T.S. Grewal Class 12 Chapter 7 Q.39 - Dissolution of a Partnership Firm

Question 39

There are two partners, X and Y, in a firm, with capitals of ₹50,000 and ₹40,000. The Creditors are ₹30,000. The assets of the firm realise ₹1,00,000. How much will X and Y receive?

Solution

Since only the capitals and creditors are given, the book value of Sundry Assets is found as the balancing figure of a Memorandum Balance Sheet: Capitals (50,000 + 40,000) + Creditors (30,000) = ₹1,20,000 = Sundry Assets.

REALISATION ACCOUNT

Particulars	₹	Particulars	₹
To Sundry Assets A/c	1,20,000	By Creditors A/c	30,000
To Cash A/c (Creditors paid)	30,000	By Cash A/c (Assets realised)	1,00,000
		By Loss transferred to:
		X’s Capital A/c 10,000
		Y’s Capital A/c 10,000	20,000
Total	1,50,000	Total	1,50,000

PARTNERS’ CAPITAL ACCOUNTS

Particulars	X	Y	Particulars	X	Y
To Realisation A/c (Loss)	10,000	10,000	By Balance b/d	50,000	40,000
To Cash A/c	40,000	30,000
Total	50,000	40,000	Total	50,000	40,000

X receives ₹40,000 and Y receives ₹30,000 (loss of ₹20,000 assumed shared equally, as no profit-sharing ratio is given).