T.S. Grewal Class 12 Chapter 7 Q.26 - Dissolution of a Partnership Firm

Question 26

Bale and Yale, equal partners, decided to dissolve their partnership on 31st March, 2025. Their Balance Sheet showed Capitals – Bale ₹50,000, Yale ₹40,000; General Reserve ₹8,000, Bale’s Loan A/c ₹3,000, Creditors ₹14,000; Building ₹45,000, Machinery ₹15,000, Furniture ₹12,000, Debtors ₹8,000, Stock ₹24,000, Bank ₹11,000. (a) Assets realised: Stock ₹22,000; Debtors ₹7,500; Machinery ₹16,000; Building ₹35,000. (b) Yale took over the Furniture at ₹9,000. (c) Bale agreed to accept ₹2,500 in full settlement of his Loan Account. (d) Dissolution expenses amounted to ₹2,500. Prepare (i) the Realisation Account, (ii) Partners’ Capital Accounts, (iii) Bale’s Loan Account, (iv) Bank Account.

Solution

REALISATION ACCOUNT

Particulars	₹	Particulars	₹
To Building A/c	45,000	By Creditors A/c	14,000
To Machinery A/c	15,000	By Bank A/c:
To Furniture A/c	12,000	Stock 22,000
To Debtors A/c	8,000	Debtors 7,500
To Stock A/c	24,000	Machinery 16,000
To Bank A/c:		Building 35,000	80,500
Creditors 14,000		By Bale’s Loan A/c (discount on settlement)	500
Expenses 2,500	16,500	By Yale’s Capital A/c (Furniture taken over)	9,000
		By Loss transferred to:
		Bale’s Capital A/c 8,250
		Yale’s Capital A/c 8,250	16,500
Total	1,20,500	Total	1,20,500

PARTNERS’ CAPITAL ACCOUNTS

Particulars	Bale	Yale	Particulars	Bale	Yale
To Realisation A/c (Loss)	8,250	8,250	By Balance b/d	50,000	40,000
To Bank A/c	45,750	26,750	By General Reserve A/c	4,000	4,000
			By Realisation A/c (Furniture taken)	–	9,000
Total	54,000	44,000	Total	54,000	44,000

BALE’S LOAN ACCOUNT

Particulars	₹	Particulars	₹
To Bank A/c	2,500	By Balance b/d	3,000
To Realisation A/c	500
Total	3,000	Total	3,000

BANK ACCOUNT

Particulars	₹	Particulars	₹
To Balance b/d	11,000	By Bale’s Loan A/c	2,500
To Realisation A/c	80,500	By Realisation A/c	16,500
		By Bale’s Capital A/c	45,750
		By Yale’s Capital A/c	26,750
Total	91,500	Total	91,500