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✦ FREE LEARNING — CLASS 11 & 12 — CBSE · PSEB — ACCOUNTS · ECONOMICS · BST ✦
A, B and C were equal partners. On 31st March, 2025, their Balance Sheet showed Creditors ₹50,400, Reserve ₹12,000, Capitals – A ₹40,000, B ₹25,000, C ₹15,000; Cash ₹3,700, Stock ₹20,100, Debtors ₹62,600, Loan to A ₹10,000, Investments ₹16,000, Furniture ₹6,500, Building ₹23,500. The firm was dissolved: (a) Investments were valued at ₹18,000 for dissolution purposes, and A took over the Investments at this value. (b) Fixed Assets realised ₹29,700, whereas Stock and Debtors realised ₹80,000. (c) Expenses of realisation amounted to ₹1,300. (d) Creditors allowed a discount of ₹800. (e) One Bill Receivable for ₹1,500 under discount was dishonoured, as the acceptor had become insolvent and was unable to pay anything, so the bill had to be met by the firm. Prepare the Realisation Account, Partners’ Capital Accounts and Cash Account.
REALISATION ACCOUNT
| Particulars | ₹ | Particulars | ₹ |
|---|---|---|---|
| To Stock A/c | 20,100 | By Creditors A/c | 50,400 |
| To Debtors A/c | 62,600 | By A’s Capital A/c (Investments taken over) | 18,000 |
| To Investments A/c | 16,000 | By Cash A/c: | |
| To Furniture A/c | 6,500 | Furniture and Building 29,700 | |
| To Building A/c | 23,500 | Stock and Debtors 80,000 | 1,09,700 |
| To Cash A/c: | By Loss transferred to: | ||
| Creditors 49,600 | A’s Capital A/c 1,000 | ||
| Expenses 1,300 | B’s Capital A/c 1,000 | ||
| Bills 1,500 | 52,400 | C’s Capital A/c 1,000 | 3,000 |
| Total | 1,81,100 | Total | 1,81,100 |
PARTNERS’ CAPITAL ACCOUNTS
| Particulars | A | B | C | Particulars | A | B | C |
|---|---|---|---|---|---|---|---|
| To Realisation A/c (Investments) | 18,000 | – | – | By Balance b/d | 40,000 | 25,000 | 15,000 |
| To Realisation A/c (Loss) | 1,000 | 1,000 | 1,000 | By Reserve A/c | 4,000 | 4,000 | 4,000 |
| To Cash A/c | 25,000 | 28,000 | 18,000 | ||||
| Total | 44,000 | 29,000 | 19,000 | Total | 44,000 | 29,000 | 19,000 |
A’S LOAN ACCOUNT
| Particulars | ₹ | Particulars | ₹ |
|---|---|---|---|
| To Balance b/d | 10,000 | By Cash A/c | 10,000 |
CASH ACCOUNT
| Particulars | ₹ | Particulars | ₹ |
|---|---|---|---|
| To Balance b/d | 3,700 | By Realisation A/c | 52,400 |
| To Realisation A/c | 1,09,700 | By A’s Capital A/c | 25,000 |
| To A’s Loan A/c | 10,000 | By B’s Capital A/c | 28,000 |
| By C’s Capital A/c | 18,000 | ||
| Total | 1,23,400 | Total | 1,23,400 |
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.31 - 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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