12th | Ts grewal 2021-2022 Question 9 to 12 | Dissolution of Partnership

Page No 8.48:

Question 9: The firm of Manjeet, Sujeet and Jagjeet was dissolved on 31st March, 2018. It was agreed that Sujeet will take care of the dissolution related activities and will get 10% of the value of assets realised. Sujeet agreed to bear the realisation expenses. Assets realised 10,00,750 and realisation expenses were 90,000, which were paid from the firm's cash. 4,50,000 were paid to the creditors in full settlement of their claim.

Pass necessary Journal entries for the above transactions in the books of the firm. (CBSE 2019)

 

Answer:         


 

 

Journal

S.N.

Particulars

L.F.

Debits

Amount

 `

Credit

Amount

 `

(a)

Bank A/c

Dr.

 

10,00,750

 

To Realisation A/c

 

 

10,00,750

(Being assets realized on dissolution)      

 

 

 

 

 

 

 

(b)

Realisation A/c

Dr.

 

1,00,075

 

To Sujeet’s Capital A/c

 

 

1,00,075

(Being 10% of assets realized on dissolution)

 

 

 

 

 

 

 

(c)

Sujeet’s Capital A/c

Dr.

 

90,000

 

To Bank A/c

 

 

90,000

(Being realization expenses paid)

 

 

 

 

 

 

 

(d)

Realisation A/c

Dr.

 

4,50,000

 

To Bank A/c

 

 

4,50,000

(Being creditors paid in full settlement on dissolution)

 

 

 

 

Page No 8.49:


Question 10:

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Page No 8.49:

Question 11:


Pass necessary Journal entries to record the following unrecorded assets and liabilities in the books of Paras and Priya:
(a) There was an old furniture in the firm which had been written off completely in the books. This was sold for  ` 3,000.
(b) Ashish, an old customer whose account for  ` 1,000 was written off as bad in the previous year, paid 60%, of the amount.
(c) Paras agreed to takeover the firm's goodwill (not recorded in the books of the firm), at a valuation of  ` 30,000.
(d) There was an old typewriter which had been written off completely from the books. It was estimated to realise  ` 400. It was taken by Priya at an estimated price less 25%.
(e) There were 100 shares of  ` 10 each in Star Limited acquired at a cost of  ` 2,000 which had been written-off completely from the books. These shares are valued @  ` 6 each and divided among the partners in their profit-sharing ratio.

Answer:

Journal

 

 

Particulars

L.F.

Amount

( `)

Amount

( `)

(a)

Cash/Bank A/c

Dr.

 

3,000

 

 

To Realisation A/c

 

 

 

3,000

 

(Being Old and unrecorded furniture sold)

 

 

 

 

 

 

 

 

(b)

Cash/Bank A/c

Dr.

 

600

 

 

To Realisation A/c

 

 

 

600

 

(Being Bad debts previously written off now recovered)

 

 

 

 

 

 

 

 

(c)

Paras’s Capital A/c

Dr.

 

30,000

 

 

To Realisation A/c

 

 

 

30,000

 

(Being Unrecorded goodwill taken over by Paras)

 

 

 

 

 

 

 

 

(d)

Priya’s Capital A/c

Dr.

 

300

 

 

To Realisation A/c

 

 

 

300

 

(Being Unrecorded Typewriter taken over by Priya at25% less price)

 

 

 

 

 

 

 

 

(e)

Paras’s Capital A/c

Dr.

 

300

 

 

Priya’s Capital A/c

Dr.

 

300

 

 

To Realisation A/c

 

 

 

600

 

(Being 100 unrecorded shares of  ` 10 each in the books taken @  ` 6 each by Paras and Priya and divided between them inprofit sharing ratio)

 

 

 

 

Page No 8.49:

Question 12:


Aman and Harsh were partners in a firm. They decided to dissolve their firm. Pass necessary Journal entries for the following after various assets (other than Cash and Bank) and third party liabilities have been transferred to Realisation Account:
(a) There was furniture worth  ` 50,000. Aman took over 50% of the furniture at 10% discount and the remaining furniture was sold at 30% profit on book value.
(b) Profit and Loss Account was showing a credit balance of  ` 15,000 on the date of dissolution.
(c) Harsh's loan of  ` 6,000 was discharged at  ` 6,200.
(d) The firm paid realisation expenses amounting to  ` 5,000 on behalf of Harsh who had to bear these expenses.
(e) There was a bill for 1,200 under discount. The bill was received from Soham who proved insolvent and a first and final dividend of 25% was received from his estate.
(f) Creditors  to whom the firm owed  ` 6,000, accepted stock of  ` 5,000 at a discount of 5% and the balance in cash.

Answer:

Journal

Date

Particulars

L.F.

Debit

Amount

( `)

Credit

Amount

( `)

 

 

 

 

 

 

a.

Aman’s Capital A/c

Dr.

 

22,500

 

 

Bank A/c

Dr.  

 

32,500

 

 

       To Realisation  A/c

 

 

 

55,000

 

(Being Assets realized)

 

 

 

 

 

 

 

 

 

 

b.

Profit & Loss A/c

Dr.

 

15,000

 

 

     To Aman’s Capital A/c

 

 

 

7,500

 

     To Harsh’s Capital A/c

 

 

 

7,500

 

(Being Profit distributed)

 

 

 

 

 

 

 

 

 

 

c.

Harsh’s Loan A/c

Dr.

 

6,000

 

 

Realisation  A/c

Dr.

 

200

 

 

    To Bank A/c

 

 

 

6,200

 

(Being Loan Discharged)

 

 

 

 

 

 

Dr.

 

5,000

 

d.

Harsh’s Capital A/c

 

 

 

5,000

 

       To Bank A/c

 

 

 

 

 

(Being Expenses paid on behalf of partner)

 

 

 

 

 

 

 

 

 

 

e.

Bank A/c

Dr.

 

300

 

 

    To Realisation  A/c

 

 

 

300

 

(Being Amount received)

 

 

 

 

 

 

 

 

 

 

 

Realisation  A/c

Dr.

 

1,200

 

 

    To Bank A/c

 

 

 

1,200

 

(Being Amount paid)

 

 

 

 

 

 

 

 

 

 

f.

Realisation  A/c

Dr.

 

1,250

 

 

    To Bank A/c

 

 

 

1,250

 

(Being Creditors  paid)

 

 

 

 

 

 

 

 

 

 

g.

Aman’s Capital A/c

Dr.

 

4,000

 

 

Harsh’s Capital A/c

Dr.

 

4,000

 

 

      To Realisation  A/c

 

 

 

8,000

 

(Being Loss on dissolution transferred to Partners Capital A/c)