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प्रश्न
Mr. Aaba and Mr. Baba are equal partners whose Balance Sheet as on 31 st March, 2012 was as under:
Balance Sheet as on
31st March, 2012
Liabilities | Amount(Rs.) | Assets | Amount(Rs.) |
Sundry Creditors | 16000 | Cash in hand | 500 |
Capital A/c Aaba Baba |
2000 2000 |
Stock | 4500 |
Debtors | 4000 | ||
Plant and machinery | 5000 | ||
Furniture | 2000 | ||
Land and Building | 4000 | ||
20000 | 20000 |
Due to weak financial position of the partners the firm is dissolved.
Aaba and Baba are not able to contribute anything from their private estate, hence they are declared insolvent.
The assets are realised as follows :-
Stock Rs. 3,000, Plant and Machinery Rs. 3,000, Furniture Rs. 1,000, Land and Building Rs. 2,000 and Debtors Rs. 1,000 only.
Realisation expenses amounted to Rs. 500.
You are required to prepare necessary Ledger Accounts to close the books of the firm.
उत्तर
In the Books of Aaba and Baba
Realisation A/c
Particulars | Amount | Amount | Particulars | Amount | Amount |
To Sundry Assets Stock Debtors Plant and Machinery Furniture Land and Building |
4500 4000 5000 2000 4000 |
19500 |
By Cash A/c Stock Debtors Plant and Machinery Furniture Land and Building |
3000 1000 3000 1000 2000 |
10000 |
To Cash A/c (Realisation Expenses) |
|
500 |
By Loss on Realisation Aaba Baba |
5000 5000 |
10000 |
20000 | 20000 |
Partner's Capital A/c
Particulars | Aaba | Baba | Particulars | Aaba | Baba |
To Realisation A/c (Loss) |
5000 | 5000 | By Balance b/d | 2000 | 2000 |
By Capital Deficiency A/c (Balancing fig.) |
3000
|
3000
|
|||
5000 | 5000 | 5000 | 5000 |
Cash A/c
Particulars | Amount | Amount | Particulars | Amount | Amount |
To Balance b/d | 500 | By Realisation Expenses A/c | 500 | ||
To Realisation A/c | 10000 | ||||
By Sundry Creditors | 10000 | ||||
10500 | 10500 |
Sundry Creditors A/c
Particulars | Amount | Particulars | Amount |
To Cash A/c | 10000 | By Balance b/d | 16000 |
To Capital Deficiency A/c | 6000 | ||
16000 | 16000 |
Capital Deficiency A/c
Particulars | Amount | Amount | Particulars | Amount | Amount |
To Aaba's Capital A/c | 3000 | By Sundry Creditors | 6000 | ||
To Baba's Capital A/c | 3000 | ||||
6000 | 6000 |
APPEARS IN
संबंधित प्रश्न
An account opened to find out the profit or loss on sale of assets and settlement of liabilities.
If an asset is taken over by partner from firm his capital account will be ___________.
Distinguish between 'Dissolution of partnership' and 'Dissolution of partnership firm' on the basis of court's intervention.
Prem and Suresh were partners in a firm sharing profits in the ratio of 7: 8. On 1.4.2015 their firm was dissolved. After transferring assets (other than cash) and outsider's liabilities to realisation account, you given the following information :
(a) Raman, a creditor of Rs 4, 00,000 accepted land valued at Rs 7,00,000 and paid Rs 3,00,000 to the firm.
(b) Gopal, a second creditor for Rs 1,05,000 accepted Rs 90,000 in cash and investments of Rs 14,000 in full settlement of his account.
(c) Hari, a third creditor amounting to Rs 75,000 accepted stock of the book value of Rs 60,000 for Rs 45,000 and the balance was paid to him by cheque.
(d) Loss on dissolution was Rs 45,000.
Pass necessary journal entries for the above transactions in the books of the firm.
Assets and liabilities are transferred to Realisation Account at their ______ value.
Balance Sheet as on 31st March 2012 | |||
Liabilities | Amount (Rs) | Assets | Amount (Rs) |
Sundry Creditors | 15,000 | Cash at bank | 3,000 |
Uday’s Wife’s Loan | 30,000 | Debtors 67,500 | |
Capital A/c | (–) R.D.D. 7,500 | 60,000 | |
Uday | 1,38,000 | Stock | 135000 |
Prabhakar | 90,000 | Machinery | 45000 |
Furniture | 30000 | ||
2,73,000 | 2,73,000 |
The assets were realised as under:
Goodwill Rs. 15,000, Stock Rs. 1,20,000 and Debtors Rs. 54,000.
Machinery was taken over by Prabhakar at Rs. 40,000 and furniture by Uday at book value.
Uday agreed to discharge his wife’s loan.
The creditors were paid at a rebate of Rs. 3,000
The expenses of dissolution amounted to Rs. 6,000
Pass necessary Journal Entries in the books of the firm.
Moli, Bhola and Raj were partners in a firm sharing profits and losses in the ratio of 3 : 3 : 4. Their partnership deed provided for the following :
(i) Interest on capital @ 5% p.a.
(ii) Interest on drawing @ 12% p.a.
(iii) Interest on partners' loan @ 6% p.a.
(iv) Moli was allowed an annual salary of Rs 4,000; Bhola was allowed a commission of 10% of net profit as shown by Profit and Loss Account and Raj was guaranteed a profit of Rs 1,50,000 after making all the adjustments as provided in the partnership agreement.
Their fixed capitals were Moli : Rs 5,00,000; Bhola : Rs 8,00,000 and Raj : Rs 4,00,000. On 1st April, 2016 Bhola extended a loan of Rs 1,00,000 to the firm. The net profit of the firm for the year ended 31st March, 2017 before interest on Bhola's loan was Rs 3,06,000.
Prepare Profit and Loss Appropriation Account of Moli, Bhola and Raj for the year ended 31st March, 2017 and their Current Accounts assuming that Bhola withdrew Rs 5,000 at the end of each month, Moli withdrew Rs 10,000 at the end of each quarter and Raj withdrew Rs 40,000 at the end of each half year.
Moli, Bhola and Raj were partners in a firm sharing profits and losses in the ratio of 3 : 3 : 4. Their partnership deed provided for the following :
(i) Interest on capital @ 5% p.a.
(ii) Interest on drawing @ 12% p.a.
(iii) Interest on partners' loan @ 6% p.a.
(iv) Moli was allowed an annual salary of Rs 4,000; Bhola was allowed a commission of 10% of net profit as shown by Profit and Loss Account and Raj was guaranteed a profit of Rs 1,50,000 after making all the adjustments as provided in the partnership agreement.
Their fixed capitals were Moli : Rs 5,00,000; Bhola : Rs 8,00,000 and Raj : Rs 4,00,000. On 1st April, 2016 Bhola extended a loan of Rs 1,00,000 to the firm. The net profit of the firm for the year ended 31st March, 2017 before interest on Bhola's loan was Rs 3,06,000.
Prepare Profit and Loss Appropriation Account of Moli, Bhola and Raj for the year ended 31st March, 2017 and their Current Accounts assuming that Bhola withdrew Rs 5,000 at the end of each month, Moli withdrew Rs 10,000 at the end of each quarter and Raj withdrew Rs 40,000 at the end of each half year.
If any unrecorded liability is paid on dissolution of the firm ___________ is debited.
Aniket Ltd issued 40,000 equity shares of ` 100 each payable as follows :
On application Rs 20
On allotment Rs 30
On first call Rs 30
On second call Rs 20
The company received applications for 50,000 equity shares. Allotment of shares was made on pro-rata basis. Excess application money were adjusted to allotment. Share allotment and calls were made and also received, except Mr. Sanish who was holding 1,000 shares failed to pay both the calls. His shares were forfeited after the second call.
Record the above transactions in the books of Aniket Ltd
Answer in one sentence only.
What is dissolution of partnership firm?
Answer in one sentence only.
When is Realisation Account opened?
Answer in one sentence only.
Which account is debited on payment of dissolution expenses?
Write the word / term / phrase, which can substitute the following statements.
An account opened to find out the Profit or Loss on Sale of Assets and Settlement of Liabilities.
Write the word / term / phrase, which can substitute the following statement.
Debit balance of an insolvent Partner’s Capital Account.
Write the word / term / phrase, which can substitute the following statement.
Conversion of assets into cash on dissolution of firm.
State whether the following statement is True or False.
At the time of dissolution loan from partner will be transferred to Realisation Account.
State whether the following statement is True or False with reason.
Realisation Loss is not transferred to the insolvent partner’s capital account.
Pannalal, Babulal and Hiralal were partners sharing profits and losses in the proportion of 2:2:1, following is their Balance Sheet as on 31st March, 2008.
Balance Sheet as on 31st March, 2008
Liabilities | Amount (Rs) | Assets | Amount (Rs) | |
Capital Accounts: | Machinery | 25000 | ||
Pannalal | 30000 | Stock | 10000 | |
Babulal | 10000 | Debtors | 27500 | 26000 |
Hiralal | 10000 | Less : R.D.D | 1500 | |
General Reserve | 3000 |
Investment |
12000 | |
Creditors | 20000 | Profit and Loss A/c | 9000 | |
Pannalal’s Loan A/c | 4000 | Bank | 2000 | |
Bills payable | 7000 | |||
84000 | 84000 |
On the above date the partners decided to dissolve the firm:
1) Assets were realised: Machinery Rs 22,500, Stock Rs 9,000, Investment Rs 10,500, Debtors Rs 22,500.
2) Dissolution expenses were Rs 1,500.
3) Goodwill of the firm realised Rs 12,000
Pass the necessary Journal entries in the books of the firm.
Distinguish between firm’s debts and partner’s private debts.
Following is the balance sheet as on 31 st march 2016 of M/s . Jay and Ajay :
Balance sheet as on 31st MArch 2016
Liabilities | Amount | Assets | Assets | |
Capital A/cs : | Cash at bank | 18000 | ||
Jay | 150000 | Stock | 75000 | |
Ajay | 150000 | Furniture | 90000 | |
Reserve fund | 30000 | Investment | 30000 | |
Loan from Jay | 3000 | Machinery | 90000 | |
Bills payable | 6000 | Buildings | 45000 | |
Creditors | 30000 | Debtors | 24000 | 21000 |
Less : R.D.D | 3000 | |||
369000 | 369000 |
The firm was dissolved on 31st March , 2016 and the assets realised were as under :
(1) Jay look over the investment at ₹ 27600 and Ajay took over the furniture at ₹ 84000.
(2) The assets were realised as follows :
Stock 73500 ;
Debtors 22500 ;
Machinery 84000 ;
Building 42000
(3) The creditors were paid off at a discount of 900 and other liabilities were paid in full.
(4) Dissolution expenses were 4200
(5) Jay and Ajay were sharing profits and losses in the ratio of 3 : 2.
Prepare :
1) Realisation Account
2) Capital Account of all partners
3) Bank Account
State whether the following statement is ‘True’ or ‘False’
On dissolution, cash or bank account is closed automatically.
Rahul, Rohit and Ramesh were partners in a firm sharing profits and losses in the ratio of 2:2:1 respectively. The Balance Sheet as on 31.03.2013 was as follows :
Balance Sheet as on 31st Mar, 2013
Liabilities |
Amount
(Rs.)
|
Assets |
Amount
(Rs.)
|
Amount
(Rs.)
|
Sundry Creditors | 20,000 | Cash at Bank | 8000 | |
Bills Payable | 5,000 |
Debtors
|
16000 | |
General Reserve | 6,000 | Less : R.D.D. | (1000) | 15,000 |
Rahul’s Loan A/c | 16,000 | Stock | 20,000 | |
Capital Account | Plant and Machinery | 30,000 | ||
Rahul | 25,000 | Furniture | 6,000 | |
Rohit | 10,000 | Ramesh’s Capital Account | 3,000 | |
82000 | 82000 |
Answer the following question:
State any two situations when a partnership firm can be compulsorily dissolved.
Give the word/term/phrase which can substitute the following statement.
Credit balance of realisation Account.
State whether the following statement is True or False with reason.
At the time of dissolution, a loan from the partner will be transferred to Realisation Account.
Vinod, Vijay, and Vishal are partners in a firm, sharing profit & Losses in the ratio 3:2:1. Vishal becomes insolvent and his capital deficiency is ₹ 6,000. Distribute the capital deficiency among the solvent partners.
Insolvent Partner Capital A/c debit side total is ₹ 10,000 and the credit side total is ₹ 6,000. Calculate deficiency.
Sangeeta, Anita, and Smita were in partnership sharing Profits and Losses in the ratio 2: 2: 1. Their Balance Sheet as on 31st March 2019 was as under:
Balance Sheets as on 31st March, 2019 | |||
Liabilities | Amount (₹) | Assets | Amount (₹) |
Capital: | Land | 2,10,000 | |
Sangeeta | 60,000 | Plant | 20,000 |
Anita | 40,000 | Goodwill | 15,000 |
Smita | 30,000 | Debtors | 1,25,000 |
Sangeeta’s Loan A/c | 1,20,000 | Loans and Advances | 15,000 |
Sundry Creditors | 1,20,000 | Bank | 5,000 |
Bills Payable | 20,000 | ||
3,90,000 | 3,90,000 |
They decided to dissolve the firm as follows:
1. Assets realised as; Land recovered ₹ 1,80,000; Goodwill for ₹ 75,000; Loans and Advances realised ₹ 12,000; 10% of the Debts proved bad;
2. Sangeeta took Plant at book value.
3. Creditors and Bills payable paid at 5% discount.
4. Sangeeta’s Loan was discharged along with ₹ 6,000 as Interest.
5. There was a contingent liability in respect of bills of ₹ 1,00,000 which was under discount. Out of them, a holder of one bill of ₹ 20,000 became insolvent
Show Realisation Account, Partners Capital Account, and Bank Account.
Kalpana and Bela were partners sharing profits and losses in the ratio of 3: 2. Their Balance Sheet as on 31st March, 2019 was as follows:
Balance Sheet as on 31st March 2019 | |||
Liabilities | Amount (₹) | Assets | Amount (₹) |
Capital Accounts: | Building | 14,000 | |
Kalpana | 20,000 | Plant | 18,000 |
Bela | 12,000 | Debtors | 28,000 |
Current Accounts: | Stock | 10,000 | |
Kalpana | 6,000 | Bank | 12,000 |
Bela | 4,000 | ||
Creditors | 34,800 | ||
Bills Payable | 5,200 | ||
82,000 | 82,000 |
The firm was dissolved on the above date and the assets realised as under:
(1) Plant ₹ 16,000, Building ₹ 12,000, Stock ₹ 8,000 and Debtors ₹ 24,000.
(2) Kalpana agreed to pay off the Bill Payable.
(3) Creditors were paid in full.
(4) Dissolution expenses were ₹ 2,800.
Prepare: Realisation A/c, Partner's current A/c, Partner's Capital A/c and Bank A/c.
The object of a partnership firm is ______
A firm is dissolved with the consent of all the partners or in accordance with a contract between the partners is known as ______
Consider the following statements
Statement 1: "Dissolution takes place when the relation among the partner's comes to an end."
Statement 2: "This can be done either voluntarily or compulsorily."
On the basis of the following data, how much final payment will be made to a partner on firm's dissolution?
Credit balance of capital account of the partner was ₹ 50,000. Share of loss on realisation amounted to ₹ 10,000. Firm's liability taken over by him was for ₹ 8,000.
Which of the following is the characteristic of a partnership firm?
At the time of the firm's dissolution, the balance of General Reserve shown in the Balance Sheet is credited to ______.
The court can make an order to dissolve the firm when ______.
Asha, Usha and Nisha are partners in the firm sharing profits and losses in the ratio of 3 : 2 : 1 respectively. On 31st March, 2019 they decided to dissolve the firm when their Balance Sheet was as under:
Balance Sheet as on 31st March, 2019 | |||
Liabilities | Amount (₹) | Assets | Amount (₹) |
Creditors | 28,800 | Building | 1,02,000 |
Bills Payable | 21,600 | Machinery | 73,000 |
Capitol Accounts: | Motor Car | 1,67,600 | |
Asha | 2,27,160 | Goodwill | 45,600 |
Usha | 1,44,000 | Investment | 62,400 |
Nisha | 1,08,000 | Debtors | 30,600 |
Stock | 45,000 | ||
Bank | 3,360 | ||
5,29,560 | 5,29,560 |
The firm was dissolved on the above date and the assets realised as under:
- Asha agreed to take over the Building at ₹ 1,23,600
- Usha took over Goodwill Stock and Debtors at book value and agreed to pay Creditors and Bills payable.
- Motor car and Machinery realised at ₹ 1,51,080 and ₹ 31,680 respectively.
- Investment were taken by Nisha at an agreed value of ₹ 55,440.
- Realisation Expenses amounted to ₹ 6,800.
Prepare:
- Realisation Account
- Partners' Capital Account
- Bank Account
At the time of dissolution of a firm, Creditors are ₹ 70,000; Firm’s Capital is ₹ 1,20,000; Cash Balance is ₹ 10,000. Other assets realised ₹ 1,50,000. Gain/Loss in the realisation account will be ______.
Complete the following table:
Debit side total of Capital A/c |
Credit side total of Capital A/c |
Cash brought by Partner |
₹ 51,000 | ? | ₹ 17,000 |
Hema, Manisha and Limsy were in partnership firm sharing profits and losses in the ratio of 5:3:2. They decided to dissolve their partnership firm on 31st March 2019 and their Balance sheet as on that date stood as:
Balance sheet as on 31st March,2019 | |||
Liabilities | Amount ₹ | Assets | Amount ₹ |
Capital Account: | Machinery | 1,00,000 | |
Hema | 1,50,000 | Debtors | 50,000 |
Manisha | 80,000 | Stock | 70,000 |
Reserve Fund | 10,000 | Cash at Bank | 30,000 |
Sundry Creditors | 20,000 | Limsy Capital A/c | 20,000 |
Bills payable | 10,000 | ||
2,70,000 | 2,70,000 |
The firm was dissolved on 31st March, 2019 and assets were realised as under:
- Machinery realised 60% of its book value.
- Out of debtors, Mr. Jagdish, our customer for ₹ 20,000 was declared insolvent and nothing could be recovered from him. Other debtors are good and recovered and realised.
- Hema took stock at an agreed value of ₹ 50,000.
- Creditors and Bills payable were paid at 10% discount.
- Limsy became insolvent and nothing was recovered from her estate.
Prepare:
- Realisation Account
- Partners’ Capital Account
- Bank Account
Total assets of a partnership firm, which was dissolved were ₹ 30,00,000 and its total liabilities were ₹ 6,00,000. Assets were realised at 80% and liabilities were settled at 5% less. If dissolution expenses were ₹ 30,000 the profit or loss on dissolution was ______.
Aditya, Abhinav and Ankit were partners in a firm sharing profits in the ratio of 4: 3 : 3. On 31st March, 2022, the firm was dissolved. Aditya was appointed to complete the dissolution process for which he was allowed a remuneration of ₹ 42,000. Aditya also agreed to bear dissolution expenses. Actual expenses on dissolution amounted to ₹ 33,000 which were paid by Aditya. Aditya’s Capital Account will be credited by:
Pass necessary Journal Entries for the following transactions on the dissolution of a partnership firm of Mita and Sonu on 31st March, 2022 after the various assets other than cash and third party liabilities have been transferred to the Realisation Account.
- Creditors of ₹ 90,000 took over Land and Building of ₹ 2,00,000 in full settlement of their claim.
- Sonu took over debtors amounting to ₹ 50,000 at ₹ 40,000.
- Realisation expenses ₹ 1,800 were paid by Sonu.
- A machine which was not recorded in the books was taken over by Mita at ₹ 11,000 while its expected market value was ₹ 15,000.
- Sortu agreed to pay off his wife's loan of ₹ 20,000.
- Profit on dissolution amounted at ₹ 50,000.
Sun and Kiran are partners sharing profits and losses equally. They decided to dissolve their firm. Assets and Liabilities have been transferred to Realisation Account. Pass necessary Journal entries for the following:
- All partners are agreed that the process of realisation at the time dissolution will be accomplished by Sun for which he will be paid ₹ 10,000 along with the amount of expense which amounted to 2% of total value realised from the Assets on dissolution. Some assets were sold for Cash at a cumulative Value of ₹ 12,00,000 and the remaining were taken over by creditors at a valuation of ₹ 3,00,000.
- Deferred Advertisement Expenditure A/c appeared in the books at ₹ 28,000.
- Out of the Stock of ₹ 1,20,000; Kiran (a partner) took over 1/3 of the stock at a discount of 25% and 50% of remaining stock was took over by a Creditor of ₹ 30,000 in full settlement of his claim. Balance amount of stock realized at ₹ 25,000.
- An outstanding bill for repairs and renewal of ₹ 3,000 was settled through an unrecorded asset which was valued at ₹ 10,000. Balance being settled in Cash.
Complete the following table:
Debit side total of Realisation A/c | Credit side total of Realisation A/c | Loss on Realisation |
₹ 30,000 | ? | ₹ 24,000 |
? | ₹ 10,000 | ₹ 40,000 |
Insolvent partner Capital A/c debit side total is ₹ 25,000 and credit side total is ₹ 10,000. Calculate deficiency.
Lal, Bal and Pal were partners sharing profits and losses in the ratio of 2 : 2 : 1. The following is the Balance Sheet as on 31st March, 2020.
Balance sheet as on 31st March 2020 | ||||
Liabilities | Amount (₹) | Assets | Amount (₹) | |
Capital A/c | Machinery | 50,000 | ||
Lal | 60,000 | Investments | 24,000 | |
Bal | 20,000 | Debtors | 55,000 | 52,000 |
Pal | 20,000 | Less: R.D.D. | (3,000) | |
General Reserve | 6,000 | Stock | 20,000 | |
Creditors | 48,000 | Profit and loss A/c | 18,000 | |
Bills Payable | 14,000 | Bank | 4,000 | |
168000 | 168000 |
On the above date the partners decided to dissolve the firm.
(1) Assets were realised as:
Machinery | ₹ 45000 |
Stock | ₹ 18000 |
Investment | ₹ 21000 |
Debtors | ₹ 45000 |
(2) Dissolution expenses were ₹ 3000.
(3) Goodwill of the firm realised ₹ 24000.
Prepare:
- Realisation Account
- Partner's Capital Account
- Bank Account.
Read the following hypothetical situation and answer question on the basis of the same.
Nitya, Shreya and Ishita are partners in a firm. They share profit in the ratio of 5 : 3 : 2. Their fixed capital are ₹1,80,000; ₹1,60,000 and ₹2,00,000 respectively. For the year ending 31st March, 2022, Nitya withdrew ₹7,500 at the end of every quarter. |
The average number of months for which interest on drawings will be calculated, will be:
Read the following hypothetical situation and answer question on the basis of the same.
Nitya, Shreya and Ishita are partners in a firm. They share profit in the ratio of 5 : 3 : 2. Their fixed capital are ₹1,80,000; ₹1,60,000 and ₹2,00,000 respectively. For the year ending 31st March, 2022, Nitya withdrew ₹7,500 at the end of every quarter. |
The partnership deed provide that interest on capital will be allowed @10% p.a. The amount of interest on Ishita's capital will be: