Question 45:
A and B were partners sharing
profits and losses as to 7/11th to A and 4/11th to B. They
dissolved the partnership on 30th May, 2022. As on that date their capitals
were: A
`
7,000 and B ` 4,000. There were also due
on Loan A/c to A
`
4,500 and to B ` 750. The other liabilities
amounted to ` 5,000. The
assets proved to have been undervalued in the last Balance Sheet and actually realised `
24,000.
Prepare necessary accounts showing the final settlement between partners.
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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Sundry Assets (WN) |
21,250 |
Other liabilities |
5,000 |
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Cash A/c (Liabilities) |
5,000 |
Cash A/c (Assets Realised) |
24,000 |
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Profit transferred to: |
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A’s Capital A/c |
1,750 |
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B’s Capital A/c |
1,000 |
2,750 |
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29,000 |
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29,000 |
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Partners Capital Accounts |
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Dr. |
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Cr. |
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Particulars |
A |
B |
Particulars |
A |
B |
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Cash A/c |
8,750 |
5,000 |
Balance b/d |
7,000 |
4,000 |
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Realisation A/c |
1,750 |
1,000 |
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8,750 |
5,000 |
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8,750 |
5,000 |
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Partners Loan Accounts |
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Dr. |
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Cr. |
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Particulars |
A |
B |
Particulars |
A |
B |
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Cash A/c |
4,500 |
750 |
Balance b/d |
4,500 |
750 |
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4,500 |
750 |
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4,500 |
750 |
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Cash Account |
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Dr. |
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Cr. |
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Particulars |
` |
Particulars |
` |
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Realisation A/c (Assets) |
24,000 |
A’s Capital A/c |
8,750 |
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B’s Capital A/c |
5,000 |
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A’s Loan A/c |
4,500 |
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B’s Loan A/c |
750 |
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Realisation A/c |
5,000 |
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24,000 |
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24,000 |
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Working Note:
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Memorandum Balance Sheet as on May 30, 2021 |
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Liabilities |
` |
Assets |
` |
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Capital A/cs: |
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Sundry Assets |
21,250 |
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A |
7,000 |
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(Balancing Figure) |
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B |
4,000 |
11,000 |
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A’s Loan |
4,500 |
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B’s Loan |
750 |
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Other Liabilities |
5,000 |
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21,250 |
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21,250 |
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Question 46:
A, B and C
started business on 1st April, 2022 with capitals of ` 1,00,000; ` 80,000 and ` 60,000 respectively sharing
profits (losses) in the ratio of 4 : 3 : 3. For the year ended 31st March,
2022, the firm suffered a loss of `
50,000. Each of the partners withdrew `
10,000 during the year.
On 31st March, 2023, the firm was dissolved, the Creditors of the firm stood at ` 24,000 on that date and Cash
in Hand was ` 4,000. The assets realised ` 3,00,000 and
Creditors were paid ` 23,500 in full settlement of
their claims.
Prepare Realisation Account and show your workings
clearly.
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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Sundry Assets (WN 2) |
1,80,000 |
Sundry Creditors |
24,000 |
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Cash A/c (Creditors ) |
23,500 |
Cash A/c (Assets) |
3,00,000 |
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Profit transferred to: |
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A’s Capital A/c |
48,200 |
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B’s Capital A/c |
36,150 |
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C’s Capital A/c |
36,150 |
1,20,500 |
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3,24,000 |
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3,24,000 |
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Partners Capital Accounts |
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Dr. |
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Cr. |
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Particulars |
A |
B |
C |
Particulars |
A |
B |
C |
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Balance b/d |
70,000 |
55,000 |
35,000 |
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Cash A/c |
1,18,200 |
91,150 |
71,150 |
Realisation A/c |
48,200 |
36,150 |
36,150 |
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1,18,200 |
91,150 |
71,150 |
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1,18,200 |
91,150 |
71,150 |
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Cash Account |
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Dr. |
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Cr. |
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Particulars |
(`) |
Particulars |
(`) |
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Balance b/d |
4,000 |
Realisation A/c |
23,500 |
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Realisation A/c |
3,00,000 |
A’s Capital A/c |
1,18,200 |
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B’s Capital A/c |
91,150 |
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C’s Capital A/c |
71,150 |
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3,04,000 |
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3,04,000 |
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Working Notes:
WN 1 Calculation of Partners Capital as
on April 01, 2022
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Particulars |
X |
Y |
Z |
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Capital as on April 01, 2021 |
1,00,000 |
80,000 |
60,000 |
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Less: Drawings |
(10,000) |
(10,000) |
(10,000) |
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Less: Share of Loss (4 : 3 : 3) |
(20,000) |
(15,000) |
(15,000) |
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Capital as on April 01, 2022 |
70,000 |
55,000 |
35,000 |
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WN 2
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Memorandum Balance Sheet as on March 31, 2023 |
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Liabilities |
(`) |
Assets |
(`) |
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Capital A/cs: |
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Cash in Hand |
4,000 |
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A |
70,000 |
Sundry Assets |
1,80,000 |
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B |
55,000 |
(Balancing figure) |
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C |
35,000 |
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Creditors |
24,000 |
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1,84,000 |
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1,84,000 |
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Question 47:
Pritya,
Komal and Rakhi
were in partnership sharing profits and losses in the ratio of 2 : 1 : 1. They decided to dissolve the partnership. On that
date of dissolution, Sundry Assets (including cash `
5,000) amounted to ` 88,000, assets realised ` 80,000 (including an
unrecorded asset which realised ` 4,000). A contingent
liability on account of bills discounted `
8,000 was paid by the firm. The Capital Accounts of A, B and C
showed a balance of
`
20,000 each.
Prepare Realisation Account, Partners' Capital
Accounts and Cash Account.
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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Sundry Assets |
83,000 |
Sundry Liabilities (WN ) |
28,000 |
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Cash A/c (Assets realised) |
80,000 |
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Cash A/c: |
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Loss transferred to: |
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Sundry Liabilities |
28,000 |
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A’s Capital A/c |
5,500 |
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Contingent Liabilities |
8,000 |
36,000 |
B’s Capital A/c |
2,750 |
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C’s Capital A/c |
2,750 |
11,000 |
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1,19,000 |
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1,19,000 |
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Partners Capital Accounts |
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Dr. |
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Cr. |
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Particulars |
A |
B |
C |
Particulars |
A |
B |
C |
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Realisation A/c (Loss) |
5,500 |
2,750 |
2,750 |
Balance b/d |
20,000 |
20,000 |
20,000 |
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Bank A/c |
14,500 |
17,250 |
17,250 |
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20,000 |
20,000 |
20,000 |
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20,000 |
20,000 |
20,000 |
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Cash Account |
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Dr. |
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Cr. |
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Particulars |
` |
Particulars |
` |
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Balance b/d |
5,000 |
Realisation A/c |
36,000 |
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Realisation A/c |
80,000 |
A’s Capital A/c |
14,500 |
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B’s Capital A/c |
17,250 |
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C’s Capital A/c |
17,250 |
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85,000 |
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85,000 |
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Working Notes:
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Memorandum Balance Sheet |
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Liabilities |
` |
Assets |
` |
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Capital A/cs: |
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Cash in Hand |
5,000 |
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A |
20,000 |
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Sundry Assets |
83,000 |
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B |
20,000 |
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C |
20,000 |
60,000 |
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Sundry Liabilities |
28,000 |
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(Balancing figure) |
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88,000 |
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88,000 |
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Question 48:
The partnership
between A and B was dissolved on 31st March, 2022. On that
date the respective credits to the capitals were A − `
1,70,000 and B −
`
30,000. ` 20,000 were owed by B
to the firm;
`
1,00,000 were owed by the firm to A and `
2,00,000 were due to the Trade Creditors . Profits and losses were shared in
the proportions of 2/3 to A, 1/3 to B.
The assets represented by the above stated net liabilities realise ` 4,50,000
exclusive of ` 20,000 owed by B.
The liabilities were settled at book figures. Prepare Realisation
Account, Partners' Capital Accounts and Cash Account showing the distribution
to the partners.
Answer:
|
Realisation Account |
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Dr. |
|
Cr. |
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Particulars |
(`) |
Particulars |
(`) |
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Sundry
Assets (WN) |
4,80,000 |
Trade
Creditors |
2,00,000 |
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B’s
Loan |
20,000 |
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Cash
(Assets realised) |
4,50,000 |
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Cash
A/c (Creditors ) |
2,00,000 |
B’s
Capital A/c (B’s Loan) |
20,000 |
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Loss
transferred to: |
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A’s
Capital A/c |
20,000 |
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B’s
Capital A/c |
10,000 |
30,000 |
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7,00,000 |
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7,00,000 |
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Partners Capital Accounts |
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Dr. |
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Cr. |
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Particulars |
A |
B |
Particulars |
A |
B |
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Realisation A/c |
– |
20,000 |
Balance
b/d |
1,70,000 |
30,000 |
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Realisation A/c (Loss) |
20,000 |
10,000 |
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Cash
A/c |
1,50,000 |
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1,70,000 |
30,000 |
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1,70,000 |
30,000 |
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Cash Account |
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Dr. |
|
Cr. |
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Particulars |
(`) |
Particulars |
(`) |
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Realisation A/c (Assets) |
4,50,000 |
Realisation A/c (Creditors ) |
2,00,000 |
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A’s
Capital A/c |
1,50,000 |
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A’s
Loan A/c |
1,00,000 |
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4,50,000 |
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4,50,000 |
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Working
Notes:
|
Memorandum Balance Sheet |
||||
|
Liabilities |
(`) |
Assets |
(`) |
|
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Capital
A/cs: |
|
B’s
Loan |
20,000 |
|
|
A |
1,70,000 |
|
|
|
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B |
30,000 |
2,00,000 |
Sundry
Assets |
4,80,000 |
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A’s
Loan |
1,00,000 |
(Balancing
figure) |
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Trade
Creditors |
2,00,000 |
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5,00,000 |
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5,00,000 |
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Ts Grewal Solution 2023-2024
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Class 12 / Volume – I