Answer in one sentence only. Which accounts are not transferred to Realisation account? - Book Keeping and Accountancy

Liabilities	Amount (Rs. )	Assets	Amount (Rs.)	Amount (Rs.)
Capital Account		Machinery		25,000
A	30,000	Stock		10,000
B	10,000	Debtors	27,500
C	10,000	Less: R.D.D.	1,500	26,000
General Reserve	3,000	Investment		12,000
Creditors	20,000	Profit and Loss A/c		9,000
A’s Loan Account	4,000	Bank		2,000
Bills Payable	7,000
	84,000			84,000

On the above date, the partners decide to dissolve the firm.(1) Assets were realised as -
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 int he books of the firm.

K and P were partners in a firm sharing profits in the ratio of 7:5. On 31-1-2016 their firm was dissolved. After transferring assets (other than cash) and outsiders liabilities to the realization account, you are given the following information:

(a) Raman, a creditor for Rs.4, 20,000 accepted building valued at Rs.8, 00,000 and paid the balance to the firm by a cheque.

(b) Rajeev, a second creditor for Rs.1, 70,000 accepted machinery valued at Rs.1, 65,000 in full settlement of his claim.

(c) Ranjan, a third creditor for Rs.90,000 accepted investments of Rs.45,000 and a bank draft of Rs.43,000 in his favour in full settlement of his claim.

(d) P we appointed to do the work of dissolution for which he was allowed Rs.2,000. Actual expenses of dissolution Rs.2,400 were paid by P.

Pass necessary journal entries for the above transactions in the books of K and P.

Distinguish between 'Dissolution of Partnership' and 'Dissolution of Partnership Firm on the basis of 'Economic Relationship'.

Lal and Pal were partners in a firm sharing profits in the ratio of 3: 7. On 1.4.2015 their firm was dissolved. After transferring assets (other than cash) and outsider's liabilities to realisation account, you are given the following information:

(a) A creditor of Rs.3,60,000 accepted machinery valued at Rs.5,00,000 and paid to the firm Rs.1,40,000.

(b) A Second creditor for Rs.50,000 accepted stock at Rs.45,000 in full settlement of his claim.

(c) A third creditor amounting to Rs.90,000 accepted Rs.45,000 in cash and investments worth Rs.43,000 in full settlement of his claim.

(d) Loss on dissolution was Rs.15,000.

Pass necessary journal entries for the above transactions in the books of firm assuming that all payments were made by cheque.

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 1^st April, 2016 Bhola extended a loan of Rs 1,00,000 to the firm. The net profit of the firm for the year ended 31^st 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 31^st 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.

Give the word/term/phrase which can substitute the following statement.

Assets which are not recorded in the books of account.

Answer in one sentence only.

What is a capital deficiency?

Answer in one sentence only.

What is dissolution of partnership firm?

Answer in one sentence only.

Who should bear the capital deficiency of an insolvent partner?

Write the word / term / phrase, which can substitute the following statement.
Liability likely to arise in future on happening of certain events.

Give the word/term/phrase which can substitute the following statement.

The account which shows realisation of assets and discharge of liabilities.

State whether the following statement is True or False with reason.

Realisation Loss is not transferred to the insolvent partner’s capital account.

Select the most appropriate alternative from those given below :

Partnership is compulsorily dissolved when the partners of the firm become ____________

Sushil and Sumit were in partnership sharing profits and losses in the proportion of 3/5 and 2/5 respectively. On 31^st March, 2005 they decide to dissolve the firm when their Balance Sheet was as under:

Balance Sheet as on 31^st March, 2005

Liabilities	Amount (Rs)	Assets	Amount (Rs)
Sushil’s Capital	20,000	Plant and Machinery	15,000
Sumit's Capital	18,000	Stock	15,000
General Reserve	5,000	Sundry Debtors	22,000
Sumit’s Loan A/c	2,000	Bank	3,000
Sundry Creditors	10,000
	55,000		55,000

The Assets realised as follows: Stock Rs 14,000, Plant and Machinery Rs 12,000 and Debtors Rs 20,000. The Sundry Creditors were paid Rs 9,000 in full settlement.

Prepare: Realisation Account, Partners Capital Accounts and Bank Account.

Gautam, Viral and Ashwin were Partners sharing profits and losses equally. Their Balance sheet as on 31^st December, 2011 was as follows:

Balance Sheet as on 31^st December, 2011

Liabilities	Amount (Rs)	Assets	Amount (Rs)
Capital Accounts:		Building	73,900
Gautam	75000	Furniture	44,100
Virat	45000	Stock	25,400
Reserve Fund	27,000	Debtors	33,600
Creditors	48,500	Cash	15,000
Bank Loan	11,500	Ashwin’s Capital	15,000
	207000		207000

The firm was dissolved due to insolvency of Ashwin and the following was the result.

(i) The realisation of Assets were as follows:

a) The stock was completely damaged and could realise worth Rs 16,500 only.

b) Building was sold for Rs 49,800.

c) Furniture was realised by the firm at Rs 23,100 less than the book value.

d) A Customer who owes Rs 14,400 became insolvent and nothing could be recovered from his private estate.

(ii) Creditors were paid for Rs 36,900 in full settlement and Bank Loan was discharged fully.

(iii) The expenses of realisation Rs 4,100

(iv) Ashwin became insolvent and the firm could recover only Rs 4,000 from his private estate.

Prepare Realisation A/c, Partner’s Capital A/c and cash A/c to close the books of the firm.

(When all partners become insolvent)

Shiv, Sadashiv and Sadanand are Partners in a firm sharing Profit and Losses equally whose Balance-sheet as on 31^st December, 2011 stood as follows:

Balance Sheet as on 31^st December, 2011

Liabilities	Amount (Rs)	Assets	Amount (Rs)
Capital Accounts		Sadanand’s Capital A/c	2000
Shiv	6000	Buildings	18300
Sadashiv	4000	Machinery	12700
Parvati’s Loan	10000	Debtors	9100
Sundry Creditors	30000	Bank	7900
	50000		50000

Shiv, Sadashiv and Sadanand were declared bankrupt and hence the firm was dissolved as on that date:

(i) The sundry Assets realised as follows:

Building Rs 10,900, Machinery Rs 8,200, Debtors Rs 6,800.

(ii) Realisation expenses amounted to Rs 1,300.

(iii) Sadanand was unable to contribute anything-

Whereas Rs 1,100 and Rs 900 were recovered from the realisation of private estate of Shiv and Sadashiv respectively.

You are required to close the books of the firm.

State whether the following statement is True or False.

At the time of disolution of a partnership firm all assets should be transfered to realiasation account.

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	21000
	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

Jay , Ajay and Vijay were partners sharing profits and losses in the proportion of 2 : 2 : 1 . Following is their balance sheet as on 31.03.2013.

Balance sheet as on 31st March 2013

Liabilities	Amount (₹)	Assets		Amount (₹)
Capital A/c		Machinery		50000
Jay	60000	Stock		20000
Ajay	20000	Debtors	55000	52000
Vijay	20000	Less : R.D.D.	(3000)	52000
General Reserve	6000	Investments		24000
Creditors	40000	Profit and loss A/c		18000
Jay's Loan A/c	8000	Bank		4000
Bills Payable	14000
	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 : (1) Realisation Account (2) Partner's Capital Account (3) Bank Account.

All activities of partnership firm cease on _________ of firm.

State whether the following statement is True or False with reason.

At the time of the dissolution of partnership, all assets should be transferred to Realisation Account.

Creditors ₹ 30,000, Bills Payable ₹ 20,000 and Bank Loan ₹ 10,000. Available Bank Balance ₹ 40,000 what will be the amount that creditors will get in case of all partner's insolvency.

Insolvent Partner Capital A/c debit side total is ₹ 10,000 and the credit side total is ₹ 6,000. Calculate deficiency.

Complete the table.

1)	Debit side total of Realisaton A/c	Credit side total of Realisation A/c	Loss on Realisations
1)	₹ 20,000	?	₹ 4,000
2)	Creditors	Bills Payable	Third-Party Liabilities
2)	₹16,000	₹12,000	?
3)	Credit side total Profit ion of Realisaton A/c	Debit side total of Realisation A/c	Profit of realisation
3)	₹ 21,000	₹16,000	?
4)	Debit side total of Capital A/c	Credit side total of Capital A/c	Cash brought by partner
4)	₹ 51,000	?	₹ 17,000
5)	capital deficiency	Cash brought by Insolvent Partner	Insolvent loss
5)	?	₹ 7,000	₹ 21,000

Ganesh and Kartik are partners sharing Profits and Losses equally. They decided to dissolve the firm on 31^stMarch 2018. Their Balance Sheets was as under :

Balance Sheets as on 31^stMarch 2018.
Liabilities	Amount ₹	Assets	Amount ₹
Creditors	18,400	Building	88,000
Bills Payable	5,600	Furniture	12,000
Reserve Fund	20,000	Debtors	32,000
Capital A/c :		Stock	24,000
Ganesh	40,000	Bills Receivable	4,000
Kartik	80,000	Cash	4,000
	1,64,000		1,64,000

Assets were realised as under :

Building ₹82,000, Debtors ₹ 22,000, Stock ₹ 20,000. Bills Receivable ₹ 3,200 and Ganesh agreed to take over Furniture for ₹10,000. Realisation Expenses amounted to ₹ 2,000.

Show Realisation A/c, Partners’ Capital A/c and Cash A/c.

Leela, Manda, and Kunda are partners in the firm ‘Janki Stores’ sharing Profits and Losses in the ratio of 3:2:1 respectively. On 31st March 2018, they decided to dissolve the firm when their Balance Sheet was as under.

Balance Sheets as on 31^st March 2018.
Liabilities	Amount (₹)	Assets	Amount (₹)
Creditors	28,800	Building	1,02,000
Bills Payable	21,600	Machinery	73,000
Capital A/c’s		Motor Car	1,67,600
Leela	2,27,160	Goodwill	45,600
Manda	1,44,000	Investment	62,400
Kunda	1,08,000	Debtors	30,600
		Stock	45,000
		Bank	3,360
	5,29,560		5,29,560

Leela agreed to take over the Building at ₹ 1,23,600. Manda took over Goodwill, Stock, and Debtors at Book values and agreed to pay Creditors and Bills payable. Motor Car and Machinery realised ₹ 1,51,080 and ₹ 31,680 respectively. Investments were taken by Kunda at an agreed value of ₹ 55,440. Realisation expenses amounted to ₹ 6,800.

Pass necessary entries in the books of ‘Janki Stores.’

Shailesh and Shashank were partners sharing Profits and Losses in the ratio of 3:2. Their Balance Sheet as on 31^st March 2019 was as follows.

Balance Sheets as on 31st December 2019.
Liabilities	Amount ₹	Assets	Amount ₹
Capital Account :		Building	7000
Shailesh	10,000	Plant	9,000
Shashank	6,000	Debtors	14,000
Current Account :		Stock	5,000
Shailesh	3,000	Bank	6,000
Shashank	2,000
Creditors	17,400
Bills payable	2,600
	41,000		41,000

The firm was dissolved on the above date and the assets realised as under.

1. Plant ₹ 8,000, Building ₹ 6,000, Stock ₹ 4,000 and Debtors ₹ 12,000.

2. Shailesh agreed to pay of the Bills Payable.

3. Creditors were paid in full.

4. Dissolution expenses were ₹ 1,400

Prepare Realisation A/c, Partners Current A/c, Partners Capital A/c, and Bank A/c

Sangeeta, Anita, and Smita were in partnership sharing Profits and Losses in the ratio 2: 2: 1. Their Balance Sheet as on 31^stMarch 2019 was as under:

Balance Sheets as on 31^st 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.

The object of a partnership firm is ______

Consider the following statements

Statement 1: "On dissolution Cash or Bank Account is closed automatically".

Statement 2: This is done because of the double- entry system of book-keeping.

On dissolution of a firm, a liability taken over by a partner is credited to ______.

What Journal Entry will be passed on dissolution of partnership firm, when creditors of ₹ 40,000 accepted investments of ₹ 50,000 (Book value)?

In the event of dissolution of the firm, the partner's assets are first used for payment of the following:

At the time of the firm's dissolution, the balance of General Reserve shown in the Balance Sheet is credited to ______.

On dissolution of the firm, ______ will be debited to the Realisation Account.

The court can make an order to dissolve the firm when ______.

Mandar and Prasad are partners in a firm sharing profit & losses in the ratio of 3 : 2. The following is their balance sheet as on 31st March, 2019.

Liabilities	Amount (₹)	Assets		Amount (₹)
Capital A/c:		Building		72,000
Mandar	95,000	Plant & Machinery		60,000
Prasad	1,00,000	Furniture		10,000
Creditors	4,000	Debtors	42,000	40,000
Bills Payable	3,000	Less: RDD	2,000	40,000
		Bank		20000
	2,02,000			2,02,000

On 1^st April, 2019 Shubham is admitted for 1/2 share on the following terms:

He paid ₹ 1,00,000 as Capital ₹ 40,000 as his shares of goodwill by RTGS.
Plant & Machinery revalued at ₹ 48,000.
Building is taken over by Mandar at ₹ 100,000.
Reserve for Doubtful Debts (RDD) to be increased upto ₹ 4,000.
The old partners decided to retain half of the amount of goodwill in the business.
The old partners decided to sacrifice equally.

Prepare Partners' Capital Account Only and show your working clearly.

Complete the table.

Creditors	Bills Payable	Third-Party Liabilities
₹ 16,000	₹ 12,000	?

Complete the table.

Debit side total of Realisation A/c	Credit side total of Realisation A/c	Loss on Realisation
₹ 20,000	?	₹ 4,000

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 31^st 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 31^stMarch, 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

Pass the necessary journal entries for the following transactions on the dissolution of the partnership firm of Tanay and Mehak after various assets (other than cash) and external liabilities have been transferred to Realisation Account:

Creditors of ₹ 60,000 accepted stock valued at ₹ 59,000 in full settlement of their claim.
Tanay agreed to pay off his wife's loan of ₹ 12,000.
The firm had a debit balance of ₹ 18,000 in the profit and loss account on the date of dissolution.
An unrecorded liability of ₹ 20,000 was paid by partner, Mehak, at a discount of 10%.
Tanay's loan of ₹ 4,000 was paid through a cheque.
Expenses on dissolution amounted to ₹ 11,000 which were paid by Mehak.

Aditya, Abhinav and Ankit were partners in a firm sharing profits in the ratio of 4: 3 : 3. On 31^st 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:

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

Amul and Anand are partners in the firm sharing profits and losses in the ratio of 4 : 1. They decided to dissolve the partnership on 31st March, 2023 on which date their Balance Sheet stood as follows:

Balance Sheet as on 31st March, 2023
Liabilities	Amount (₹)	Amount (₹)	Assets	Amount (₹)	Amount (₹)
Capital:			Furniture		19,600
Amul	1,26,000	1,82,000	Plant		91,000
Anand	56,000	1,82,000	Trademark		11,200
Sundry Creditors		49,000	Sundry Debtors	67,200
Bank Loan		21 ,000	Less: R.D.D.	4,200	63,000
			Stock		42,000
			Cash in Hand		14,000
			Advertisement Suspense		11,200
		2,52,000			2,52,000

Additional Information:

(1) Plant and Stock taken over by Amul at ₹ 1,09,200 and ₹ 30,800 respectively.

(2) Debtors realised 90% of the book value and Trademark at ₹ 7,000 and Goodwill was realised for ₹ 37,800.

(3) Unrecorded assets estimated ₹ 6,300 was sold for ₹ 2,100.

( 4) ₹ 1,400 Discount were allowed by creditors while paying their claim.

(5) The Realisation expenses amounted to ₹ 4,900.

You are required to prepare Realisation A/c, Cash A/c and Partner's Capital A/cs.

Vinay, Premal and Monil were in partnership sharing profits and losses in the ratio 2 : 2 : 1. They decided to dissolve their partnership firm on 31st March, 2023 and their Balance Sheet on that date stood as:

Balance Sheet as on 31st March, 2023
Liabilities	Amount (₹)	Amount (₹)	Assets	Amount (₹)	Amount (₹)
Capital :			Plant		2,40,000
Vinay	1,80,000	3,60,000	Debtors		90,000
Premal	1,20,000		Stock		1,50,000
Monil	60,000
Loan		24,000
Sundry Creditors		18,000
Bank Overdraft		78,000
		4,80,000			4,80,000

It was agreed that:

(1) Vinay to discharge Loan and to take Debtors at book value.

(2) Plant realised ₹ 2, 70,000.

(3) Stock realised ₹1,44,000.

( 4) Creditors were paid off at a discount of ₹ 90.

Show Realisation Account, Partner's Capital Accounts and Bank Account.

______ means winding-up of partnership firm.

Mita and Sita, sharing profits in, the ratio 2 : 1, decided to dissolve their partnership firm on 31^st March, 2022, on which date their Balance Sheet was as under:

Balance Sheet of Mita and Sita as on 31st March, 2022
Liabilities		(₹)	Assets		(₹)
Sundry Creditors		40,000	Land & Building		29,000
Sita's Son's Loan		2,000	Plant & Machinery		20,000
Bank Overdraft		8,000	Stock		3,000
Capital Accounts:			Debtors	26,400	26,000
Mita	20,000	30,000	Less: Provision for Doubtful Debts	400	26,000
Sita	10,000	30,000	Bank		2,000
		80,000			80,000

The partnership firm was dissolved on the date of the Balance Sheet subject to the following adjustments:

Trade creditors accepted plant and machinery at an agreed valuation of 10% less than the book value and the balance in cash in full settlement of their claims.
Debtors of ₹ 1,000 proved bad.
Sita took over the stock at a discount of 20%.
Realisation expenses of ₹ 1,100 were paid by the firm.

You are required to prepare the Realisation Account.

A firm having a debtor of ₹ 30,000 from whom the amount was due on 30^th June, 2023, gets dissolved on 31st March, 2023. The debtor cleared his dues on the date of dissolution of the firm at a discount of 4% per annum.

Give the journal entry passed by the firm to realise the payment from the debtor.

Answer in one sentence only. Which accounts are not transferred to Realisation account? - Book Keeping and Accountancy

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Answer in one sentence only. Which accounts are not transferred to Realisation account? - Book Keeping and Accountancy

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