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✦ FREE LEARNING — CLASS 11 & 12 — CBSE · PSEB — ACCOUNTS · ECONOMICS · BST ✦
A and B are partners sharing profits and losses in the ratio of 3 : 2. On 31st March, 2025, their Balance Sheet showed Creditors ₹38,000, Mrs. A’s Loan ₹10,000, B’s Loan ₹15,000, Reserve ₹5,000, Capitals – A ₹10,000, B ₹8,000; Cash at Bank ₹11,500, Stock ₹6,000, Debtors ₹19,000, Furniture ₹4,000, Plant ₹28,000, Investments ₹10,000, Profit and Loss A/c (Dr.) ₹7,500. The firm was dissolved, and both partners agreed: (a) A took Investments at an agreed value of ₹8,000 and agreed to settle Mrs. A’s Loan. (b) Other assets realised: Stock ₹5,000; Debtors ₹18,500; Furniture ₹4,500; Plant ₹25,000. (c) Expenses of realisation came to ₹1,600. (d) Creditors agreed to accept ₹37,000 in full settlement. Prepare the Realisation Account, Partners’ Capital Accounts and Bank Account.
REALISATION ACCOUNT
| Particulars | ₹ | Particulars | ₹ |
|---|---|---|---|
| To Stock A/c | 6,000 | By Creditors A/c | 38,000 |
| To Debtors A/c | 19,000 | By Mrs. A’s Loan A/c | 10,000 |
| To Furniture A/c | 4,000 | By A’s Capital A/c (Investments taken over) | 8,000 |
| To Plant A/c | 28,000 | By Bank A/c: | |
| To Investments A/c | 10,000 | Stock 5,000 | |
| To A’s Capital A/c (Mrs. A’s Loan taken over) | 10,000 | Debtors 18,500 | |
| To Bank A/c: | Furniture 4,500 | ||
| Expenses 1,600 | Plant 25,000 | 53,000 | |
| Creditors 37,000 | 38,600 | By Loss transferred to: | |
| A’s Capital A/c 3,960 | |||
| B’s Capital A/c 2,640 | 6,600 | ||
| Total | 1,15,600 | Total | 1,15,600 |
PARTNERS’ CAPITAL ACCOUNTS
| Particulars | A | B | Particulars | A | B |
|---|---|---|---|---|---|
| To Realisation A/c (Loss) | 3,960 | 2,640 | By Balance b/d | 10,000 | 8,000 |
| To Realisation A/c (Investments) | 8,000 | – | By Reserve A/c | 3,000 | 2,000 |
| To Profit and Loss A/c | 4,500 | 3,000 | By Realisation A/c (Mrs. A’s Loan taken over) | 10,000 | – |
| To Bank A/c | 6,540 | 4,360 | |||
| Total | 23,000 | 10,000 | Total | 23,000 | 10,000 |
B’S LOAN ACCOUNT
| Particulars | ₹ | Particulars | ₹ |
|---|---|---|---|
| To Bank A/c | 15,000 | By Balance b/d | 15,000 |
BANK ACCOUNT
| Particulars | ₹ | Particulars | ₹ |
|---|---|---|---|
| To Balance b/d | 11,500 | By Realisation A/c | 38,600 |
| To Realisation A/c | 53,000 | By A’s Capital A/c | 6,540 |
| By B’s Capital A/c | 4,360 | ||
| By B’s Loan A/c | 15,000 | ||
| Total | 64,500 | Total | 64,500 |
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.28 - 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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