CBSE Class 12 Accountancy HOTs Dissolution Of Partnership Firm Set C
1. You are given the following particulars
Furniture of book value of Rs. 10,000
Loss on sale - Rs. 2,000
If it had been taken over by Anil, a partner what would
have been the journal entry on
(a) Dissolution (b) On reconstitution
Journal entry
Ans.(a) Anils capital a/c Dr. 8,000
Realisation a/c 8,000
(b) Anils capital a/c Dr. 8,000
Revaluation a/c Dr. 2,000
Furniture a/c 10,000
2. Complete the series
(a) Sacrificing ratio : admission
Gaining ratio : ?
(b) Dissolution : Realisation a/c
Reconstitution : ?
(c) Trading a/c : Profit and loss a/c
Profit & loss a/c : ?
(d) Balance of capital a/c : Balance sheet Balance of profit and loss appropriation a/c:?
Ans.(a) Retirement (b) Revaluation a/c
(c) Profit and loss appropriation a/c
(d) Capital accounts
Q.3. Boby, Jestin and Sudheer are in partnership in the ratio of 3:2:3. They have decided to dissolve the firm.
On the date of dissolution total creditors were Rs. 16,000; Bills discounted Rs. 2,650 during the year, has become a real liability which has to be paid, though this has not been recorded anywhere in the books of accounts. Their capital account balances were Boby Rs. 12,000; Jestin Rs. 10,000; Sudheer Rs. 8,000 respectively. Boby advance Rs. 14,000 besides his capital account.
Find out: (a) Total Sundry Assets
(b) Realisation a/c
(c) Capital accounts of partners.
(a) Value of asset
Asset = Capital + Liability
= 12000 + 10000 + 8000 + 14000 + 16000
= Rs. 60,000
4. Should you pass any entry for the payment of creditors worth Rs. 5,000 on dissolution, if they accept stock of the same value? If yes, what is the journal entry?
Ans: No journal entry will be passed as they have accepted stock of same value.
5. What entry would you pass for the following transactions on the dissolution of a firm having partners Vishal and Rakesh.
(i) An unrecorded asset realised Rs. 6,200
(ii) Dissolution expenses amounted to Rs. 3,200
(iii) Creditors already transferred to realisation account were paid Rs. 88,000
(iv) Stock worth Rs. 5,400 already transferred to realisation account was sold for Rs. 4,100
(v) Profit on realisation Rs. 48,000 to be distributed between partners, Vishal and Rakesh? Passing Journal Entries
(i) Cash a/c Dr. 6,200
Realisation a/c 6,200
(ii) Realisation a/c Dr. 3,200
Cash 3,200
(iii) Realisation a/c Dr. 88,000
Cash 88,000
(iv) Cash a/c Dr. 4,100
Realisation a/c 4,100
(v)Realisation a/c Dr. 48,000
Vishal capital a/c 24,000
Rakesh capital a/c 24,000
Q.6. Richard and Gere, partners of Sun Chemicals decided to dissolve the firm. You are required to pass journal entries for the following transactions at the time of dissolution.
(i) Expenses of dissolution amounted to Rs. 500, paid by Mr. Richard.
(ii) Stock worth Rs. 3,000 which was already transferred to realisation account was taken over by Mr. Richard.
(iii) Profit on realisation Rs. 6,000 has to be distributed to Mr. Richard and Gere in the ratio 2:1.
Journal entry
(i) Realisation a/c Dr. 500
Richards capital a/c 500
(ii) Richards capital a/c Dr. 3,000
Realisation a/c 3,000
(iii) Realisation a/c Dr. 6,000
Richards capital a/c 4,000
Geres capital a/c 2,000
Q.7. Toya and Soya are partners sharing profits and losses equally. They decided to dissolve the firm on 15th March, 2005 which resulted in a loss of Rs. 30,000. The capital accounts of Toya and Soya was Rs. 20,000 and Rs. 30,000 respectively. The cash account showed a balance of Rs. 20,000.
You are required to pass journal entries for
(i) Transfer of loss to the capital account of partners
(ii) Making final payments to the partners.
Ans.(i) Journal entry for transfer of loss
Toyas capital a/c Dr. 15,000
Soyas capital a/c Dr. 15,000
Realisation a/c 30,000
(ii) Journal entry for final payment of partners
Toyas capital a/c Dr. 5,000
Soyas capital a/c Dr. 15,000
Cash a/c 20,000