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✦ FREE LEARNING — CLASS 11 & 12 — CBSE · PSEB — ACCOUNTS · ECONOMICS · BST ✦
Yogesh and Naresh were partners sharing profits equally. They dissolved the firm on 1st April, 2025. Naresh was assigned responsibility for realising the assets and paying the liabilities, at a remuneration of ₹10,000 including expenses. Their Balance Sheet showed Creditors ₹40,000, Bills Payable ₹40,000, Naresh’s Loan ₹44,000, Mrs. Yogesh’s Loan ₹42,000, Investment Fluctuation Reserve ₹8,000, Capitals – Yogesh ₹21,000, Naresh ₹21,000; Cash/Bank ₹6,000, Investments ₹30,000, Debtors ₹40,000 less Provision ₹4,000, Bills Receivable ₹33,400, Profit and Loss A/c (Dr.) ₹1,10,600. Terms: (a) Yogesh was to pay his wife’s loan. (b) Debtors realised ₹30,000. (c) Naresh was to take Investments at an agreed value of ₹26,000. (d) Creditors and Bills Payable, payable after two months, were paid immediately at a discount of 15% p.a. (e) Bills Receivable were received allowing a 5% rebate. (f) A debtor previously written off as bad paid ₹15,000. (g) An unrecorded asset realised ₹10,000. Prepare the Realisation Account, Partners’ Capital Accounts, Partners’ Loan Account and Cash/Bank Account.
REALISATION ACCOUNT
| Particulars | ₹ | Particulars | ₹ |
|---|---|---|---|
| To Investments A/c | 30,000 | By Investment Fluctuation Reserve A/c | 8,000 |
| To Debtors A/c | 40,000 | By Provision for Doubtful Debts A/c | 4,000 |
| To Bills Receivable A/c | 33,400 | By Creditors A/c | 40,000 |
| To Yogesh’s Capital A/c (Wife’s Loan taken over) | 42,000 | By Bills Payable A/c | 40,000 |
| To Cash/Bank A/c: | By Mrs. Yogesh’s Loan A/c | 42,000 | |
| Creditors 39,000 | By Cash/Bank A/c: | ||
| Bills Payable 39,000 | 78,000 | Debtors 30,000 | |
| To Naresh’s Capital A/c (Commission) | 10,000 | Bills Receivable 31,730 | |
| To Gain transferred to: | Bad Debt Recovered 15,000 | ||
| Yogesh’s Capital A/c 6,665 | Unrecorded Asset 10,000 | 86,730 | |
| Naresh’s Capital A/c 6,665 | 13,330 | By Naresh’s Capital A/c (Investments taken over) | 26,000 |
| Total | 2,46,730 | Total | 2,46,730 |
PARTNERS’ CAPITAL ACCOUNTS
| Particulars | Yogesh | Naresh | Particulars | Yogesh | Naresh |
|---|---|---|---|---|---|
| To Realisation A/c (Investments taken) | – | 26,000 | By Balance b/d | 21,000 | 21,000 |
| To Profit and Loss A/c | 55,300 | 55,300 | By Realisation A/c (Gain) | 6,665 | 6,665 |
| To Cash/Bank A/c | 14,365 | – | By Realisation A/c (Liability taken over) | 42,000 | – |
| By Realisation A/c (Commission) | – | 10,000 | |||
| By Naresh’s Loan A/c | – | 43,635 | |||
| Total | 69,665 | 81,300 | Total | 69,665 | 81,300 |
NARESH’S LOAN ACCOUNT
| Particulars | ₹ | Particulars | ₹ |
|---|---|---|---|
| To Naresh’s Capital A/c | 43,635 | By Balance b/d | 44,000 |
| To Cash/Bank A/c | 365 | ||
| Total | 44,000 | Total | 44,000 |
CASH/BANK ACCOUNT
| Particulars | ₹ | Particulars | ₹ |
|---|---|---|---|
| To Balance b/d | 6,000 | By Yogesh’s Capital A/c | 14,365 |
| To Realisation A/c (Assets realised) | 86,730 | By Naresh’s Loan A/c | 365 |
| By Realisation A/c (Liabilities paid) | 78,000 | ||
| Total | 92,730 | Total | 92,730 |
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.34 - 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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