12th | Ts grewal 2021-2022 Question 5 to 8 | Dissolution of Partnership

Page No 8.47:

Question 5:

Pass Journal entries for the following:
(a) Realisation expenses amounted to  ` 10,000 were paid by the firm on behalf of Alok, a partner, with whom it was agreed at  ` 7,500.
(b) Realisation expenses amounted to  ` 5,000. It was agreed that the firm will pay  ` 2,000 and balance by Ravinder, a partner.
(c) Dissolution expenses amounted to  ` 10,000 were paid by Amit, a partner, on behalf of the firm.

Answer:

	Journal
S.N.	Particulars		L.F.	Debits Amount  `	Credit Amount  `
(a)	Realisation A/c	Dr.		7,500
	To Alok’s Capital A/c				7,500
	(Remuneration allowed to Alok)
	Alok’s capital A/c	Dr.		10,000
	To Bank A/c				10,000
	(Expenses paid by the firm on behalf of Alok)
	Alternatively, only one single entry can also be passed instead of above two entries.
	Realisation A/c	Dr.		7,500
	Alok’s Capital A/c	Dr.		2,500
	To Bank A/c				10,000
	(Realisation expenses paid)
(b)	Realisation A/c	Dr.		5,000
	To Ravinder’s Capital A/c				3,000
	To Bank A/c				2,000
	(Realisation expenses paid)
(c)	Realisation A/c	Dr.		10,000
	To Amit’s Capital A/c				10,000
	(Realisation expenses paid by Amit on behalf of the firm)

 

Page No 8.47:

Question 6:

Record necessary Journal entries in the following cases:
(a) Creditors  worth  ` 85,000 accepted  ` 40,000 as cash and Investment worth  ` 43,000, in full settlement of their claim.
(b) Creditors were  ` 16,000. They accepted Machinery valued at  ` 18,000 in settlement of their claim.
(c) Creditors were  ` 90,000. They accepted Building valued at  ` 1,20,000 and paid cash to the firm  ` 30,000.

Answer:

Journal
	Particulars			L.F.	Amount ( `)	Amount ( `)
(a)	Realisation A/c		Dr.		40,000
	To Cash A/c					40,000
	(Creditors  worth  ` 85,000 accepted 40,000 as cash and investment worth  ` 43,000 in full settlement)
(b)	No Entry
	(Creditors  worth  ` 16,000 accepted Machinery worth  ` 18,000 in full settlement. No entry as both asset and liability are already transferred to the Realisation Account)
(c)	Cash A/c	Dr.			30,000
	To Realisation A/c					30,000
	(Creditors  worth  ` 90,000 accepted Building worth  ` 1,20,000 and paid back ` 30,000 as cash after settlement of claim to the firm)

Page No 8.48:

Question 7:

Pass Journal entries for the following at the time of dissolution of a firm:
(a) Sale of Assets −  ` 50,000.
(b) Payment of Liabilities −  ` 10,000.
(c) A commission of 5% allowed to Mr. X, a partner, on sale of assets.
(d) Realisation expenses amounted to  ` 15,000. The firm had agreed with Amrit, a partner, to reimburse him up to  ` 10,000.

(e) Employees providend fund `10,000,
(f) Z, an old customer, whose account for  ` 6,000 was written off as bad in the previous year, paid 60% of the amount written off.
(g) Investment (Book Value  ` 10,000) realised at 150%.

(h) Realisation expenses were `10,000. the firm had agreed with krishan , a partner , to reimburse him up to ` 7,500.

Answer:

Journal
S.N.	Particulars		L.F.	Debits Amount  `	Credit Amount  `
(a)	Cash A/c	Dr.		50,000
	To Realisation A/c				50,000
	(Assets realized for cash)
(b)	Realisation A/c	Dr.		10,000
	To Cash A/c				10,000
	(Payment of liabilities made)
(c)	Realisation A/c	Dr.		2,500
	To X’s Capital A/c				2,500
	(5% commission allowed to Mr. X’s on sale of assets of  ` 50,000)
(d)()                           (e)	Realisation A/c	Dr.		10,000
	To Amrit’s Capital A/c				10,000
	(Amrit was allowed remuneration on account of realisation)
	Amrit’s Capital A/c	Dr.		15,000
	To Cash A/c				15,000
	(Realisation expenses paid on behalf of amrit)
	Alternatively, only one single entry can also be passed instead of above two entries.
	Realisation A/c	Dr.		10,000
	Amrit’s Capital A/c	Dr.		5,000
	To Cash A/c				15,000
	(Realisation expenses paid)
	Realization A/c                                            Dr.
	To Cash A/c
	(Paid provident fund)
(f)	Cash A/c	Dr.		3,600
	To Realisation A/c				3,600
	(60% of  the Bad debts against Z an old customer now recovered)
(g)	Cash A/c	Dr.		15,000
	To Realisation A/c				15,000
	(Investments are realised at 150%)
(h)	Realisation A/c			7,500
	To Krishna’s Capital A/c				7,500
	(Krishna, a partner, reimbursed for realization expenses)

 

Page No 8.48:

Question 8:

Pass necessary Journal entries for the following transactions on the dissolution of the firm P and Q after the various assets (other than cash)  and outside liabilities have been transferred to Realisation Account:
(a) Bank Loan  ` 12,000 was paid.
(b) Stock worth  ` 16,000 was taken over by partner Q.
(c) Partner P paid a creditor  ` 4,000.
(d) An asset not appearing in the books of accounts realised  ` 1,200.
(e) Expenses of realisation  ` 2,000 were paid by partner Q.
(f) Profit on realisation  ` 36,000 was distributed between P and Q in 5 : 4 ratio.

Answer:

	Journal
S.N.	Particulars		L.F.	Debits Amount  `	Credit Amount  `
(a)	Realisation A/c	Dr.		12,000
	To Bank A/c				12,000
	(Bank loan paid at the time of dissolution)
(b)	Q’s Capital A/c	Dr.		16,000
	To Realisation A/c				16,000
	(Stock taken over by Q)
(c)	Realisation A/c	Dr.		4,000
	To P’s Capital A/c				4,000
	(Creditors  paid by P)
(d)	Bank A/c	Dr.		1,200
	To Realisation A/c				1,200
	(Unrecorded assets realised)
(e)	Realisation A/c	Dr.		2,000
	To Q’s Capital A/c				2,000
	(Realisation expenses paid by Q)
(f)	Realisation A/c	Dr.		36,000
	To P’s Capital A/c				20,000
	To Q’s Capital A/c				16,000
	(Realisation Profit distributed )

 

 

 Click on Below link for more questions Of Volume-1 of 12th

Chapter-8: Dissolution of Partnership Firm | 2021-2022

From Question No. 1 to 4

From Question No. 5 to 8

From Question No. 9 to 12

From Question No. 13 to 16

From Question No. 17 to 20

From Question No. 21 to 24

From Question No. 25 to 28

From Question No. 29 to 32

From Question No. 33 to 36

From Question No. 37 to 40

From Question No. 41 to 44

From Question No. 45 to 48

Jump to chapter list of solution-2021-22

Jump to chapter list of solution-2020-21
Jump to chapter list of solution-2019-20