Balbharati solutions for Book-keeping and Accountancy
12th Standard
HSC Maharashtra State Board
Chapter 6 –
Reconstitution of Partnership
(Dissolution Of Partner)
Practical problem | Q 1 | Page 244
Ganesh and Kartik are partners sharing Profits and Losses equally. They decided to
dissolve the firm on 31st March 2018. Their Balance Sheets was
as under :
Balance Sheets as on 31st March
2018.
|
Liabilities |
Amount ₹ |
Assets |
Amount ₹ |
|
Creditors |
18,400 |
Building |
88,000 |
|
Bills Payable |
5,600 |
Furniture |
12,000 |
|
Reserve Fund |
20,000 |
Debtors |
32,000 |
|
Capital A/c : |
Stock |
24,000 |
|
|
Ganesh |
40,000 |
Bills Receivable |
4,000 |
|
Kartik |
80,000 |
Cash |
4,000 |
|
1,64,000 |
1,64,000 |
Assets were realised as under :
Building ₹82,000, Debtors ₹ 22,000,
Stock ₹ 20,000. Bills Receivable ₹ 3,200 and Ganesh agreed
to take over Furniture for ₹10,000. Realisation Expenses amounted
to ₹ 2,000.
Show Realisation A/c, Partners’ Capital A/c and Cash A/c.
Video Solution:
In the books Firm…
Dr. Realisation
A/c Cr
|
Particulars |
Amount |
Amount |
Particulars |
Amount |
Amount |
|
To Sundry Assets Building Furniture Debtors Stock Bill receivable
To Cash A/c Realisation
Expenses Creditors Bills payable
|
88,000 12,000 32,000 24,000 4,000
2,000 18,400 5,600 |
1,60,000
26,000 |
By Sundry Liabilities Creditors Bills payable
By Cash A/c Building Debtors Stock Bill Receivable
By Ganesh’s Capital A/c (Furniture)
By Partner’s
Capital A/c Ganesh Kartik |
18,400 5,600
82,000 22,000 20,000 3,200
12,400 12,400 |
24,000
1,27,200
10,000
24,800 |
|
|
|
1,86,000 |
|
|
1,86,000 |
Dr. Partner’s
Capital A/c Cr.
|
Particulars |
Ganesh |
Kartik |
Particulars |
Ganesh |
Kartik |
|
To Furniture
To Realisation
A/c (Loss) To Cash A/c |
10,000
12,400 27,600 |
12,400 77,600 |
By Balance b/d By Reserve Fund |
40,000 10,000 |
80,000 10,000 |
|
|
50,000 |
90,000 |
|
50,000 |
90,000 |
Dr.
Cash A/c Cr.
|
Particulars |
Amount |
Particulars |
Amount |
|
To Balance b/d\ To Realisation A/c |
4,000 1,27,200 |
By Realisation A/c By Partner’s
Capital A/c Ganesh Kartik |
26,000
27,600 77,600 |
|
|
1,31,200 |
|
1,31,200 |
Practical problem | Q 2 | Page 244
Leela, Manda, and Kunda are partners in the firm ‘Janki Stores’ sharing Profits and Losses in the ratio of 3:2:1 respectively. On 31st March 2018, they decided to dissolve the firm when their Balance Sheet was as under.
Balance Sheets as on 31st March
2018.
|
Liabilities |
Amount ₹ |
Assets |
Amount ₹ |
|
Creditors |
28,800 |
Building |
1,02,000 |
|
Bills Payable |
21,600 |
Machinery |
73,000 |
|
Capital A/c’s |
Motor Car |
1,67,600 |
|
|
Leela |
2,27,160 |
Goodwill |
45,600 |
|
Manda |
1,44,000 |
Investment |
62,400 |
|
Kunda |
1,08,000 |
Debtors |
30,600 |
|
Stock |
45,000 |
||
|
Bank |
3,360 |
||
|
5,29,560 |
5,29,560 |
Leela agreed to take over the Building at ₹ 1,23,600.
Manda took over Goodwill, Stock, and Debtors at Book values and agreed
to pay Creditors and Bills payable.
Motor
Car and Machinery realised ₹ 1,51,080 and ₹ 31,680 respectively.
Investments
were taken by Kunda at an agreed value of ` 55,440.
Realisation
expenses amounted to ₹ 6,800.
Pass
necessary entries in the books of ‘Janki Stores.’
Solution: In the books of ‘Janki
Stores’
Journal
Entries
|
Date |
Particulars |
L/F |
Debit
(Rs.) |
Credit
(Rs.) |
|
2018 |
|
|
|
|
|
March |
|
|
|
|
|
31 |
Creditors
A/c ……Dr. Bills
Payable A/c …….Dr. To Realisation A/c (Being
sundry liabilities transferred to Realisation A/c) |
|
28,800 21,600 |
50,400 |
|
31 |
Realisation
A/c ….. Dr. To Sundry Assets A/c ((Being
sundry assets transferred to Realisation A/c) |
|
5,26,200 |
5,26,200 |
|
31 |
Leena’s
Capital A/c …….Dr. To Realisation A/c (Being
Building taken over by Leena) |
|
1,23,600 |
1,23,600 |
|
31 |
Manda’s
Capital A/c …….Dr. To Realisation A/c (Being
Goodwill, stock & Debtors taken over by Leena) |
|
1,21,200 |
1,21,200
|
|
31 |
Bank
A/c ……..Dr. To Realisation A/c (
Being amount received for assets sold) |
|
1,82,760 |
1,82,760 |
|
31 |
Kunda’s
A/c …….Dr. To Realisation A/c (Being
Investment take over by Kunda) |
|
55,440 |
55,440 |
|
31 |
Realisation
A/c ………. Dr. To Bank A/c (Being
Realisation expenses paid by Bank) |
|
6,800 |
6,800 |
|
31 |
Realisation
A/c …….
Dr. To Manda’s Capital A/c (Being
Sundry liabilities paid by Manda) |
|
50,400 |
50,400 |
|
31 |
Leena’s
Capital A/c ……..Dr. Manda’s
Capital A/c ……Dr. Kunda’s
Capital a/c …..Dr. To Realisation A/c (Being
Loss of Realisation transferred into partner Capital A/c) |
|
25,000 16,667 8,333 |
50,000 |
|
31 |
Leena’s
Capital A/c ……..Dr. Manda’s
Capital A/c ……Dr. Kunda’s
Capital a/c …..Dr. To BankA/c (Being
final settlement made) |
|
78,560 56,533 44,227 |
1,79320 |
Dr.
= 6,800 + 5,26,200 +
50,400 = 5,83,400
Cr.
= 50,400+ 1,23,600 + 1,21,200 + 1,82,760 + 55,440 = 5,33,400
Realiation
Loss A/c = 50000
Leela
= 50000 x 3/6 = 25,000
Manda
= 50000 x 2/6 = 16,666.66 = 16,667
Kunda
= 50000 x 1/6 = 8,333.333 = 8,333
Partner’s
Capital A/c
|
Particular |
Leela |
Manda |
Kunda |
Particular |
Leela |
Manda |
Kunda |
|
To Realisation
A/c To Realisation
A/c (Loss) T0 Bank A/c |
1,23,600
25,000 78,560 |
1,21,200
16,667 56,533 |
55,440
8,333 44,227 |
By Bal b/d By Realisation
A/c |
2,27,160 |
1,44,000
50,400 |
1,08,000 |
|
|
2,27,160 |
194,400 |
1,08,000 |
|
2,27,160 |
194,400 |
1,08,000 |
Practical problem | Q 3 | Page 245
Shailesh and Shashank were partners sharing Profits and Losses in the ratio of 3:2. Their Balance Sheet as on 31st March 2019 was as follows.
Balance Sheets as on 31st March 2019.
|
Liabilities |
Amount ₹ |
Assets |
Amount ₹ |
|
Capital Account : |
Building |
7000 |
|
|
Shailesh |
10,000 |
Plant |
9,000 |
|
Shashank |
6,000 |
Debtors |
14,000 |
|
Current Account : |
Stock |
5,000 |
|
|
Shailesh |
3,000 |
Bank |
6,000 |
|
Shashank |
2,000 |
||
|
Creditors |
17,400 |
||
|
Bills payable |
2,600 |
||
|
41,000 |
41,000 |
The firm was dissolved
on the above date and the assets realised as under.
1.
Plant ₹ 8,000, Building ₹ 6,000, Stock ₹ 4,000
and Debtors ₹ 12,000.
2. Shailesh
agreed to pay of the Bills Payable.
3. Creditors were
paid in full.
4. Dissolution
expenses were ₹ 1,400
Prepare Realisation
A/c, Partners Current A/c, Partners Capital A/c, and Bank A/c
Video Solution:
In the books Firm…
Dr. Realisation
A/c Cr
|
Particulars |
Amount |
Amount |
Particulars |
Amount |
Amount |
|
To Sundry Assets Building Plant Debtors Stock
To Shailesh’ Capital A/c (Bills Payable)
To Bank A/c Creditors Dissolution
expenses |
7,000 9,000 14,000 5,000
17,400
1,400 |
35,000
2,600
18,800 |
By Sundry Liabilities Creditors Bills payable
By Bank A/c Building Plant Debtors Stock
By Partner’s Current A/c Shailesh (3/5) Shashank (2/5) |
17,400 2,600
6,000 8,000 12,000 4,000
3,840 2,560 |
20,000
30,000
6,400 |
|
|
|
56,400 |
|
|
56,400 |
Dr. Partner’s
Current A/c Cr.
|
Particulars |
Shailesh |
Shashank |
Particulars |
Shailesh |
Shashank |
|
To Realisation A/c To Partner’s Capital A/c |
3,840
1,760 |
2,560 |
By Balance b/d By Bills payable By Partner’s Capital A/c |
3,000 2,600 |
2,000
560 |
|
|
5,600 |
2,560 |
|
5,600 |
2,560 |
Dr. Partner’s
Capital A/c Cr.
|
Particulars |
Shailesh |
Shashank |
Particulars |
Shailesh |
Shashank |
|
To Partner’s Current A/c To Bank A/c |
11,760 |
560 5,440 |
By Balance b/d By Partner’s Current A/c |
10,000
1,760 |
6,000 |
|
|
11,760 |
6,000 |
|
11,760 |
6,000 |
Dr.
Bank A/c Cr.
|
Particulars |
Amount |
Amount |
Particulars |
Amount |
Amount |
|
To Balance b/d To Realisation A/c |
|
6,000
30,000 |
By Realisation A/c By Partner’s Capital A/c Shailesh Shashank |
11,760 5,440 |
18,800
17,200 |
|
|
|
36,000 |
|
|
36,000 |
Practical problem | Q 4 | Page 245
Asha, Usha, and Nisha were partners sharing Profits and Losses in the ratio of 2:2:1. The following is the Balance Sheet as on 31st March 2019.
Balance Sheets as on 31st March
2019
|
Liabilities |
Amount ₹ |
Assets |
Amount ₹ |
|
|
Capital Accounts
: |
Machinery |
1,00,000 |
||
|
Asha |
1,20,000 |
Investment |
48,000 |
|
|
Usha |
40,000 |
Debtors |
1,10,000 |
|
|
Nisha |
40,000 |
Less: R. D. D. |
6,000 |
1,04,000 |
|
General Reserve |
12,000 |
Stock |
40,000 |
|
|
Creditors |
80,000 |
Profit and Loss
A/c |
36,000 |
|
|
Asha’s Loan A/c |
16,000 |
Bank |
8,000 |
|
|
Bills payable |
28,000 |
|||
|
3,36,000 |
3,36,000 |
On the above date,
the partners decided to dissolve the firm.
1. Assets were
realised as under Machinery ₹ 90,000, Stock ₹ 36,000,
Investment ₹ 42,000 and Debtors ₹ 90,000.
2. Dissolution
expenses were ₹ 6,000.
3. Goodwill of the firm
realised ₹ 48,000
Pass Journal
Entries to close the books of firm.
Solution: In the books of Firm
Journal Entries
|
Date |
Particulars |
L/F |
Debit
(Rs.) |
Credit
(Rs.) |
|
2019 |
|
|
|
|
|
March |
|
|
|
|
|
31 |
General
Reserve A/c ….. Dr. To Asha’s Capital A/c (2/5) To Usha’s Capital A/c (2/5) To Nisha’s Capital A/c (1/5) (Being
Transfer of General Reserve to Partners Capital A/c ) |
|
12,000 |
4,800 4,800 2,400 |
|
31 |
Creditors
A/c Dr. Asha’s
Loan A/c Dr. Bills
Payable A/c Dr. R.D.D.
A/c Dr. To Realisation A/c (Being
Liabilities & R.D.D. transferred into Realisation A/c ) |
|
80,000 16,000 28,000 6,000 |
1,30,000 |
|
31 |
Realisation
A/c Dr. To Machinery A/c To Investment A/c To Debtors A/c To Stock A/c (Being
Sundry Assets transferred into Realisation A/c) |
|
2,98,000 |
1,00,000 48,000 1,10,000 |
|
31 |
Asha’s
Capital A/c Dr. Usha’s
Capital A/c Dr. Nisha’s
Capital A/c Dr. To Profit and Loss A/c (Being
Profit / Loss A/c transferred into Partner’s Capital A/c ) |
|
14,400 14,400 7,200 |
36,000 |
|
31
31 |
Bank
A/c Dr. To Realisation A/c (Being
assets realised) Realisation
A/c Dr. To Bank A/c (Being
Liabilities paid off) |
|
3,06,000
1,30,000 |
3,06,000
1,30,000 |
|
31 |
Realisation
A/c Dr. To Asha’s Capital A/c To Usha’s Capital A/c To Nisha’s Capital A/c (Being
Realisation A/c (Profit) transferred into Partner’s Capital A/c ) |
|
8,000 |
3,200 3,200 1,600 |
|
31 |
Asha’Capital
A/c Dr. Usha’s
Capital A/c Dr. Nisha’s
Capital A/c Dr. To Bank A/c (Being
final settlement made) |
|
1,13,600 33,600 36,800 |
1,84,000 |
General Reserve
12,000
Asha / Usha =
12,000 x 2/5 = 2400 x 2 = 4,800
Nisha = 12,000 x
1/5 = 2,400
Liabilities : Dr. Assest: Cr. (To)
Profit & Loss A/c = 36,000
Asha / Usha =
36,000 x 2/5 = 2 x 7200 = 14400
Nisha = 36,000 x 1/5
= 7,200
Realisation A/c
Dr. = 1,30,000 + 3,06,000 = 4, 36,000
Cr. = 2,98,000 + 1,30,000 = 4,28,000
Realisation A/c (Profit) transferred
into Partner’s Capital A/c = 8,000
Asha/ Usha = 8,000 x 2/5 = 2 x 1600 = 3,200
Nisha = 8,000 x 1/5 = 1,600
DR. Partner’s Capital
A/c
|
Particular |
Asha |
Usha |
Nisha |
Particular |
Asha |
Usha |
Nisha |
|
To P/L A/c To Bank A/c |
14,400 1,13,600 |
14400 33,600 |
7,200 36,800 |
By Bal b/d By Gerenal Reserve By Realisation A/c (Profit) |
1,20000 4,800 3,200 |
40,000 4,800 3,200 |
40,000 2,400 1,600 |
|
|
128,000 |
48,000 |
44,000 |
|
128,000 |
48,000 |
44,000 |
Practical problem | Q 5 | Page 246
Seeta and Geeta are partners in the firm sharing Profits and Losses in the ratio of 4:1. They decided to dissolve the partnership on 31st March 2020 on which date their Balance Sheet stood as follows.
Balance Sheets as on 31st March
2020
|
Liabilities |
Amount ₹ |
Assets |
Amount ₹ |
|
|
Capital |
Furniture |
14,000 |
||
|
Seeta |
90,000 |
Plant |
65,000 |
|
|
Geeta |
40,000 |
Trademark |
8,000 |
|
|
Sundry Creditors |
35,000 |
Sundry Debtors |
48,000 |
|
|
Bank Loan |
15,000 |
Less - R. D. D |
3,000 |
45,000 |
|
Stock |
30,000 |
|||
|
Cash in hand |
10,000 |
|||
|
Advertisement
Suspense |
8,000 |
|||
|
1,80,000 |
1,80,000 |
Additional Information :
1. Plant and Stock
taken over by Seeta ₹ 78,000, and ₹ 22,000 respectively
2. Debtors Realised
90% of the Book Value and Trademark at ₹ 5,000. and Goodwill was
realised for ₹ 27,000.
3. Unrecorded assets estimated ₹4,500 was sold for ₹1,500.
4. ₹ 1,000 Discount were allowed
by creditors while paying their claim.
5. The Realisation Expenses amounted to ₹ 3,500
You are required to prepare Realisation A/c, Cash A/c, and Partners
Capital A/c
Video Solution:
In the books Firm…
Dr. Realisation
A/c Cr
|
Particulars |
Amount |
Amount |
Particulars |
Amount |
Amount |
|
To Sundry Assets Furniture Plant Trademark Debtors Stock
To Cash A/c Creditors (35,000-1000) Realisation Expenses Bills payable
To Partner’s Capital A/c Seeta (4/5) Geeta (1/5) |
14,000 65,000 8,000 48,000 30,000
34,000
3,500 15,000
9,760 2,440 |
1,65,000
52,500
12,200 |
By Sundry Liabilities Creditors Bills payable By R.D.D.
By Seeta’s Capital A/c Plant Stock
By Cash A/c Debtors Trademark Goodwill |
35,000 15,000
78,000 22,000
43,200 5,000 27,000 1,500 |
50,000 3,000
1,00,000
76,700 |
|
|
|
2,29,700 |
|
|
2,29,700 |
Dr. Partner’s
Capital A/c Cr.
|
Particulars |
Seeta |
Geeta |
Particulars |
Seeta |
Geeta |
|
To Advertisement
Suspense To Realisation
A/c (Assets) To Cash A/c |
6,400
1,00,000 |
1,600
40,840 |
By Balance b/d By Realisation A/c By Cash A/c
|
90,000 9,760
6,640 |
40,000 2,440 |
|
|
1,06,400 |
42,440 |
|
1,06,400 |
42,440 |
Dr.
Cash A/c Cr.
|
Particulars |
Amount |
Amount |
Particulars |
Amount |
Amount |
|
To Balance b/d To Realisation A/c To Seeta’s Capital A/c |
|
10,000 76,700
6,640 |
By Geeta’s Capital A/c By Realisation A/c
|
|
40,840
52,500 |
|
|
|
93,340 |
|
|
93,340 |
Debtors
Realised 90% of the Book Value = 48,000 x 90/100 = 43,200
Practical problem | Q 6 | Page 246
Sangeeta, Anita, and Smita were in partnership sharing Profits and Losses in the ratio 2:2:1. Their Balance Sheet as on 31st March 2019 was as under :
Balance Sheets as on 31st March
2019
|
Liabilities |
Amount ₹ |
Assets |
Amount ₹ |
|
Capital : |
Land |
2,10,000 |
|
|
Sangeeta |
60,000 |
Plant |
20,000 |
|
Anita |
40,000 |
Goodwill |
15,000 |
|
Smita |
30,000 |
Debtors |
1,25,000 |
|
Sandhya’s Loan A/c |
1,20,000 |
Loans and
Advances |
15,000 |
|
Sundry Creditors |
1,20,000 |
Bank |
5,000 |
|
Bills Payable |
20,000 |
||
|
3,90,000 |
3,90,000 |
They decided to dissolve the firm as follows :
1. Assets realised as; Land recovered ₹ 1,80,000; Goodwill
for ₹ 75,000; Loans and Advances realised ₹ 12,000; 10% of
the Debts proved bad;
2. Sangeeta took Plant at book value.
3. Creditors and Bills payable paid at 5% discount.
4. Sandhya’s Loan was discharged along with ₹ 6,000 as
Interest.
5. There was a contingent liability in respect of bills
of ₹ 1,00,000 which was under discount. Out of
them, a holder of one bill of ₹ 20,000 became insolvent
Show
Realisation Account, Partners Capital Account, and Bank Account.
Video Solution:
In the books Firm…
Dr. Realisation
A/c Cr
|
Particulars |
Amount |
Amount |
Particulars |
Amount |
Amount |
|
To Sundry Assets; Land Plant Goodwill Debtors Loans and Advances
To Bank A/c Sundry Creditors (1,20,000- 6,000) Bills Payable (20,000 – 1,000)
To Bank A/c Interest on
Sandhya’s Laon A/c
To Bank A/c contingent liability
|
2,10,000 20,000 15,000 1,25,000
15,000
1,14,000
19,000 |
385,000
1,33,000
6,000
20,000 |
By Sundry Liabilities Sundry Creditors Bills Payable
By Bank A/c Land Goodwill Loans and Advance Debtors (125,000-12500)
By Sangeeta’s
Capital A/c Plant
By Partner’s
Capital A/c Sangeeta (2/5) Anita (2/5) Smita (1/5)
|
1,20,000 20,000
1,80,000 75,000 12,000
1,12,500
1,800 1,800 900 |
1,40,000
3,79,500
20,000
4,500 |
|
|
|
5,44,000 |
|
|
5,44,000 |
Dr. Partner’s
Capital A/c Cr.
|
Particulars |
Sageeta |
Anita |
Smita |
Particulars |
Sangeeta |
Anita |
Smita |
|
To Plant To Realisation A/c (Loss)
To Bank A/c |
20,000
1,800
38,200 |
1,800
38,200 |
900
29,100 |
By Balance b/d |
60,000 |
40,000 |
30,000 |
|
|
60,000 |
40,000 |
30,000 |
|
60,000 |
40,000 |
30,000 |
Dr.
Bank A/c Cr.
|
Particulars |
Amount |
Amount |
Particulars |
Amount |
Amount |
|
To Balance b/d To Realisation A/c |
|
5,000 3,79,500
|
By Sandhya’s
Loan A/c By Interest on
Sandhya’s Laon A/c By Realisation A/c By contingent liability By Partner’s Capital A/c Sangeeta Anita Smita |
38,200 38,200 29,100 |
1,20,000
6,000 1,33,000
20,000
1,05,500 |
|
|
|
3,84,500 |
|
|
3,84,500 |
Practical problem | Q 7 | Page 247
Saiesh, Sumit, and Hemant were in partnership sharing Profits and Losses in the ratio 2:2:1. They decided to dissolve their partnership firm on 31st March 2019 and their Balance Sheet on that date stood as;
Balance Sheets as on 31st March
2019
|
Liabilities |
Amount ₹ |
|
Assets |
Amount ₹ |
|
Capital: |
|
Plant |
1,20,000 |
|
|
Saiesh |
90,000 |
|
Debtors |
45,000 |
|
Sumit |
60,000 |
|
Stock |
75,000 |
|
Hemant |
30,000 |
1,80,000 |
||
|
Loan |
|
12,000 |
||
|
Sundry Creditors |
|
9,000 |
||
|
Bank Overdraft |
|
39,000 |
||
|
|
2,40,000 |
2,40,000 |
It was agreed that;
1. Saiesh to discharge Loan and to take Debtors at book value.
2. Plant realised ₹ 1,35,000.
3. Stock realised ₹ 72,000.
4. Creditors were paid off at a discount of ₹ 45
Show Realisation A/c, Partners’ Capital A/c and Bank A/c
Solution:
In the books Firm…
Dr. Realisation
A/c Cr
|
Particulars |
Amount |
Amount |
Particulars |
Amount |
Amount |
|
To Sundry Assets Plant Debtors Stock
To Saiesha’s Capital A/c (Loan)
To Bank A/c Creditors (9000-45) To Partner’s Capital A/c Saiesha (2/5) Sumit (2/5) Hemant (1/5) |
1,20,000 45,000 75,000
4.818 4,818 2,409 |
2,40,000
12,000
8955
12,045 |
By Sundry Liabilities Loan Sundry Creditors
By Saiesha’s Capital A/c
(Debtors)
By Bank A/c Plant Stock |
12,000 9,000
1,35,000 72,000 |
21,000
45,000
2,07,000
|
|
|
|
2,73,000 |
|
|
2,73,000 |
Dr. Partner’s
Capital A/c Cr.
|
Particulars |
Seisha |
Sumit |
Hemant |
Particulars |
Seisha |
Sumit |
Hemant |
|
To Debtors
To Bank A/c |
45,000
61,818 |
64,818 |
32,409 |
By Balance b/d By Loan A/c By Realisation A/c (Profit) |
90,000
12,000
4,818 |
60,000
4,818 |
30,000
2,409 |
|
|
1.06,818 |
64,818 |
32,409 |
|
1.06,818 |
64,818 |
32,409 |
Dr.
Bank A/c Cr.
|
Particulars |
Amount |
Amount |
Particulars |
Amount |
Amount |
|
To Realisation A/c |
|
2,07,000 |
By Balance b/d (Bank overdraft)
By Realisation A/c (creditors) By Partner’s Capital A/c Saiesha Sumit Hemant |
61,818 64,818 32,409 |
39,000
8955
1,59,045 |
|
|
|
2,07,000 |
|
|
2,07,000 |
Practical problem | Q 8 | Page 248
Sitaram, Gangaram, and Rajaram are partners sharing Profits and Losses
in the ratio of 4:2:3.
(4/9, 2/9, 3/9) On. 1st April 2019 they agreed to dissolve the
partnership, their Balance Sheet was as follows :
Balance Sheets as on 31st March
2019
|
Liabilities |
Amount ₹ |
Assets |
Amount ₹ |
|
Capital: |
Building |
55,000 |
|
|
Sitaram |
65,000 |
Machinery |
25,000 |
|
Gangaram |
45,000 |
Furniture |
12,000 |
|
Rajaram |
7,000 |
Investment |
15,000 |
|
Reserve Fund |
18,000 |
Bills Receivable |
3,500 |
|
Profit and Loss
Account |
5,400 |
Sundry Debtors |
21,000 |
|
Loan from Tukaram |
10,000 |
Stock |
28,000 |
|
Sundry Creditors |
12,000 |
Cash in hand |
5,500 |
|
Bills Payable |
4,600 |
Cash at Bank |
2000 |
|
1,67,000 |
1,67,000 |
The assets realised: Building ₹ 46,750
Machinery ₹ 18,550 Furniture ₹ 9,600;
Investment ₹ 10,650 Bill Receivable and Debtors ₹ 20,750;
All the liabilities were paid off. The cost of realisation was ₹ 800.
Rajaram becomes bankrupt and ₹ 1,100 only was recovered from his
estate.
Show Realisation Account, Bank Account, and Capital Account of the
partners.
Solution:
In the books Firm…
Dr. Realisation
A/c Cr
|
Particulars |
Amount |
Amount |
Particulars |
Amount |
Amount |
|
To Sundry Assets Building Machinery Furniture Investment Bills Receivable Sundry Debtors Stock
To Bank A/c Loan from Tukaram Sundry Creditors Bills Payable Realisation Exp
|
55,000 25,000 12,000 15,000 3,500 21,000 28,000
10,000 12,000 4,600 800
|
1,59,500
27,400 |
By Sundry Liabilities Loan from Tukaram Sundry Creditors Bills Payable
By Bank A/c Building Machinery Furniture Investment Bills Receivable & Debtors
By Partner’s Capital A/c Sitaram (4/9) Gangaram (2/9) Rajaram (3/9) |
10,000 12,000 4,600
46,750 18,550 9,600 10,650
20,750
24,000 12,000 18,000 |
26,600
1,06,300
54,000 |
|
|
|
1,86,900 |
|
|
1,86,900 |
Dr. Partner’s
Capital A/c Cr.
|
Particulars |
Sitaram |
Gangaram |
Rajaram |
Particulars |
Sitaram |
Gangaram |
Rajaram |
|
To Realisation A/c (Loss)`
To Rajaram ‘s Capital A/c
To Bank A/c |
24,000
1,400
50,000 |
12,000
700
37,500 |
18,000 |
By Balance b/d
By Reserve
Fund
By Profit and
Loss Account
By Bank A/c By Sitaram’s Capital
A/c By Ganagram’s
Capital A/c |
65,000
8,000
2,400 |
45,000
4,000
1,200 |
7,000
6,000
1,800
1,100
1,400
700 |
|
|
75,400 |
50,200 |
18,000 |
|
75,400 |
50,200 |
18,000 |
Dr. Bank
A/c Cr.
|
Particulars |
Amount |
Amount |
Particulars |
Amount |
Amount |
|
To Balance b/d To Cash in hand To Realisation A/c (Assets)
To Rajaram’s Capital A/c |
|
2,000 5,500
1,06,300
1,100 |
By Realisation A/c (Liabilities) By Partner’s Capital A/c Sitaram Gangaram |
|
27,400
50,000 37,500 |
|
|
|
1,14,900 |
|
|
1,14,900 |
Capital Deficiency of Rajaram: = 2,100
Sitaram = 2100 x 4/6 = 2100 x 2/3 = 700 x 2 = 1400
Gangaram = 2100 x 2/6 = 2100 x
1/3 = 700
Reserve Fund = 18,000
Sitaram = 18,00 0 x 4/9 = 2000 x 4 = 8,000
Gangaram 18,000 x 2/9 = 2000 x 2 = 4,000
Rajaram = 18,000 x3/9 = 2000 x 3 = 6,000
Profit and Loss Account = 5,4000
Sitaram = 5,4000 x 4/9 = 6000 x 4 = 2,4000
Gangaram = 5,400 x 2/9 = 600 x 2 = 1,2000
Rajaram = 5,400 x 3/9 = 600 x 3 = 1,8000
Practical problem | Q 9 | Page 248
Following is the Balance Sheet of Vaibhav, Sanjay, and Santosh.
Balance Sheets as on 31st March
2019
|
Liabilities |
Amount ₹ |
Assets |
Amount ₹ |
|
Captital Accounts
: |
Machinery |
6,000 |
|
|
Vaibhav |
36,000 |
Goodwill |
9,000 |
|
Sanjay |
27,000 |
Stock and Debtors |
57,000 |
|
Creditors |
12,000 |
Profit and Loss
Account |
18,000 |
|
Bank Overdraft |
18,000 |
Santosh’s Capital |
3,000 |
|
93,000 |
93,000 |
Santosh is declared insolvent so firm is dissolved and assets realised
as follows:
1. Stock and Debtors ₹ 54,000, Goodwill - NIL, Machinery at
Book value.
2. Creditors allowed discount at 10%.
3. Santosh could pay only 25 paise in rupee (%) of the balance due.
4. Profit-sharing ratio was 8:4:3. (8/15, 4/15, 3/15)
5. A contingent liability against the firm ₹ 9,000 is cleared.
Give Ledger Account to close the books of the firm.
Solution:
In the books Firm…
Dr. Realisation
A/c Cr
|
Particulars |
Amount |
Amount |
Particulars |
Amount |
Amount |
|
To Sundry Assets Machinery Goodwill Stock & Debtors
To Bank A/c Creditors (12,000-1,200) contingent
liability |
6,000 9,000 57,000
10,800 9,000 |
72,000
19,800 |
By Sundry Liabilities Creditors
By Bank A/c Stock and
Debtors Machinery
By Partner’s
Capital A/c (Loss) Vaibhav (8/15) Sanjay (4/15) Santosh (3/15) |
54,000 6,000
10,560 5,280 3,960 |
12,000
60,000
19,800 |
|
|
|
91,800 |
|
|
91,800 |
Dr. Partner’s
Capital A/c Cr.
|
Particulars |
Vaibhav |
Sanjay |
Santosh |
Particulars |
Vaibhav |
Sanjay |
Santosh |
|
To Balance b/d
To Profit
and Loss Account
To Realisation A/c (Loss)
To Santosh’s Capital A/c
To Bank A/c
|
9,600
10,560
5,280
10,560 |
4,800
5,280
2,640
14,280 |
3,000
3,600
3,960 |
By Balance b/d
By Bank A/c
By Vaibhav’s Capital A/c
By Sanjay’s Capital A/c |
36,000 |
27,000 |
2,640
5,280
2,640 |
|
|
36,000 |
27,000 |
10,560 |
|
36,000 |
27,000 |
10,560 |
Dr.
Bank A/c Cr.
|
Particulars |
Amount |
Amount |
Particulars |
Amount |
Amount |
|
To Realisation A/c (Assets)
To Santosh’s Capital A/c |
|
60,000
2,640 |
By Balance b/d (Bank Overdraft)
By Realisation A/c
(Liabilities)
By Partner’s Capital A/c Vaibhav Sanjay |
|
18,000
19,800
10,560 14,280 |
|
|
|
62,640 |
|
|
62,640 |
W:N : 1 Profit and Loss Account = 18,000
Vaibhav = 18,000 x 8/15 = 1200 x 8 = 9,600
Sanjay = 18,000 x 4/15 = 1200 x 4 = 4,800
Santosh = 18,000 x 3/15 = 1200 x 3 = 3,600
W:N :2 Partner’s Capital A/c (Loss) = 19,800
Vaibhav = 19,800 x 8/15 = 1320 x 8 = 10,560
Sanjay = 19,800 x 4/15 = 1320 x4 = 5,280
Santosh = 19800 x 3/15 = 1320 x 3 = 3,960
W:N : 3 Santosh could pay only 25 paise in rupee (%) of the balance due.
= 10,560 x 25/100 = 2,640
W:N: 4 Capital Deficiency of Santosh
Vaibhav = 7920 x 8/12 = 7920 x 2/3 = 2640 x 2 = 5,280
Sanjay = 7920 x 4/12 = 7920 x 1/3 = 2,640
(When Two Partner Become Insolvent)
Practical problem | Q 10 | Page 249
Shweta, Nupur, and Sanika are partners sharing Profits and Losses in the ratio of 3:2:1. Their Balance Sheet as on 31st March 2019 was as follows:
Balance Sheets as on 31st March
2019.
|
Liabilities |
Amount ₹ |
Assets |
Amount ₹ |
|
Capital A/c |
Sundry Assets |
1,60,000 |
|
|
Shweta |
65,000 |
Cash at Bank |
5,000 |
|
Nupur |
15,000 |
Capital A/c:
Sanika |
10,000 |
|
Sundry Creditors |
95,000 |
||
|
1,75,000 |
1,75,000 |
The firm is dissolved as on 31st March 2019. Sundry
Assets realised @ 60% of its book value. Realisation expenses ₹ 2000
paid by Shweta. Nupur, and Sanika both are insolvent. Nupur’s private
estate has got a surplus of ₹3,000 and that of Sanika ₹ 8,000.
Show necessary ledger accounts to close the books of the firm.
Solution:
In the books Firm…
Dr. Realisation
A/c Cr
|
Particulars |
Amount |
Amount |
Particulars |
Amount |
Amount |
|
To Sundry
Assets
To Shweta’s
Capital A/c Realisation
expenses
To Sundry
Creditors
|
|
1,60,000
2,000
95,000 |
By Sundry
Creditors
By Bank A/c Sundry Assets @
60% x 1,60,000
By Partner’s Capital
A/c Shweta (3/6) Nupur (2/6) Sanika (1/6) |
33,000 22,000 11,000 |
95,000
96,000
66,000 |
|
|
|
2,57,000 |
|
|
2,57,000 |
Dr. Partner’s
Capital A/c Cr.
|
Particulars |
Shweta |
Nupur |
Sanika |
Particulars |
Shweta |
Nupur |
Sanika |
|
To Balance b/d
To Realisation A/c (Loss)
To Sanika’s Capital A/c
To Nupur’s Capital A/c To Bank A/c |
33,000
13,000
4,000 17,000 |
22,000 |
10,000
11,000
|
By Balance b/d
By Realisation
expenses
By Bank A/c By Shweta’s Capital
A/c |
65,000
2,000 |
15,000
3,000 4,000 |
8,000 13,000 |
|
|
67,000 |
22,000 |
21,000 |
|
67,000 |
22,000 |
21,000 |
Dr.
Bank A/c Cr.
|
Particulars |
Amount |
Amount |
Particulars |
Amount |
Amount |
|
To Balance b/d To Realisation A/c (Assets) To Partner’s Capital A/c Nupur Sanika |
3,000 8,000 |
5,000
96,000
11,000 |
By Shweta’s Capital A/c
By Sundry
Creditors |
|
17,000
95,000 |
|
|
|
1,12,000 |
|
|
1,12,000 |
Practical problem | Q 11 | Page 249
Following is the Balance Sheet as on 31st March 2019 of
a firm having Three equal partners Priti, Priya, and Prachi.
Balance Sheets as on 31st March
2019
|
Liabilities |
Amount ₹ |
Assets |
Amount ₹ |
|
Capital |
Machinery |
23,000 |
|
|
Priti |
40,000 |
Furniture |
16,000 |
|
Priya |
35,000 |
Stock |
47,000 |
|
Prachi |
25,000 |
Cash at Bank |
10,000 |
|
Trade Creditors |
50,000 |
Profit and Loss
Account |
84,000 |
|
Loan (secured by
Machinery) |
30,000 |
||
|
1,80,000 |
1,80,000 |
The firm was dissolved due to insolvency of all the partners. Machinery
was sold for ₹ 18,000, while Furniture fetched ₹ 14,000,
Stock realised ₹ 35,000. Realisation expenses amounted
to ₹ 2,000. Nothing could be recovered from Priya and Prachi,
but ₹ 3,400 could be collected from Priti’s private estate.
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