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✦ FREE LEARNING — CLASS 11 & 12 — CBSE · PSEB — ACCOUNTS · ECONOMICS · BST ✦
A, B and C were partners sharing profits and losses in the ratio of 2 : 2 : 1. Their Balance Sheet as at 31st March, 2018 showed Creditors ₹2,00,000, Capitals – A ₹7,50,000, B ₹3,00,000, C ₹2,50,000; Cash at Bank ₹3,00,000, Sundry Debtors ₹1,95,000 less Provision for Bad Debts ₹5,000, Stock ₹3,00,000, Fixed Assets ₹7,10,000. On the above date they dissolved the firm, and the following amounts were realised: Fixed Assets ₹6,75,000; Stock ₹3,39,000; Debtors ₹1,35,000; Creditors were paid ₹1,85,000 in full settlement of their claim. Expenses on realisation amounted to ₹19,000. Pass the necessary Journal entries on the dissolution of the firm. (CBSE 2019)
JOURNAL
| Date | Particulars | L.F. | Dr. (₹) | Cr. (₹) |
|---|---|---|---|---|
| Mar 31 | Realisation A/c Dr. | 12,05,000 | ||
| To Sundry Debtors A/c | 1,95,000 | |||
| To Stock A/c | 3,00,000 | |||
| To Fixed Assets A/c | 7,10,000 | |||
| (Assets transferred to Realisation Account) | ||||
| Mar 31 | Provision for Bad Debts A/c Dr. | 5,000 | ||
| Creditors A/c Dr. | 2,00,000 | |||
| To Realisation A/c | 2,05,000 | |||
| (Provision and liabilities transferred to Realisation Account) | ||||
| Mar 31 | Realisation A/c Dr. | 2,04,000 | ||
| To Bank A/c | 2,04,000 | |||
| (Creditors, ₹1,85,000, and realisation expenses, ₹19,000, paid) | ||||
| Mar 31 | Bank A/c Dr. | 11,49,000 | ||
| To Realisation A/c | 11,49,000 | |||
| (Fixed Assets, Stock and Debtors realised) | ||||
| Mar 31 | A’s Capital A/c Dr. | 22,000 | ||
| B’s Capital A/c Dr. | 22,000 | |||
| C’s Capital A/c Dr. | 11,000 | |||
| To Realisation A/c | 55,000 | |||
| (Loss on realisation transferred to Partners’ Capital Accounts in the ratio 2 : 2 : 1) | ||||
| Mar 31 | A’s Capital A/c Dr. | 7,28,000 | ||
| B’s Capital A/c Dr. | 2,78,000 | |||
| C’s Capital A/c Dr. | 2,39,000 | |||
| To Bank A/c | 12,45,000 | |||
| (Final balances of Capital Accounts paid to the partners) |
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.23 - 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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