Page No 8.52:
Question 21: Ashish and Kanav were partners ina firm sharing profits and losses in the ratio of 3:2.On 31st March, 2018 their Balance Sheet was as follows:
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BALANCE SHEET OF ASHISH AND KANAV as at 315t March, 2018 |
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|
Liabilities |
` |
Assets |
` |
|
Trade Creditors |
42,000 |
Bank |
35,000 |
|
Employees' Provident Fund |
10,000 |
Stock |
24,000 |
|
Mrs. Ashish's Loan |
9,000 |
Debtors |
19,000 |
|
Kanav's Loan |
35,000 |
Furniture |
40,000 |
|
Workmen's Compensation Fund |
20,000 |
Plant |
2,10,000 |
|
Investment Fluctuation Reserve |
4,000 |
Investments |
32,000 |
|
Capitals: Ashish: 1,20,000 Kanav: 80,000 |
2,00,000 |
Profit and Loss A/c |
10,000 |
|
|
3,70,000 |
|
3,70,000 |
On the above date they decided to dissolve the firm.
(a) Ashish agreed to take over furniture at 38,000 and pay off Mrs. Ashishis loan.
(b) Debtors realised 18,500 and plant realised 10% more.
(c) Kanav took over 40% of the stock at 20% less than the book value. Remaining stock was sold ata gain of 10%.
(d) Trade creditors took over investments in full settlement.
(e) Kanav agreed to take over the responsibility of completing dissolution at an agreed remuneration of 12,000 and to bear realisation expenses. Actual expenses of realisation amounted to 8,000.
Prepare Realisation Account. (CBSE 2019)
Answer:
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Realisation
a/c |
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|
Dr. |
|
|
Cr. |
|
Particulars |
` |
Particulars |
` |
|
To Stock To Debtors To Furnisture To Plant To Investiment To Ashish’s capital a/c Mrs. Ashish loan taken To Kanav’s capital a/c Ageed to bear realization
expenses To Bank a/c EPF paid To Captial – profit
transferred to; Ashish
20,020×3/5=12,012 Kanav
20,020×2/5=8,008 (In the ratio 3:2) |
24,000 19,000 40,000 2,10,000 32,000 9,000 12,000 60,000 20,020 |
By Creditors By employees provident
fund By Mrs. Ashish’s loan By Investment fluctuation
reserve By Ashish’s capital a/c (Furniture taken) By Kanav’s capital a/c Stock(24,000×40%×80%) By Bank a/c (Assets
realised) Debtors =
18,500 Plant =
2,31,000 Stock =
15,840 (24,000×24%×110%) |
42,000 60,000 9,000 4,000 38,000 7,680 2,65,340 |
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|
4,26,020 |
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4,26,020 |
Page No 8.53:
Question 22: A, B and C were partners sharing profits and losses in the ratio of 2:2:1.Their Balance Sheet as at 31st March, 2018 was as follows:
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BALANCE SHEET OF A, B AND Cas at 31st March, 2018 |
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Liabilities |
|
` |
Assets |
|
` |
|
Capitals: A B C Creditors |
7,50,000 3,00,000 2,50,000 2,00,000 |
13,00,000 |
Cash at Bank Sundry Debtors Less: Provision for Bad Debts Stock Fixed Assets |
3,00,000 1,95,000 5,000 |
1,90,000 3,00,000 7,10,000 |
|
|
|
15,00,000 |
|
|
15,00,000 |
On the above date they dissolved the firm and following amounts were realised:
Fixed Assets 6,75,000; StockF3,39,000; Debtors1,35,000; Creditors were paid 1,85,000 in full settlement of their claim. Expenses on realisation amounted toF 19,000.
Pass the necessary Journal entries on the dissolution of the firm. (CBSE 2019)
Answer:
Journal
|
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Date
|
Particulars
|
|
L.F.
|
Dr. `
|
Cr. `
|
31 March
|
Realisation a/c
To
Sundry Debtors a/c
To Stock
A/c
To Fixed
assets A/c
(Being assets transferred to realization account)
|
Dr.
|
|
12,05,000
|
1,95,000
3,00,000
7,10,000
|
31 March
|
Provision for bad debts a/c
Creditors a/c
To
Realisation A/c
(Being
Liabilities transferred to realization account)
|
Dr
Dr.
|
|
5,000
2,00,000
|
2,05,000
|
31 March
|
Realisation a/c
To Bank
a/c
(Being Creditors and expenses Paid)
|
Dr.
|
|
2,04,000
|
2,04,000
|
31 March
|
Bank a/c
To
Realisation A/c
(Being various assets realised)
|
Dr.
|
|
11,49,000
|
11,49,000
|
31 March
|
A’s Capital a/c
B’s Capital a/c
C’s Capital a/c
To Realisation
A/c
(Being Loss on realization transferred to Capitals
account)
|
Dr.
Dr.
Dr.
|
|
22,000
22,000
11,000
|
55,000
|
31 March
|
A’s Capital a/c
B’s Capital a/c
C’s Capital a/c
To Bank
A/c
(Being balance of capital paid to partners)
|
Dr.
Dr.
Dr.
|
|
7,28,000
2,78,000
2,39,000
|
12,45,000
|
Page No 8.53:
Question 23:
Achal and Vichal were partners in a firm sharing profits in the ratio of 3 : 5. On 31st March, 2019, their Balance Sheet was as follows:
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Liabilities |
Amount (
`) |
Assets |
Amount (
`) |
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|
Capital
A/cs:
|
|
Land
and Building |
4,00,000 |
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|
Achal |
3,00,000 |
|
Machinery |
|
3,00,000 |
|
|
Vichal |
5,00,000 |
8,00,000 |
Debtor |
|
2,22,000 |
|
|
Creditors
|
1,79,000 |
Cash
at Bank |
|
78,000 |
||
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Employees'
Provident Fund |
21,000 |
|
|
|
||
|
|
10,00,000 |
|
10,00,000 |
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|
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The firm was dissolved on 1st April, 2019 and the Assets and Liabilities were
settled as follows:
(a) Land and Building realised ` 4,30,000.
(b) Debtor realised ` 2,25,000 (with interest)
and ` 1,000 were recovered for Bad Debts written off last year.
(c) There was an Unrecorded Investment which was sold for
`
25,000.
(d) Vichal took over Machinery at ` 2,80,000 for
cash.
(e) 50% of the Creditors were paid
`
4,000 less in full settlement and the remaining Creditors were paid full amount.
Pass necessary Journal entries for dissolution of the firm.
Answer:
|
Journal |
|||||
|
Date |
Particulars |
L.F. |
Debit Amount (
`) |
Credit Amount (
`) |
|
|
2019 |
Realisation
A/c |
|
|
|
|
|
|
To
Land & Building A/c |
|
|
|
4,00,000 |
|
|
To
Machinery A/c |
|
|
|
3,00,000 |
|
|
To
Debtor A/c |
|
|
|
2,22,000 |
|
|
(Being
assets transferred) |
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Apr.1 |
Creditors A/c |
Dr. |
|
1,79,000 |
|
|
|
Employees’
Provident Fund A/c |
Dr. |
|
21,000 |
|
|
|
To
Realisation A/c |
|
|
|
2,00,000 |
|
|
(Being
liabilities transferred) |
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|
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Apr.1 |
Bank
A/c |
Dr. |
|
4,30,000 |
|
|
|
To
Realisation A/c |
|
|
|
4,30,000 |
|
|
(Being
Land & Building realised) |
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|
|
|
|
|
|
|
|
|
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Apr.1 |
Bank
A/c (2,25,000 + 1,000) |
Dr. |
|
2,26,000 |
|
|
|
To
Realisation A/c |
|
|
|
2,26,000 |
|
|
(Being
Debtor realised along-with Bad-debts recovered) |
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Apr.1 |
Bank
A/c |
Dr. |
|
25,000 |
|
|
|
To
Realisation A/c |
|
|
|
25,000 |
|
|
(Being
Unrecorded Investments sold) |
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|
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|
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Apr.1 |
Bank
A/c |
Dr. |
|
2,80,000 |
|
|
|
To
Realisation A/c |
|
|
|
2,80,000 |
|
|
(Being
Machinery took over by Vichal for Cash) |
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Apr.1 |
Realisation
A/c |
Dr. |
|
1,96,000 |
|
|
|
To
Bank A/c (85,500 + 89,500 + 21,000) |
|
|
|
1,96,000 |
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|
(Being
50% Creditors of ` 89,500 were paid at a discount of ` 4,000 and remaining 50% were settled in full and EPF) |
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Apr.1 |
Realisation
A/c |
Dr. |
|
43,000 |
|
|
|
To
Achal’s Capital A/c |
|
|
|
16,125 |
|
|
To
Vichal’s Capital A/c |
|
|
|
26,875 |
|
|
(Being
profits on realisation transferred) |
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Apr.1 |
Achal’s
Capital A/c |
Dr. |
|
3,16,125 |
|
|
|
Vichal’s
Capital A/c |
Dr. |
|
5,26,875 |
|
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To
Bank A/c |
|
|
|
8,43,000 |
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(Being
Partners paid off) |
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Page No 8.54:
Question 24:
Bale and Yale are equal partners of a firm. They decide to dissolve their partnership on 31st March, 2019 at which date their Balance Sheet stood as:
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|
Liabilities |
` |
Assets |
` |
|
|
Capital
A/cs: |
|
Building |
45,000 |
|
|
Bale |
50,000 |
|
Machinery |
15,000 |
|
Yale |
40,000 |
90,000 |
Furniture |
12,000 |
|
General
Reserve |
|
8,000 |
Debtor |
8,000 |
|
Bale's
Loan A/c |
|
3,000 |
Stock |
24,000 |
|
Creditors
|
|
14,000 |
Bank |
11,000 |
|
|
|
|
|
|
|
|
|
1,15,000 |
|
1,15,000 |
|
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|
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|
(a)
The assets realised were:
Stock ` 22,000; Debtor
`
7,500; Machinery ` 16,000; Building
`
35,000.
(b) Yale took over the Furniture at ` 9,000.
(c) Bale agreed to accept ` 2,500 in full settlement of
his Loan Account.
(d) Dissolution Expenses amounted to ` 2,500.
Prepare the:
(i) Realisation Account; (ii) Capital Accounts of Partners;
(iii) Bale's Loan Account; (iv) Bank Account.
Answer:
|
Realisation Account |
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|
Dr. |
|
Cr. |
|||||||||||
|
Particulars |
Amount ( `) |
Particulars |
Amount ( `) |
||||||||||
|
Building |
45,000 |
Creditors |
14,000 |
||||||||||
|
Machinery |
15,000 |
Bank A/c: |
|
||||||||||
|
Furniture |
12,000 |
Stock |
22,000 |
|
|||||||||
|
Debtor |
8,000 |
Debtor |
7,500 |
|
|||||||||
|
Stock |
24,000 |
Machinery |
16,000 |
|
|||||||||
|
|
|
Building |
35,000 |
80,500 |
|||||||||
|
Bank A/c: |
|
|
|
||||||||||
|
Creditors |
14,000 |
|
Bale’s Loan |
500 |
|||||||||
|
Expenses |
2,500 |
16,500 |
Yale’s Capital A/c (Furniture) |
9,000 |
|||||||||
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Loss transferred to: |
|
||||||||||
|
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|
Bale’s Capital A/c |
8,250 |
|
|||||||||
|
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Yale’s Capital A/c |
8,250 |
16,500 |
|||||||||
|
|
1,20,500 |
|
1,20,500 |
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|
Dr. |
|
Cr. |
|
||||||||||
|
Particulars |
Bale |
Yale |
Particulars |
Bale |
Yale |
|
|||||||
|
Realisation A/c (Loss) |
8,250 |
8,250 |
Balance b/d |
50,000 |
40,000 |
|
|||||||
|
Realisation A/c |
– |
9,000 |
General Reserve |
4,000 |
4,000 |
|
|||||||
|
Bank A/c |
45,750 |
26,750 |
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|
|
|||||||
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|
|
|
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|
|
|||||||
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|
54,000 |
44,000 |
|
54,000 |
44,000 |
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|
|||||||
|
Bale’s Loan Account |
|||||
|
Dr. |
|
Cr. |
|||
|
Particulars |
Amount ( `) |
Particulars |
Amount ( `) |
||
|
Bank A/c |
2,500 |
Balance b/d |
3,000 |
||
|
Realisation A/c |
500 |
|
|
||
|
|
|
|
|
||
|
|
3,000 |
|
3,000 |
||
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|
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|
Bank Account |
|||||
|
Dr. |
|
Cr. |
|||
|
Particulars |
Amount ( `) |
Particulars |
Amount ( `) |
||
|
Balance b/d |
11,000 |
Bale’s Loan |
2,500 |
||
|
Realisation A/c |
80,500 |
Realisation A/c |
16,500 |
||
|
|
|
Bale’s Capital A/c |
45,750 |
||
|
|
|
Yale’s Capital A/c |
26,750 |
||
|
|
|
|
|
||
|
|
91,500 |
|
91,500 |
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