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✦ FREE LEARNING — CLASS 11 & 12 — CBSE · PSEB — ACCOUNTS · ECONOMICS · BST ✦
Shilpa, Meena and Nanda decided to dissolve their partnership on 31st March, 2025. Their profit-sharing ratio was 3 : 2 : 1. Their Balance Sheet showed Capitals – Shilpa ₹80,000, Meena ₹40,000; Bank Loan ₹20,000; Nanda’s Capital (Dr., i.e. she owed the firm) ₹23,000; Creditors ₹37,000; Provision for Doubtful Debts ₹1,200; General Reserve ₹12,000; Land ₹81,000, Stock ₹56,760, Debtors ₹18,600, Cash ₹10,840. It was agreed: Stock of value ₹41,660 was taken over by Shilpa for ₹35,000, and she agreed to discharge the Bank Loan. The remaining stock was sold at ₹14,000, and Debtors amounting to ₹10,000 realised ₹8,000. Land was sold for ₹1,10,000. The remaining Debtors realised 50% of their book value. Cost of realisation amounted to ₹1,200. There was a typewriter not recorded in the books, worth ₹6,000, which was taken over by one of the Creditors at this value. Prepare the Realisation Account, Partners’ Capital Accounts, and Cash Account.
REALISATION ACCOUNT
| Particulars | ₹ | Particulars | ₹ |
|---|---|---|---|
| To Land A/c | 81,000 | By Bank Loan A/c | 20,000 |
| To Stock A/c | 56,760 | By Creditors A/c | 37,000 |
| To Debtors A/c | 18,600 | By Provision for Doubtful Debts A/c | 1,200 |
| To Shilpa’s Capital A/c (Bank Loan taken over) | 20,000 | By Shilpa’s Capital A/c (Stock taken over) | 35,000 |
| To Cash A/c (Creditors, net of typewriter settlement) | 31,000 | By Cash A/c: | |
| To Cash A/c (Expenses) | 1,200 | Stock 14,000 | |
| Debtors 12,300 | |||
| Land 1,10,000 | 1,36,300 | ||
| By Profit transferred to: | |||
| Shilpa’s Capital A/c 10,470 | |||
| Meena’s Capital A/c 6,980 | |||
| Nanda’s Capital A/c 3,490 | 20,940 | ||
| Total | 2,29,500 | Total | 2,29,500 |
PARTNERS’ CAPITAL ACCOUNTS
| Particulars | Shilpa | Meena | Nanda | Particulars | Shilpa | Meena | Nanda |
|---|---|---|---|---|---|---|---|
| To Realisation A/c (Stock taken) | 35,000 | – | – | By Balance b/d | 80,000 | 40,000 | – |
| To Balance b/d | – | – | 23,000 | By General Reserve A/c | 6,000 | 4,000 | 2,000 |
| By Realisation A/c (Bank Loan taken over) | 20,000 | – | – | ||||
| To Cash A/c | 81,470 | 50,980 | – | By Realisation A/c (Profit) | 10,470 | 6,980 | 3,490 |
| By Cash A/c | – | – | 17,510 | ||||
| Total | 1,16,470 | 50,980 | 23,000 | Total | 1,16,470 | 50,980 | 23,000 |
CASH ACCOUNT
| Particulars | ₹ | Particulars | ₹ |
|---|---|---|---|
| To Balance b/d | 10,840 | By Realisation A/c (Creditors and Expenses) | 32,200 |
| To Realisation A/c (Assets realised) | 1,36,300 | By Shilpa’s Capital A/c | 81,470 |
| To Nanda’s Capital A/c | 17,510 | By Meena’s Capital A/c | 50,980 |
| Total | 1,64,650 | Total | 1,64,650 |
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.27 - 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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