisation A/c (Assets) |
30,000 |
– |
Balance b/d |
90,000 |
30,000 |
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Reserve Fund |
12,000 |
12,000 |
||
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Bank A/c |
1,42,688 |
1,12,687 |
Realisation A/c (Profit) |
70,688 |
70,687 |
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1,72,688 |
1,12,687 |
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1,72,688 |
1,12,687 |
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Rita’s Loan A/c |
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Dr. |
Cr. |
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Particulars |
( `) |
Particulars |
( `) |
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To Realisation A/c |
15,000 |
Balance b/d |
15,000 |
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15,000 |
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15,000 |
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Bank Account |
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Dr. |
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Cr. |
|||
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Particulars |
( `) |
Particulars |
( `) |
||
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Balance b/d |
30,000 |
Realisation A/c |
1,02,750 |
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Cash A/c |
6,000 |
Rita’s Capital A/c |
1,42,688 |
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Realisation A/c |
3,22,125 |
Sobha’s Capital A/c |
1,12,687 |
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3,58,125 |
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3,58,125 |
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Working Notes:
WN1: Value of Stock Taken Over
by Rita
Stock taken over by Rita=Book Value of Stock×25100×80100
[Since stock is taken over at a discount of 20%]Stock taken over by Rita=75,000×25100×80100=15,000
WN2: Value of Stock Sold
Book Value of Balance of Stock Sold=Value of Stock - Stock Taken over by RitaBook Value of Balance of Stock Sold
=(75,000 - 18,750)= 56,250
Value of Stock Sold=56,250×130100=73,125 [Sold at 30% Profit]
Question 34:
Mala, B and Kala
were in partnership sharing profits in the ratio of 7 : 2 : 1 and the
Balance Sheet of the firm as at 31st March, 2022 was:
|
Liabilities |
(
`) |
Assets |
(
`) |
|
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Capital
A/cs: |
|
Building |
20,000 |
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Mala |
12,410 |
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Plant |
31,220 |
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Neela |
8,650 |
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Goodwill |
10,000 |
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Kala |
80,620 |
1,01,680 |
100
Shares in X Ltd. (At cost) |
2,400 |
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Creditors
|
|
11,210 |
1,000
Shares in Y Ltd. (At cost) |
10,000 |
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Reserve
for Depreciation on Plant |
|
20,000 |
Stock |
11,240 |
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Debtor |
8,740 |
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Bank |
1,210 |
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Patents |
38,080 |
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1,32,890 |
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1,32,890 |
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It was agreed to dissolve the partnership as on 31st March, 2022 and the terms
of dissolution were−
(a) Mala to take over the Building at an agreed amount of
`
31,500.
(b) Neela, who was to carry on the business, to take over the Goodwill, Stock
and Debtor at book value, the Patents at ` 30,000 and Plant
at ` 5,000. He was also to pay the Creditors .
(c) Kala to take over shares in X Ltd. at
` 15
each.
(d) The shares in Y Ltd. to be divided in the profit-sharing ratio.
Show Ledger Accounts recording the dissolution in the books of the firm.
Answer:
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Realisation Account |
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Dr. |
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Cr. |
||||
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Particulars |
` |
Particulars |
` |
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Building |
20,000 |
Creditors |
11,210 |
|||
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Plant |
31,220 |
Reserve for
Depreciation on Plant |
20,000 |
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Good will |
10,000 |
Mala’s Capital A/c: |
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100 Shares in X
Ltd. |
2,400 |
Building |
31,500 |
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1,000 Shares in
Y Ltd. |
10,000 |
Shares of Y Ltd. |
7,000 |
38,500 |
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Stock |
11,240 |
Neela’s Capital A/c: |
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Debtor |
8,740 |
Good will |
10,000 |
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Patents |
38,080 |
Stock |
11,240 |
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Neela’s Capital A/c (Creditors ) |
11,210 |
Debtor |
8,740 |
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Patents |
30,000 |
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Plant |
5,000 |
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Shares of Y Ltd. |
2,000 |
66,980 |
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Kala’s Capital: |
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Shares of X Ltd. |
1,500 |
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Shares of Y Ltd. |
1,000 |
2,500 |
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Loss transferred
to: |
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Mala’s Capital A/c |
2,590 |
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Neela’s Capital A/c |
740 |
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Kala’s Capital A/c |
370 |
3,700 |
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1,42,890 |
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1,42,890 |
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Partners Capital Accounts |
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Dr. |
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Cr. |
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Particulars |
Mala |
Neela |
Kala |
Particulars |
Mala |
Neela |
Kala |
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Realisation A/c
(Assets) |
38,500 |
66,980 |
2,500 |
Balance b/d |
12,410 |
8,650 |
80,620 |
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Realisation A/c
(Loss) |
2,590 |
740 |
370 |
Realisation A/c
(Creditors ) |
– |
11,210 |
– |
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Bank A/c |
– |
– |
77,750 |
Bank A/c |
28,680 |
47,860 |
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41,090 |
67,720 |
80,620 |
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41,090 |
67,720 |
80,620 |
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Bank Account |
|||||
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Dr. |
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Cr. |
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Particulars |
Amount ` |
Particulars |
Amount ` |
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Balance b/d |
1,210 |
Kala’s Capital A/c |
77,750 |
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Mala’s Capital A/c |
28,680 |
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Neela’s Capital A/c |
47,860 |
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77,750 |
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77,750 |
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Working Notes:
Distribution of Shares in Y Ltd.
Distribution of shares in Y Ltd. among the partners:
Mala's Share = 10,000×7/10=
`.7,000
Neela's Share = 10,000×2/10=
`.2,000
Kala's Share = 10,000×1/10=
`.1,000
Question 35:
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:
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BALANCE SHEET OF
SRIJAN, RAMAN AND MANAN as on 31st March, 2017 |
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Liabilities |
(
`) |
Assets |
(
`) |
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Capitals: |
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Capital:
Manan |
10,000 |
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Srijan |
2,00,000 |
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Plant |
2,20,000 |
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Raman |
1,50,000 |
3,50,000 |
Investments |
70,000 |
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Creditors
|
|
75,000 |
Stock |
50,000 |
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Bills
Payable |
|
40,000 |
Debtor |
60,000 |
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Outstanding
Salary |
|
35,000 |
Bank |
10,000 |
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Profit
and Loss Account |
80,000 |
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5,00,000 |
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5,00,000 |
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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)
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Assets
were realised as follows: |
` |
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Plant |
85,000 |
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Stock |
33,000 |
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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 liabillity 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:
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Dr. |
Realisation A/c |
Cr. |
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Particulars |
( `) |
Particulars |
( `) |
||||
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To
Plant |
2,20,000 |
By
Creditors |
75,000 |
||||
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To
Investments |
70,000 |
By
Bills Payable |
40,000 |
||||
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To
Stock |
50,000 |
By
Outstanding Salary |
35,000 |
||||
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To
Debtor |
60,000 |
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To
Srijan’s Capital A/c (Commission) |
11,575 |
By
Bank A/c: |
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To
Bank A/c: |
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Investments |
66,500 |
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Outstanding Bill Repair |
7,500 |
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Plant |
85,000 |
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Contingent liability against bills payable |
15,000 |
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Stock |
33,000 |
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Creditors |
75,000 |
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Debtor |
47,000 |
2,31,500 |
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Bills Payable |
40,000 |
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Outstanding Salary |
35,000 |
1,72,500 |
By
Loss on Realisation transferred to: |
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Srijan’s Capital A/c |
81,030 |
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Raman’s Capital A/c |
81,030 |
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Manan’s Capital A/c |
40,515 |
2,02,575 |
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5,84,075 |
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5,84,075 |
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Dr. |
Partner’s Capital A/c |
Cr. |
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Particulars |
Srijan ( `) |
Raman ( `) |
Manan ( `) |
Particulars |
Srijan ( `) |
Raman ( `) |
Manan ( `) |
||
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To
balance b/d |
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|
10,000 |
By
balance b/d |
2,00,000 |
1,50,000 |
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To
Realisation A/c (Loss) |
81,030 |
81,030 |
40,515 |
By
Realisation A/c (Commission) |
11,575 |
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To
Profit & Loss A/c |
32,000 |
32,000 |
16,000 |
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To
Bank A/c (Final Payment) |
98,545 |
36,970 |
– |
By
Bank A/c |
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66,515 |
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2,11,575 |
1,50,000 |
66,515 |
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2,11,575 |
1,50,000 |
66,515 |
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Dr. |
Bank A/c |
Cr. |
|||
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Particulars |
( `) |
Particulars |
( `) |
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To
balance b/d |
10,000 |
By
Srijan’s Capital A/c |
98,545 |
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To
Realisation A/c (Asset Realised) |
2,31,500 |
By
Raman’s Capital A/c |
36,970 |
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To
Manan’s Capital A/c |
66,515 |
By
Realisation A/c (Liabilities Paid) |
1,72,500 |
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3,08,015 |
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3,08,015 |
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Question 36:
There are two partners X and Y in a firm and their capitals are ` 50,000 and ` 40,000. The Creditors are ` 30,000. The assets of the firm realise ` 1,00,000. How much will X and Y receive?
Answer:
|
Realisation Account |
|||||
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Dr. |
|
Cr. |
|||
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Particulars |
` |
Particulars |
` |
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Sundry Assets (WN) |
1,20,000 |
Creditors |
30,000 |
||
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Cash A/c |
30,000 |
Cash A/c |
1,00,000 |
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Loss transferred to: |
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X’s Capital A/c |
10,000 |
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Y’s Capital A/c |
10,000 |
20,000 |
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|
1,50,000 |
|
1,50,000 |
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Partners Capital Accounts |
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Dr. |
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Cr. |
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Particulars |
X |
Y |
Particulars |
X |
Y |
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Realisation A/c (Loss) |
10,000 |
10,000 |
Balance b/d |
50,000 |
40,000 |
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Cash A/c |
40,000 |
30,000 |
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50,000 |
40,000 |
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50,000 |
40,000 |
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Cash Account |
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Dr. |
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Cr. |
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Particulars |
Amount ` |
Particulars |
Amount ` |
|
||||||||
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Realisation A/c |
1,00,000 |
Realisation A/c |
30,000 |
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X’s Capital A/c |
40,000 |
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Y’s Capital A/c |
30,000 |
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||||||||
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1,00,000 |
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1,00,000 |
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Working Note:
|
Memorandum Balance Sheet |
||||
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Liabilities |
` |
Assets |
` |
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Capital A/c |
|
Sundry Assets |
1,20,000 |
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X |
50,000 |
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(Balancing Figure) |
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Y |
40,000 |
90,000 |
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Creditors |
30,000 |
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1,20,000 |
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1,20,000 |
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Ts Grewal Solution 2022-2023
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Class 12 / Volume – I
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