Page No 8.54:
Question 25: P,Q and R were partners in a firm sharing profits and losses in the ratio of 5:3:2.They agreed to dissolve their partnership firm on 31st March, 2021. P was deputed to realise the assets and pay the liabilities. He was paid T 1,000 as commission for his services. The financial position of the firm was:
BALANCE
SHEET as at 31st March, 2021 |
|||
Liabilities |
` |
Assets |
` |
Creditors Bills Payable Investments Fluctuation Reserve Capital A/cs: P- 37,550 Q- 15,000 |
10,000 3,700 4500 52,550 |
Stock Investments Debtors 7,100 Less: Provision for Doubtful Debts 450 Cash R's Capital A/c Plant and Machinery |
5,500 15,000 6,650 5,600 8,000 30,000 |
|
70,750 |
|
70,750 |
P took Investments for R 12,500. Stock and Debtors realized `11,500. Plant and Machinery were sold to Q for 22,500 for cash. Unrecorded assets realised `1,500. Realisation expenses paid amounted to ` 900.
Prepare necessary Ledger Accounts to close the books of the firm.
Answer:
Revaluation
a/c
|
|||
Dr.
|
|
|
Cr.
|
Particulars
|
`
|
Particulars
|
`
|
To plant and machinery
To Stock
To Investment
To Debtors
To P’s capital a/c(Commission)
To Cash a/c (expenses)
To Cash a/c (liabilities paid)
Creditors 10,000
Bills payable 3,700
|
30,000
5,500
15,000
7,100
1,000
900
13,700
|
By Provision for Doubtful Debts
By Creditors
By Bills
payable
By Investment fluctuation
reserve By P’s capital a/c
(Investment taken)
By Cash a/c (Assets realised)
Stock, debtors 115,00
Unrecorded assets 1,500
Plant and machinery 22,500
By Capital a/c -transferred to;
P=6,550×5/10=3,275
Q=6,550×3/10=1,965
R=6,550×2/10=1,310
|
450
10,000
3,700
4,500
12,500
35,500
6,550
|
|
73,200
|
|
73,200
|
1
|
Partners Capital
Accounts |
||||||||||||||
|
Dr. |
|
Cr. |
||||||||||||
|
Particulars |
P |
Q |
R |
Particulars |
P |
Q |
R |
|||||||
|
Balance
b/d |
– |
– |
8,000 |
Balance
b/d |
37,550 |
15,000 |
– |
|||||||
|
Realisation A/c
|
12,500 3,275 |
1,965 |
1,310 |
Realisation
A/c |
1,000 |
– |
– 9,310 |
|||||||
|
(Loss transferred)
|
||||||||||||||
|
Cash
A/c |
22,775 |
13,035 |
|
|
|
|
||||||||
|
|
38,550 |
15,000 |
9,310 |
|
38,550 |
15,000 |
9,310 |
|||||||
|
|
|
|
|
|
|
|
|
|||||||
Cash
Account |
|
||||||||||||||
Dr. |
|
Cr. |
|
||||||||||||
Particulars |
Amount ( `) |
Particulars |
Amount ( `) |
|
|||||||||||
Balance b/d |
5,600 |
Realisation A/c(expenses)
|
900 |
|
|||||||||||
Realisation A/c |
35,500 |
Realisation A/c(liabilities paid)
|
13,700 |
|
|||||||||||
R’s Capital A/c |
9,310 |
P’s Capital A/c |
22,775 |
|
|||||||||||
|
|
Q’s Capital A/c |
13,035 |
|
|||||||||||
|
50,410 |
|
50,410 |
|
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Page No 8.55:
Question 26:
Shilpa, Meena and Nanda decided to dissolve their partnership on
31st March, 2019. Their profit-sharing ratio was 3 : 2 : 1 and their Balance
Sheet was as under:
BALANCE SHEET OF SHILPA, MEENA AND NANDA as at 31st March, 2019 |
||||
Liabilities |
` |
Assets |
` |
|
Capital
A/cs: |
|
Land |
81,000 |
|
Shilpa |
80,000 |
|
Stock |
56,760 |
Meena |
40,000 |
1,20,000 |
Debtor |
18,600 |
Bank
Loan |
|
20,000 |
Nanda's
Capital |
23,000 |
Creditors
|
|
37,000 |
Cash |
10,840 |
Provision
For Doubtful Debts |
|
1,200 |
|
|
General
Reserve |
|
12,000 |
|
|
|
|
|
|
|
|
|
1,90,200 |
|
1,90,200 |
|
|
|
|
|
It
is agreed as follows:
The stock of value of ` 41,660 are taken over by
Shilpa for ` 35,000 and she agreed to
discharge bank loan. The remaining stock was sold at
`
14,000 and Debtor amounting to ` 10,000
realised ` 8,000. Land is sold
for ` 1,10,000. The remaining Debtor realised 50% at their book
value. Cost of realisation amounted to ` 1,200. There was
a typewriter not recorded in the books worth of ` 6,000 which were
taken over by one of the Creditors at
this value. Prepare Realisation Account, Partners' Capital Accounts, and Cash
Account to Close the books of the firm.
Answer:
Realisation
Account |
|
||||||||
Dr. |
|
Cr. |
|
||||||
Particulars |
Amount (
`) |
Particulars |
Amount (
`) |
||||||
Land |
81,000 |
Bank
Loan |
20,000 |
||||||
Stock |
56,760 |
Creditors
|
37000 |
||||||
Debtor |
18,600 |
Provision
for doubtful debts |
1,200 |
||||||
Shilpa’s
Capital A/c |
20,000 |
Shilpa’s
Capital A/c (Stock) |
35,000 |
||||||
Cash: |
|
Cash: |
|
||||||
Creditors
|
31000 |
|
Stock |
14000 |
|
||||
Realisation
Expenses |
1,200 |
32200 |
Debtor |
12300 |
|||||
Realisation
Profit |
|
Land |
1,10,000 |
1,36,300 |
|||||
Shilpa’s
Capital A/c |
10,470 |
|
|
|
|
|
|||
Meena’s
Capital A/c |
6,980 |
|
|
|
|||||
Nanda’s
Capital A/c |
3,490 |
20,940 |
|
|
|||||
|
2,29,500 |
|
2,29,500 |
||||||
|
|
|
|
||||||
Partners Capital
Account |
|
||||||||
Dr. |
|
Cr. |
|
||||||
Particulars |
Shilpa |
Meena |
Nanda |
Particulars |
Shilpa |
Meena |
Nanda |
||
Balance
b/d |
– |
– |
23,000 |
Balance
b/d |
80,000 |
40,000 |
– |
||
Realisation |
35,000 |
|
|
General
Reserve |
6,000 |
4,000 |
2,000 |
||
(Stock) |
|
|
|
Realisation |
20,000 |
|
|
||
Cash |
81,470 |
50,980 |
|
(Bank
Loan) |
|
|
|
||
|
|
|
|
Realisation
(Profit) |
10,470 |
6,980 |
3,490 |
||
|
|
|
|
Cash |
|
|
17,510 |
||
|
1,16,470 |
50,980 |
23,000 |
|
1,16,470 |
50,980 |
23,000 |
||
|
|
|
|
|
|
|
|
||
Cash Account |
|
|||||
Dr. |
|
Cr. |
|
|||
Particulars |
Amount (
`) |
Particulars |
Amount (
`) |
|||
Balance
b/d |
10,840 |
Realisation
(Expenses) |
32,200 |
|||
Realisation
(Assets) |
1,36,300 |
Shilpa’s
Capital A/c |
81,470 |
|||
Nanda’s
Capital A/c |
17,510 |
Meena’s
Capital A/c |
50,980 |
|||
|
|
|
|
|||
|
1,64,650 |
|
1,64,650 |
|||
|
|
|
|
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Page No 8.55:
Question 27:
A and B are
partners in a firm sharing profits and losses in the ratio of 3 : 2. On 31st
March, 2019, their Balance Sheet was as follows:
BALANCE SHEET as at 31st
March, 2019 |
|||||
Liabilities |
(
`) |
Assets |
(
`) |
||
Creditors
|
38,000 |
Cash
at Bank |
11,500 |
||
Mr. A's
Loan |
10,000 |
Stock |
6,000 |
||
B's Loan |
15,000 |
Debtor |
19,000 |
||
Reserve |
5,000 |
Furniture |
4,000 |
||
A's Capital |
10,000 |
|
Plant |
28,000 |
|
B's Capital |
8,000 |
18,000 |
Investments |
10,000 |
|
|
|
|
Profit
and Loss A/C |
7,500 |
|
|
|
|
|
|
|
|
|
86,000 |
|
86,000 |
|
|
|
|
|
|
|
The firm was dissolved on 31st March, 2019 and both the partners agreed to the
following:
(a) A took Investments at an agreed value of
`
8,000. He also agreed to settle M `. A's
Loan.
(b) Other assets realised as: Stock − ` 5,000; Debtor − ` 18,500; Furniture − ` 4,500; Plant − ` 25,000.
(c) Expenses of realisation came to ` 1,600.
(d) Creditors agreed to accept
`
37,000 in full settlement of their claims.
Prepare Realisation Account, Partners' Capital Accounts and Bank Account.
Answer:
Realisation Account |
||||||||||
Dr. |
|
Cr. |
||||||||
Particulars |
Amount ( `) |
Particulars |
Amount ( `) |
|||||||
Stock |
6,000 |
Creditors |
38,000 |
|||||||
Debtor |
19,000 |
M `. A’s Loan |
10,000 |
|||||||
Furniture |
4,000 |
|
|
|||||||
Plant |
28,000 |
A’s Capital A/c (Investments) |
8,000 |
|||||||
Investments |
10,000 |
Bank A/c: |
|
|||||||
A’s Capital A/c (M `. A’s loan) |
10,000 |
Stock |
5,000 |
|
||||||
Bank A/c : |
|
Debtor |
18,500 |
|
||||||
Expenses |
1,600 |
|
Furniture |
4,500 |
|
|||||
Creditors |
37,000 |
38,600 |
Plant |
25,000 |
53,000 |
|||||
|
|
Loss transferred to: |
|
|||||||
|
|
A’s Capital A/c |
3,960 |
|
||||||
|
|
B’s Capital A/c |
2,640 |
6,600 |
||||||
|
1,15,600 |
|
1,15,600 |
|||||||
|
|
|
|
|||||||
Partners Capital Accounts |
|
|||||||||
Dr. |
|
Cr. |
|
|||||||
Particulars |
A |
B |
Particulars |
A |
B |
|
||||
Realisation (loss) |
3,960 |
2,640 |
Balance b/d |
10,000 |
8,000 |
|
||||
Realisation A/c |
8,000 |
– |
Reserve A/c |
3,000 |
2,000 |
|
||||
Profit and Loss A/c |
4,500 |
3,000 |
Realisation A/c |
10,000 |
– |
|
||||
Bank A/c |
6,540 |
4,360 |
|
|
|
|
||||
|
23,000 |
10,000 |
|
23,000 |
10,000 |
|
||||
|
|
|
|
|
|
|
||||
|
|
|
|
|
|
|
|
|
||
B’s Loan Account |
|||||
Dr. |
|
Cr. |
|||
Particulars |
Amount ( `) |
Particulars |
Amount ( `) |
||
|
|
Balance b/d |
15,000 |
||
Bank A/c |
15,000 |
|
|
||
|
15,000 |
|
15,000 |
||
|
|
|
|
||
Bank Account |
|||||
Dr. |
|
Cr. |
|||
Particulars |
Amount ( `) |
Particulars |
Amount ( `) |
||
Balance b/d |
11,500 |
Realisation A/c |
38,600 |
||
Realisation A/c |
53,000 |
A’s Capital A/c |
6,540 |
||
|
|
B’s Capital A/c |
4,360 |
||
|
|
B’s Loan A/c |
15,000 |
||
|
64,500 |
|
64,500 |
||
|
|
|
|
||
Page No 8.56:
Question 28:
Balance Sheet of P, Q and R as at 31st
March, 2019, who were sharing profits in the ratio of 5 : 3 : 1, was:
Liabilities |
Amount ( `) |
Assets |
Amount ( `) |
||
Bills
Payable |
40,000 |
Cash
at Bank |
40,000 |
||
Loan
from Bank |
30,000 |
Stock |
19,000 |
||
General
Reserve |
9,000 |
Sundry
Debtor |
42,000 |
|
|
Capital
A/cs: |
|
Less: Provision for
Doubtful Debts |
2,000 |
40,000 |
|
P |
44,000 |
|
|
|
|
Q |
36,000 |
|
Building |
40,000 |
|
R |
20,000 |
1,00,000 |
Plant
and Machinery |
40,000 |
|
|
|
|
|
|
|
|
1,79,000 |
|
1,79,000 |
||
|
|
|
|
The partners dissolved the business. Assets realised − Stock
`
23,400; Debtor 50%; Fixed Assets 10% less than their book value. Bills Payable
were settled for ` 32,000. There was an
Outstanding Bill of Electricity ` 800 which was
paid off. Realisation expenses ` 1,250 were also
paid.
Prepare Realisation Account, Partner's Capital Accounts and Bank Account.
Answer:
Realisation Account |
||||||
Dr. |
|
Cr. |
||||
Particulars |
Amount ( `) |
Particulars |
Amount ( `) |
|||
Building |
40,000 |
Provision for Doubtful Debts |
2,000 |
|||
Plant and machinery |
40,000 |
Bills Payable |
40,000 |
|||
Stock |
19,000 |
Loan from Bank |
30,000 |
|||
Sundry Debtor |
42,000 |
|
|
|||
Bank A/c: |
|
Bank A/c: |
|
|||
Bills Payable |
32,000 |
|
Stock |
23,400 |
|
|
Outstanding Bill |
800 |
|
Debtor |
21,000 |
|
|
Expenses |
1,250 |
|
Building |
36,000 |
|
|
Loan from Bank |
30,000 |
64,050 |
Plant and Machinery |
36,000 |
1,16,400 |
|
|
|
Loss transferred to: |
|
|||
|
|
P’s Capital A/c |
9,250 |
|
||
|
|
Q’s Capital A/c |
5,550 |
|
||
|
|
RCapital A/c |
1,850 |
16,650 |
||
|
2,05,050 |
|
2,05,050 |
|||
|
|
|
|
|||
Partners Capital
Accounts |
|||||||||
Dr. |
|
Cr. |
|||||||
Particulars |
P |
Q |
R |
Particulars |
P |
Q |
R |
||
Realisation
A/c (Loss) |
9,250 |
5,550 |
1,850 |
Balance
b/d |
44,000 |
36,000 |
20,000 |
||
|
|
|
|
Reserve
Fund |
5,000 |
3,000 |
1,000 |
||
Bank
A/c |
39,750 |
33,450 |
19,150 |
|
|
|
|
||
|
49,000 |
39,000 |
21,000 |
|
49,000 |
39,000 |
21,000 |
||
|
|
|
|
|
|
|
|
||
Bank
Account |
|||||
Dr. |
|
Cr. |
|||
Particulars |
Amount ( `) |
Particulars |
Amount ( `) |
||
Balance b/d |
40,000 |
Realisation A/c |
64,050 |
||
Realisation A/c |
1,16,400 |
P’s Capital A/c |
39,750 |
||
|
|
Q’s Capital A/c |
33,450 |
||
|
|
R’s Capital A/c |
19,150 |
||
|
1,56,400 |
|
1,56,400 |
||
|
|
|
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