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Dissolution of Firm

Hm hm theek h na isliye samjh nhi aaya tha toh usne bola ke liye he nikalne

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10 views

Dissolution of Firm

Hm hm theek h na isliye samjh nhi aaya tha toh usne bola ke liye he nikalne

Uploaded by

gg1388334
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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CLASS 12

ACCOUNTANCY
DISSOLUTION OF FIRM
Q1. Name the asset that is not transferred to the debit side of realisation account, but brings certain
amount of cash against its disposal at the time of dissolution of the firm.
Q2. When an asset is taken over by a partner, why is his capital account debited?
Q3. In case of dissolution of a firm, which liabilities are to be paid first?
Q4. Ashish and Kanav were partners in a firm sharing profits and losses in the ratio of 3 : 2. On
31st March, 2018 their balance sheet was as follows

On the above date, they decided to dissolve the firm.


(i) Ashish agreed to take over funriture at ₹ 38,000 and pay-off Mrs Ashish’s loan.
(ii) Debtors realised ₹ 18,500 and plant realised 10% more.
(iii) Kanav took over 40% of the stock at 20% less than the book value. Remaining stock was sold at a
gain of 10%.
(iv) Trade creditors took over investments in full settlement.
(v) 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.
Q5. Mala, Neela and Kala were partners sharing profits in the ratio of 3 : 2 : 1. On 1st March, 2015,
their firm was dissolved. The assets were realised and liabilities were paid-off. The accountant
prepared realisation account, partners’ capital account and cash account, but forgot to post few
amounts in these accounts.
You are required to complete these below given accounts by posting correct amounts.
CASH A/C

Q6. Bhuvan, Suraj and Ibrahim were partners in a firm sharing profits in the ratio of 3 : 2 : 1. On 30th
June, 2014, they decided to dissolve the firm. Following was the balance sheet of the firm on that
date.

The assets were realised and the liabilities were paid-off as follows
(i) Investments were taken over by Bhuvan for ₹ 18,000.
(ii) Stock was taken over by Suraj for ₹ 17,500 and furniture was taken over by Ibrahim at book
value.
(iii) ₹ 60,500 were realised from the debtors.
(iv) Creditors were settled in full and realisation expenses were ₹ 4,500.
Prepare realisation account, cash account and partners’ capital accounts.
Q7. Sanjay and Sameer were partners in a firm sharing profits in the ratio of 2 : 3. On 31st March,
2011, the balance sheet of the firm was as follows

The firm was dissolved on 1st April, 2011 and the assets and liabilities were settled as follows
(i) Sanjay agrees to take over land and building at ₹ 3,50,000 by paying cash.
(ii) Stock was sold for ₹ 90,000.
(iii) Creditors accepted debtors in full settlement of their claim.
Pass necessary journal entries for dissolution of the firm.
Q8. Srijan, Raman and Manan were partners in a firm sharing profits and losses in the ratio of 2 : 2 :
1. On 31st March, 2017 their balance sheet was as follows

On the above date, they decided to dissolve the firm.


(i) Srijan was appointed to realise the assets and discharge the liabilities. Srijan was to receive 5%
commission on sale of assets (except cash) and was to bear all expenses of realisation.
(ii) Assets were realised as follows
Plant – 85,000
Stock – 33,000
Debtors – 47,000
(iii) Investments were realised at 95% of the book value.
(iv) The firm had to pay ₹ 7,500 for an outstanding repair bill not provided for earlier.
(v) A contingent liability in respect of bills receivable, discounted with the bank had also materialised
and had to be discharged for ₹ 15,000.
(vi) Expenses of realisation amounting to ₹ 3,000 were paid by Srijan.
Prepare realisation account, partners’ capital accounts and bank account.
Q9. Kumar, Shyam and Ratan were partners in a firm sharing profits in the ratio of 5 : 3 : 2
respectively. They decided to dissolve the firm with effect from 1st April, 2013. On that date, the
balance sheet of the firm was as follows

The dissolution resulted in the following


(i) Plant of ₹ 40,000 was taken over by Kumar at an agreed value of? 45,000 and remaining plant
realised ₹ 50,000.
(ii) Furniture realised ₹ 40,000.
(iii) Motor van was taken over by Shyam for ₹ 30,000.
(iv) Debtors realised ₹ 1,000 less.
(v) Creditors for ₹ 20,000 were untraceable and the remaining creditors were paid in full.
(vi) Realisation expenses amounted to ₹ 5,000.
Prepare the realisation account, capital accounts of partners and bank account of the firm.

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