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✦ FREE LEARNING — CLASS 11 & 12 — CBSE · PSEB — ACCOUNTS · ECONOMICS · BST ✦
Ashok, Babu and Chetan are in partnership sharing profits in the proportion of 1/2, 1/3 and 1/6. They dissolve the partnership on 31st March, 2025. Their Balance Sheet showed Sundry Creditors ₹20,000, Bills Payable ₹25,500, Babu’s Loan ₹30,000, Capitals – Ashok ₹70,000, Babu ₹55,000, Chetan ₹27,000; Current A/cs – Ashok ₹10,000, Babu ₹5,000, Chetan ₹3,000; Bank ₹7,500, Sundry Debtors ₹58,000, Stock ₹39,500, Machinery ₹48,000, Investments ₹42,000, Freehold Property ₹50,500. The Machinery was taken over by Babu for ₹45,000, Ashok took over the Investments for ₹40,000, and Chetan took over the Freehold Property at ₹55,000. The remaining assets realised: Sundry Debtors ₹56,500, Stock ₹36,500. Sundry Creditors were settled at a discount of 7%. An office computer, not shown in the books, realised ₹9,000. Realisation expenses amounted to ₹3,000. Prepare the Realisation Account, Partners’ Capital Accounts and Bank Account.
REALISATION ACCOUNT
| Particulars | ₹ | Particulars | ₹ |
|---|---|---|---|
| To Sundry Debtors A/c | 58,000 | By Sundry Creditors A/c | 20,000 |
| To Stock A/c | 39,500 | By Bills Payable A/c | 25,500 |
| To Machinery A/c | 48,000 | By Ashok’s Current A/c (Investments taken) | 40,000 |
| To Investment A/c | 42,000 | By Babu’s Current A/c (Machinery taken) | 45,000 |
| To Freehold Property A/c | 50,500 | By Chetan’s Current A/c (Freehold Property taken) | 55,000 |
| To Bank A/c: | By Bank A/c: | ||
| Sundry Creditors 18,600 | Sundry Debtors 56,500 | ||
| Bills Payable 25,500 | Stock 36,500 | ||
| Expenses 3,000 | 47,100 | Unrecorded Computer 9,000 | 1,02,000 |
| To Profit transferred to: | |||
| Ashok’s Current A/c 1,200 | |||
| Babu’s Current A/c 800 | |||
| Chetan’s Current A/c 400 | 2,400 | ||
| Total | 2,87,500 | Total | 2,87,500 |
PARTNERS’ CURRENT ACCOUNTS
| Particulars | Ashok | Babu | Chetan | Particulars | Ashok | Babu | Chetan |
|---|---|---|---|---|---|---|---|
| To Realisation A/c (Assets taken) | 40,000 | 45,000 | 55,000 | By Balance b/d | 10,000 | 5,000 | 3,000 |
| By Realisation A/c (Profit) | 1,200 | 800 | 400 | ||||
| By Capital A/c | 28,800 | 39,200 | 51,600 | ||||
| Total | 40,000 | 45,000 | 55,000 | Total | 40,000 | 45,000 | 55,000 |
PARTNERS’ CAPITAL ACCOUNTS
| Particulars | Ashok | Babu | Chetan | Particulars | Ashok | Babu | Chetan |
|---|---|---|---|---|---|---|---|
| To Current A/c | 28,800 | 39,200 | 51,600 | By Balance b/d | 70,000 | 55,000 | 27,000 |
| To Bank A/c | 41,200 | 15,800 | – | By Bank A/c | – | – | 24,600 |
| Total | 70,000 | 55,000 | 51,600 | Total | 70,000 | 55,000 | 51,600 |
BABU’S LOAN ACCOUNT
| Particulars | ₹ | Particulars | ₹ |
|---|---|---|---|
| To Bank A/c | 30,000 | By Balance b/d | 30,000 |
BANK ACCOUNT
| Particulars | ₹ | Particulars | ₹ |
|---|---|---|---|
| To Balance b/d | 7,500 | By Realisation A/c | 47,100 |
| To Realisation A/c | 1,02,000 | By Babu’s Loan A/c | 30,000 |
| To Chetan’s Capital A/c | 24,600 | By Ashok’s Capital A/c | 41,200 |
| By Babu’s Capital A/c | 15,800 | ||
| Total | 1,34,100 | Total | 1,34,100 |
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.35 - 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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