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✦ FREE LEARNING — CLASS 11 & 12 — CBSE · PSEB — ACCOUNTS · ECONOMICS · BST ✦
Pass the necessary Journal entries for the following transactions on the dissolution of the partnership firm of Kavita and Suman on 31st March, 2022, after the various assets (other than cash) and third-party liabilities have been transferred to the Realisation Account. (a) Kavita took over stock amounting to ₹1,00,000 at ₹90,000. (b) Creditors of ₹2,00,000 took over Plant and Machinery of ₹3,00,000 in full settlement of their claim. (c) There was an unrecorded asset of ₹23,000 which was taken over by Suman at ₹17,000. (d) Realisation expenses of ₹2,000 were paid by Kavita. (e) Bank Loan of ₹21,000 was paid off. (f) Loss on dissolution amounted to ₹7,000. (CBSE 2023)
JOURNAL
| Date | Particulars | L.F. | Dr. (₹) | Cr. (₹) |
|---|---|---|---|---|
| (a) | ||||
| Kavita’s Capital A/c Dr. | 90,000 | |||
| To Realisation A/c | 90,000 | |||
| (Stock taken over by Kavita at the agreed value) | ||||
| (b) No entry — both Plant and Machinery and the Creditors are already in the Realisation Account | ||||
| (c) | ||||
| Suman’s Capital A/c Dr. | 17,000 | |||
| To Realisation A/c | 17,000 | |||
| (Unrecorded asset taken over by Suman at the agreed value) | ||||
| (d) | ||||
| Realisation A/c Dr. | 2,000 | |||
| To Kavita’s Capital A/c | 2,000 | |||
| (Realisation expenses paid by Kavita) | ||||
| (e) | ||||
| Realisation A/c Dr. | 21,000 | |||
| To Bank A/c | 21,000 | |||
| (Bank Loan paid off) | ||||
| (f) | ||||
| Kavita’s Capital A/c Dr. | 3,500 | |||
| Suman’s Capital A/c Dr. | 3,500 | |||
| To Realisation A/c | 7,000 | |||
| (Loss on dissolution distributed equally, no other ratio being specified) | ||||
Accounting & Commerce Educator
Sarbjit Singh holds a B.Com and M.Com degree and has over 12 years of teaching experience in double entry bookkeeping, financial accounting, and business studies.
This guide covers "T.S. Grewal Class 12 Chapter 7 Q.11 - Dissolution of a Partnership Firm", focusing on key definitions, step-by-step concepts, applications, and revision guidelines relevant to Chapter 7 - Dissolution of a Partnership Firm.
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