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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 Tina and Rina, sharing profits in the ratio of 3 : 2, after the various assets (other than cash and bank) and external liabilities have been transferred to the Realisation Account: (i) There was an outstanding bill for repairs, for which ₹20,000 were paid. (ii) The firm had stock of ₹80,000. Tina took over 50% of the stock at a discount of 20%, while the remaining stock was sold off for ₹52,000. (iii) The firm had 100 shares of ₹10 each, which were taken over by the partners at the market value of ₹20 per share in their profit-sharing ratio of 3 : 2. (iv) Realisation expenses of ₹4,000 were paid by Rina. (v) Tina had given a loan of ₹40,000 to the firm, which was duly paid. (vi) Rina agreed to pay off her husband’s loan of ₹10,000 at a discount of 10%. (CBSE 2024)
JOURNAL
| Date | Particulars | L.F. | Dr. (₹) | Cr. (₹) |
|---|---|---|---|---|
| (i) | ||||
| Realisation A/c Dr. | 20,000 | |||
| To Bank A/c | 20,000 | |||
| (Outstanding bill for repairs paid) | ||||
| (ii) | ||||
| Tina’s Capital A/c Dr. | 32,000 | |||
| Bank A/c Dr. | 52,000 | |||
| To Realisation A/c | 84,000 | |||
| (Tina took over 50% of the stock, ₹40,000, at a 20% discount = ₹32,000; the remaining stock sold for ₹52,000) | ||||
| (iii) | ||||
| Tina’s Capital A/c Dr. | 1,200 | |||
| Rina’s Capital A/c Dr. | 800 | |||
| To Realisation A/c | 2,000 | |||
| (100 shares taken over by the partners at market value ₹20 each = ₹2,000, in their profit-sharing ratio 3 : 2) | ||||
| (iv) | ||||
| Realisation A/c Dr. | 4,000 | |||
| To Rina’s Capital A/c | 4,000 | |||
| (Realisation expenses paid by Rina) | ||||
| (v) | ||||
| Loan by Tina A/c Dr. | 40,000 | |||
| To Bank A/c | 40,000 | |||
| (Tina’s loan to the firm repaid) | ||||
| (vi) | ||||
| Realisation A/c Dr. | 9,000 | |||
| To Rina’s Capital A/c | 9,000 | |||
| (Rina discharged her husband’s loan of ₹10,000 at a 10% discount, i.e. paid ₹9,000, on the firm’s behalf) | ||||
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.17 - 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.
It is primarily curated for Class 11 and Class 12 high school commerce, accounting, and economics students, as well as aspirants preparing for board exams or CA Foundation.
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