Question 29:
Yogesh and Naresh were partners sharing profits equally. They dissolved the firm on 1st April, 2022. 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 |
|
|
|
||||
|
Naresh’s Capital A/c |
6,665 |
13,330 |
By
Naresh’s Capital A/c (Investment taken over) |
26,000 |
||||
|
|
|
|
|
|||||
|
|
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 30:
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, 2022, 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 Debtor realised
`
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 31:
Prashant
and
Rajesh are partners in a firm sharing profits and losses in the ratio
of 2 : 1. On 31st March, 2022, 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 |
Amount ( `) |
Particulars |
Amount ( `) |
||
|
|
|
Balance b/d |
34,000 |
||
|
Bank A/c |
34,000 |
|
|
||
|
|
34,000 |
|
34,000 |
||
|
|
|
|
|
||
|
Bank Account |
||||
|
Dr. |
|
Cr. |
||
|
Particulars |
Amount ( `) |
Particulars |
Amount ( `) |
|
|
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 32:
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, 2022 when the Balance Sheet of the firm as under:
|
|
|
|
|||||
|
Liabilities |
(
`) |
Assets |
(
`) |
||||
|
Sundry
Creditors |
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 2022-2023
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Class 12 / Volume – I
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12th TS Grewal’s Accountancy Solutions