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Question
| 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.
Solution
| Journal | ||||
| Date | Particulars | L.F. | Debit Amount (Rs) | Credit Amount (Rs) |
|
Realisation A/c Dr. To Debtors A/c To Stock A/c To Machinery A/c To Furniture A/c (Assets transferred to Realisation Account) |
2,77,500
|
67,500 1,35,000 45,000 30,000
|
||
|
Reserve for Doubtful Debts A/c Dr. Sundry Creditors A/c Dr. Uday’s Wife’s Loan A/c Dr. To Realisation A/c (Liabilities transferred to Realisation Account) |
7,500 15,000 30,000
|
52,500
|
||
|
Bank A/c Dr. To Realisation A/c (Goodwill, Stock and Debtors realised) |
1,89,000
|
1,89,000
|
||
|
Prabhakar’s Capital A/c Dr. Uday’s Capital A/c Dr. To Realisation A/c (Assets taken over) |
40,000 30,000
|
70,000
|
||
|
Realisation A/c Dr. To Uday’s Capital A/c (Wife’s loan discharged) |
30,000
|
30,000
|
||
|
Realisation A/c Dr. To Bank A/c (Creditors and dissolution expenses paid off ) |
18,000
|
18,000
|
||
|
Uday’s Capital A/c Dr. Prabhakar’s Capital A/c Dr. To Realisation A/c (Loss suffered on the realisation) |
8,400 5,600
|
14,000
|
||
|
Uday’s Capital A/c Dr. Prabhakar’s Capital A/c Dr. To Bank A/c (Final payment made) |
1,29,600 44,400
|
1,74,000
|
||
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RELATED QUESTIONS
Dissolution expenses are credited to ______.
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.
Distinguish between 'Dissolution of partnership' and 'Dissolution of partnership firm' on the basis of court's intervention.
L and M were partners in a firm sharing profits in the ratio of 2:3. On 28-2-2016 the firm was dissolved. After transferring assets (other than cash) and outsiders' liabilities to realization account you are given the following information :
(a) A creditor for Rs.1,40,000 accepted building valued at Rs.1, 80,000 and paid to the firm Rs.40,000.
(b) A second creditor for Rs.30,000 accepted machinery valued at Rs.28,000 in full settlement of his claim.
(c) A third creditor amounting to Rs.70,000 accepted Rs.30,000 in cash and investments of the book value of Rs.45,000 in full settlement of his claim.
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Pass necessary journal entries for the above transactions in the books of the firm assuming that all payments were made by cheque.
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.
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.
Pass necessary journal entries on the dissolution of a partnership firm in the following cases :
1) Expenses of dissolution were Rs 9,000.
2) Expenses of dissolution Rs 3,400 were paid by a partner, Vishal
3) Shiv, a partner, agreed to do the work for dissolution for a commission of Rs 4,500. He also agreed to bear the dissolution expenses. Actual dissolution expenses Rs 3,900 were paid from the firm's bank account.
4) Naveen, a partner, agreed to look after the dissolution work for which he was allowed a remuneration of Rs 3,000. Naveen also agreed to bear the dissolution expenses. Actual expenses on dissolution Rs 2,700 were paid by Naveen.
5) Vivek, a partner, was appointed to look after the dissolution work for a remuneration of Rs 7,000. He agreed to bear the dissolution expenses. Actual dissolution expenses Rs 6,500 were paid by Rishi, another partner, on behalf of Vivek.
6) Gaurav, a partner, was appointed to look after the work of dissolution for a commission of Rs 12,500. He agreed to bear the dissolution expenses. Gaurav took over furniture of Rs 12,500 as his commission. The furniture had already been transferred to realisation account.
Pass necessary journal entries on the dissolution of a partnership firm in the following cases :
1) Expenses of dissolution Rs 500 were paid by John, a partner.
2) Joney, a partner, agreed to bear the dissolution expenses for a commission of 750. Actual dissolution expenses 650 were paid by Joney
3) Bony, partner agreed to look after the dissolution work for a remuneration of Rs 3,700. He also agreed to bear the dissolution expenses. Actual dissolution expenses Rs 4,200 were paid by Bony from the firm’s cash.
4) Sony, a partner, was appointed to look after the dissolution work for a remuneration of Rs 10,000. Sony agreed to bear the dissolution expenses. Sony took away stock worth Rs 10,000 as his remuneration. The stock had already been transferred to realisation account.
5) Vikky, a partner, agreed to look after the dissolution work for a remuneration of Rs 12,000. Vikky also agreed to bear the dissolution expenses. Actual dissolution expenses Rs 12,500 were paid by another partner, Clive, on behalf of Vikky.
6) Dissolution expenses were Rs 5,000
Give the word/term/phrase which can substitute the following statement.
Assets which are not recorded in the books of account.
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.
Which accounts are not transferred to Realisation account?
Answer in one sentence only.
Which account is debited on repayment of Partner’s Loan?
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.
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.
On dissolution Bank Overdraft is transferred to Realisation Account.
State whether the following statements is True or False.
At the time of dissolution of Partnership Firm all assets should be transferred to Realisation A/c.
State whether the following statement is True or False with reason.
The insolvency loss at the time of dissolution of the firm is shared by the solvent partners in their profit sharing ratio.
In case of dissolution assets and liabilities are transferred to ______ A/c.
If the number of partners in a firm falls below two, the firm stands_________.
Ganesh and Chandan were partners sharing profits and losses in the proportion of 3:2. They dissolve the partnership firm on 31st March, 2011 when their position was as follows:
Balance Sheet as on 31st March, 2011
| Liabilities | Amount (Rs) |
Assets | Amount (Rs) | |
| Sundry Creditors | 25000 | Debtors | 112500 | 100000 |
| Bank overdraft | 20000 | Less : R.D.D | 12500 | |
| Reserve Fund | 30000 | Stock | 225000 | |
| Capital Accounts: | Furniture | 50000 | ||
| Ganesh | 230000 | Motor Car | 75000 | |
| Chandan | 150000 | Cash in hand | 5000 | |
| 455000 | 455000 | |||
The Assets realised as follows: Debtors Rs 90,000, Stock Rs 2,00,000, and Goodwill Rs 25,000, Motor Car was taken over by Ganesh for Rs 70,000 and Furniture by Chandan for Rs 60,000.
The Creditors were paid Rs 22,500 in full settlement. The expenses of realisation amounted to Rs 10,000.
Pass necessary journal entries in the books of the firm.
Mahesh, Suresh and Jayesh were partners of the firm. They decided to dissolve the firm on 31st March, 2012. Their Balance Sheet as on that date was as under:
Balance Sheet as on 31st March, 2012
| Liabilities | Amount (Rs) | Assets | Amount (Rs) | |
| Creditors | 18000 | Cash at Bank | 9600 | |
| Loan | 4500 | Sundry Assets | 51000 | |
| Capitals | Debtors | 72600 | 69000 | |
| Mahesh | 82500 | Less : R.D.D. | 3600 | |
| Suresh | 30000 | Stock | 23400 | |
| Jayesh | 21000 | Furniture | 3000 | |
| 156000 | 156000 | |||
The firm was dissolved as follows:
1) Mahesh will accept furniture for Rs 2,000 and agreed accept the debtors of book value of Rs 60,000 at on agreed value of Rs 51,000.
2) Suresh will accept stock at an agreed value Rs 20,000, and Sundry Assets of Book value Rs 24,000 at Rs 23,500.
3) Jayesh will accept remaining Sundry Assets for Rs 25,000 He will further accept the liability of loan along with due interest at 12% p.a.
Interest for three months on this loan was outstanding and was not recorded in the books.
4) Expenses of dissolution were Rs 1,000 and outstanding expenses of Rs 1,200 were to be paid from the firm.
5) The remaining debtors were realised Rs 7,000.
Prepare:
1) Realisation A/c
2) Partner’s Capital A/c
3) Bank A/c
Gautam, Viral and Ashwin were Partners sharing profits and losses equally. Their Balance sheet as on 31st December, 2011 was as follows:
Balance Sheet as on 31st 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.
State the difference between dissolution of partnership and dissolution of partnership firm.
Land and Building (book value) ₹ 1,60,000 sold for ₹ 3,00,000 through a broker who charged 2% commission on the deal. Journalise the transaction, at the time of dissolution of the firm.
Manish and Co. Ltd. made an issue of 40000 equity shares of 20 each payable as follows :
Application ₹ 5 per share
Allotment ₹ 10 per share
First call ₹ 3 per share
Second call and
final call ₹ 2 per share
The company received applications for 50000 share of which applications for 10000 shares were rejected and money refunded . All the shareholders paid upto second call except Sunita , the allotee of 400 shares , failed to pay the final call. the expenses of issuing amounted to ₹ 6000 .
Pass Journal entries in the books of Manish and Co . Ltd.
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) | |
| 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.
Gaurav, Saurabh, and Vaibhav were partners in firm sharing profits and losses in the ratio of 2: 2: 1. They decided to dissolve the firm on 31st March 2018. After transferring Sundry assets (other than cash in hand and cash at Bank) and third-party liabilities to realisation account, the assets were realized and liabilities were paid off as follows:
(i) A machinery with a book value of ₹ 6,00,000 was taken over by Gaurav at 50% and stock worth ₹ 5,000 was taken over by a creditor of ₹ 9,000 in full settlement of his claim.
(ii) Land and building (book value ₹ 3,00,000) were sold for ₹ 4,00,000 through a broker who charged 2% commission.
(iii) The remaining creditors were paid ₹ 76,000 in full settlement of their claim and the remaining assets were taken over by Vaibhav for ₹ 17,000.
(iv) Bank loan of ₹ 3,00,000 was paid along with interest of ₹ 21,000.
Pass necessary journal entries for the above transactions in the books of the firm.
Partnership is completely dissolved when the partners of the firm become _________.
Realisation account is __________ on realisation of assets.
Give the word/term/phrase which can substitute the following statement.
Debit balance of Realisation account.
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.
The firm must be dissolved on the retirement of a partner.
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 |
| ₹ 20,000 | ? | ₹ 4,000 | |
| 2) | Creditors | Bills Payable | Third-Party Liabilities |
| ₹16,000 | ₹12,000 | ? | |
| 3) | Credit side total Profit ion of Realisaton A/c | Debit side total of Realisation A/c | Profit of realisation |
| ₹ 21,000 | ₹16,000 | ? | |
| 4) | Debit side total of Capital A/c | Credit side total of Capital A/c | Cash brought by partner |
| ₹ 51,000 | ? | ₹ 17,000 | |
| 5) | capital deficiency | Cash brought by Insolvent Partner | Insolvent loss |
| ? | ₹ 7,000 | ₹ 21,000 |
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 31st 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 31st 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
Seeta and Geeta are partners in the firm sharing Profits and Losses in the ratio of 4:1. They decided to dissolve the partnership on 31st March 2020 on which date their Balance Sheet stood as follows.
| Balance Sheets as on 31st March 2020 | ||||
| Liabilities | Amount ₹ | Assets | Amount ₹ | |
| Capital | Furniture | 14,000 | ||
| Seeta | 90,000 | Plant | 65,000 | |
| Geeta | 40,000 | Trademark | 8,000 | |
| Sundry Creditors | 35,000 | Sundry Debtors | 48,000 | |
| Bank Loan | 15,000 | Less - R. D. D | 3,000 | 45,000 |
| Stock | 30,000 | |||
| Cash in hand | 10,000 | |||
| Advertisement Suspense | 8,000 | |||
| 1,80,000 | 1,80,000 | |||
Additional Information :
1. Plant and Stock taken over by Seeta ₹ 78,000, and ₹ 22,000 respectively
2. Debtors Realised 90% of the Book Value and Trademark at ₹ 5,000. and Goodwill was realised for ₹ 7,000.
3. Unrecorded assets estimated ₹4,500 was sold for ₹1,500.
4. ₹ 1,000 Discount were allowed by creditors while paying their claim.
5. The Realisation Expenses amounted to ₹ 3,500
You are required to prepare Realisation A/c, Cash A/c, and Partners Capital A/c
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.
The account which is prepared on dissolution of a partnership firm:
On dissolution of a firm, a liability taken over by a partner is credited to ______.
Pick the odd one out: (In reference to Dissolution partnership firm)
Complete the table.
| Debit side total of Realisation A/c |
Credit side total of Realisation A/c |
Loss on Realisation |
| ₹ 20,000 | ? | ₹ 4,000 |
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 |
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.
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 | 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.
Mita and Sita, sharing profits in, the ratio 2 : 1, decided to dissolve their partnership firm on 31st 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 | |
| Sita | 10,000 | 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.
Read the following hypothetical situation and answer question on the basis of the same.
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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:
| Nitya, Shreya and Ishita are partners in a firm. They share profits in the ratio of 5 : 3 : 2. Their fixed capitals 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:
