NCERT Solutions

Give the journal entry(ies) to be recorded for the following, in case of the dissolution of a partnership firm.

Give the journal entry(ies) to be recorded for the following, in case of the dissolution of a partnership firm. 2. For closure of liabilities accounts.

Give the journal entry(ies) to be recorded for the following, in case of the dissolution of a partnership firm. 3. For sale of assets.

Give the journal entry(ies) to be recorded for the following, in case of the dissolution of a partnership firm. 4. For settlement of a creditor by transfer of fixed assets to him.

Give the journal entry(ies) to be recorded for the following, in case of the dissolution of a partnership firm. 5. For expenses of realisation when actual expenses are paid by the partner on behalf of the firm.

Give the journal entry(ies) to be recorded for the following, in case of the dissolution of a partnership firm. 6. When a partner discharges the liability of the firm.

Give the journal entry(ies) to be recorded for the following, in case of the dissolution of a partnership firm. 7. For payment of partner's loan.

Give the journal entry(ies) to be recorded for the following, in case of the dissolution of a partnership firm. 8. For settlement of capital accounts.

Explain the process dissolution of partnership firm?

What is a Realisation Account?

Reproduce the format of Realisation Account.

How deficiency of crditors is paid off at the time of dissolution of firm.

Journalise the following transactions regarding realisation expenses : [a] Realisation expenses amounted to Rs.2,500. [b] Realisation expenses amounting to Rs. 3,000 were paid by Ashok, one of the partners. [c] Realisation expenses Rs.2,300 borne by Tarun, personally. [d] Amit, a partner was appointed to realise the assets, at a cost of Rs.4,000. The actual amount of realisation expenses amounted to Rs.3,000.

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

There was an old computer which was written-off in the books of accounts in the pervious year. The same has been taken over by a partner Nitin for Rs.3,000. Journalise the transaction when the firm has been dissolved.

What journal entries will be recorded for the following transactions on the dissolution of a firm: [a] Payment of unrecorded liabilities of Rs.3,200. [b] Stock worth Rs.7,500 is taken over by a partner Rohit. [c] Profit on Realisation amounting to Rs. 18,000 is to be distributed between the partners Ashish and Tarun in the ratio of 5:7. [d] An unrecorded asset realised Rs.5,500.

Give journal entries for the following transactions :

How will you deal with the realisation expenses of the firm of Rashim and Bindiya in the following cases:

The book value of assets (other than cash and bank) transferred to Realisation Account is Rs. 1,00,000. 50% of the assets are taken over by a partner Atul, at a discount of 20%; 40% of the remaining assets are sold at a profit of 30% on cost; 5% of the balance being obsolete, realised nothing and remaining assets are handed over to a Creditor, in full settlement of his claim.

You are required to record the journal entries for realisation of assets.

Record necessary journal entries to realise the following unrecorded assets and liabilities in the books of Paras and Priya:

All partners wish to dissolve the firm. Yastin, a partner wants that her loan of Rs. 2,00,000 must be paid off before the payment of capitals to the partners. But, Amart, another partner wants that the capitals must be paid before the payment of Yastin's loan. You are required to settle the conflict giving reasons.

What journal entries would be recorded for the following transactions on the dissolution of a firm of Arti and Karim after various assets (other than cash) on the third party liabilities have been transferred to Reliasation account.

Rose and Lily shared profits in the ratio of 2:3. Their Balance Sheet on March 31, 2017 was as follows:

Rose and Lily decided to dissolve the firm on the above date. Assets (except bills receivables) realised Rs. 4,84,000. Creditors agreed to take Rs. 38,000. Cost of realisation was Rs. 2,400. There was a Motor Cycle in the firm which was bought out of the firm's money, was not shown in the books of the firm. It was now sold for Rs. 10,000. There was a contingent liability in respect of outstanding electric bill of Rs. 5,000 which was paid Bill Receivable taken over by Rose at Rs. 33,000.

Show Realisation Account, Partners Capital Acount, Loan Account and Cash Account.

Shilpa, Meena and Nanda decided to dissolve their partnership on March 31,2017 . Their profit sharing ratio was 3:2:1 and their Balance Sheet was as under:

The stock of value of Rs. 41,660 are taken over by Shilpa for Rs. 35,000 and she agreed to discharge bank loan. The remaining stock was sold at Rs. 14,000 and debtors amounting to Rs. 10,000 realised Rs. 8,000. land is sold for Rs. 1,10,000. The remaining debtors realised 50% at their book value. Cost of realisation amounted to Rs. 1,200. There was a typewriter not recorded in the books worth Rs. 6,000 which were taken over by one of the Creditors at this value. Prepare Realisation Account.

Surjit and Rahi were sharing profits (losses) in the ratio of 3:2, their Balance Sheet as on March 31, 2017 is as follows:

The firm was dissolved on March 31, 2017 on the following terms:

Rita, Geeta and Ashish were partners in a firm sharing profits/losses in the ratio of 3:2:1. On March 31, 2017 their balance sheet was as follows:

On the date of above mentioned date the firm was dissolved:

Anup and Sumit are equal partners in a firm. They decided to dissolve the parntership on March 31, 2017. When the balance sheet is as under:

The Assets were realised as follows: Lease hold land Rs 72,000 Furniture Rs 22,500 Stock Rs 40,500 Plant Rs 48,000 Sundry Debtors Rs 10,500

The Creditors were paid Rs. 25,500 in full settlement. Expenses of realisation amount to Rs. 2,500. Prepare Realisation Account, Bank Account, Partners Capital Accounts to close the books of the firm.

Ashu and Harish are partners sharing profit and losses as 3:2. They decided to dissolve the firm on March 31, 2017. Their balance sheet on the above date was:

Ashu is to take over the building at Rs. 95,000 and Machinery and Furniture is take over by Harish at value of Rs. 80,000. Ashu agreed to pay Creditor and Harish agreed to meet Bank overdraft. Stock and Investments are taken by both partner in profit sharing ratio. Debtors realised for Rs. 46,000, expenses of realisation amounted to Rs. 3,000. Prepare necessary ledger account.

Sanjay, Tarun and Vineet shared profit in the ratio of 3:2:1. On march 31, 2017 their balance sheet was as follows:

On this date the firm was dissolved. Sanjay was appointed to realise the assets. Sanjay was to receive 6% commission on the sale of assets (except cash) and was to bear all expenses of realisation. Sanjay realised the assets as follows : Plant Rs. 72,000, Debtors Rs. 54,000, Furniture Rs. 18,000, Stock 90% of the book value, Investments Rs. 76,000 and Bills receivable Rs.31,000. Expenses of realisation amounted to Rs.4,500. Prepare Realisation Account, Capital Accounts and Cash Account

Ashok, Babu and Chetan are in partnership sharing profit in the proportion of 1/2, 1/3, 1/6 respectively. They dissolve the partnership of the December 31, 2017, when the balance sheet of the firm as under:

The machinery was taken over by Babu for Rs. 45,000, Ashok took over the Investment for Rs.40,000 and Freehold property took over by Chetan at Rs.55,000. The remaining Assets realised as follows: Sundry Debtors Rs.56,500 and Stock Rs.36,500. Sundry Creditors were settled at discount of 7%. A Office computer, not shown in the books of accounts realised Rs.9,000. Realisation expenses amounted to Rs.3,000. Prepare Realisation Account, Partners Capital Account, Bank Account.

The following is the Balance sheet of Tanu and Manu, who shares profit and losses in the ratio of 5:3, On March 31, 2017:

On the above date the firm is dissolved and the following agreement was made: Tanu agree to pay the bank loan and took away the sundry debtors. Sundry creditors accepts stock and paid Rs.10,000 to the firm. Machinery is taken over by Manu for Rs.40,000 and agreed to pay of bills payable at a discount of 5%. Motor car was taken over by Tanu for Rs.60,000. Investment realised Rs.76,000 and fixtures Rs.4,000. The expenses of dissolution amounted to Rs.2,200. Prepare Realisation Account, Bank Account and Partners Capital Accounts.

State the difference between dissolution of partnership and dissolution of partnership firm.

State the accounting treatment at the time of dissolution of a firm for: i. Unrecorded assets ii. Unrecorded liabilities

Distinguish between firm's debts and partner's private debts.

State the order of settlement of accounts on dissolution.

On what account realisation account differs from revaluation account.

State giving reasons, which of the following statements are true or false:

State giving reasons, which of the following statements are true or false: 2. A partnership is dissolved when there is a death of a partner,

State giving reasons, which of the following statements are true or false: 3. A firm is dissolved when all partners give consent to it.

State giving reasons, which of the following statements are true or false: 4. A firm is compulsorily dissolved when a partner decide to retire.

State giving reasons, which of the following statements are true or false: 5. Dissolution of a firm necessarily involves dissolution of partnership.

State giving reasons, which of the following statements are true or false: 6. A firm is compulsorily dissolved when all partners or when all except one partner become involvent.

State giving reasons, which of the following statements are true or false: 7. Court can order a firm to be dissolved when a partner becomes insane.

State giving reasons, which of the following statements are true or false: 8. Dissolution of partnership can not take place without intervention of the court.

Fill in the Correct Word(s):

Fill in the Correct Word(s): 2. All _____ (internal/external) liabilities are transferred to the _____ (Debit/Credit) side of _____ acccount (Bank/Realisation).

Fill in the Correct Word(s): 3. Accumulated losses are transferred to _____ (Realisation/Capital Accounts) in _____ (equal ratio/profit sharing ratio).

Fill in the Correct Word(s): 4. If a liability is assumed by a partner, such Partner's Capital Account is _____ (debited/credited).

Fill in the Correct Word(s): 5. If a partner takes over an asset, such (Partner's Capital Account) is _____ (debited/credited).

Fill in the Correct Word(s): 6. No entry is required when a _____ (partner/creditor) accepts a fixed asset in full payment of his dues.

Fill in the Correct Word(s): 7. When creditor accepts an asset whose value is much more than the amount due to him, he will _____ (pay/not pay) the excess amount which will be credited to _____ Account.

Fill in the Correct Word(s): 8. When the firm has agreed to pay the partner a fixed amount for realisation work irrespective of the actual amount spent, such fixed amount is debited to _____ (Realisation/Capital) Account and Credited to _____ (Capital/Bank) Account.

Fill in the Correct Word(s): 9. Partner's loan is _____ (transfered/not transfered) in the (Realisation Account).

Fill in the Correct Word(s): 10. Partner's current accounts are transferred to respective _____ Partners' (Loan/Capital) Accounts.