T.S. Grewal Class 12 Chapter 7 Q.44 - Dissolution of a Partnership Firm

Question 44

Pritya, Komal and Rakhi were in partnership sharing profits and losses in the ratio of 2 : 1 : 1. They decided to dissolve the partnership. On the date of dissolution, Sundry Assets (including cash ₹5,000) amounted to ₹88,000; assets realised ₹80,000 (including an unrecorded asset which realised ₹4,000). A contingent liability on account of bills discounted, ₹8,000, was paid by the firm. The Capital Accounts of Pritya, Komal and Rakhi each showed a balance of ₹20,000. Prepare the Realisation Account, Partners’ Capital Accounts and Cash Account.

Solution

Memorandum Balance Sheet: Capitals (20,000 × 3 = 60,000) + Sundry Liabilities (balancing figure) = ₹88,000 (total assets, including cash). Sundry Liabilities = ₹28,000.

REALISATION ACCOUNT

Particulars	₹	Particulars	₹
To Sundry Assets A/c	83,000	By Sundry Liabilities A/c	28,000
To Cash A/c:		By Cash A/c (Assets realised)	80,000
Sundry Liabilities 28,000
Contingent Liabilities 8,000	36,000
		By Loss transferred to:
		Pritya’s Capital A/c 5,500
		Komal’s Capital A/c 2,750
		Rakhi’s Capital A/c 2,750	11,000
Total	1,19,000	Total	1,19,000

PARTNERS’ CAPITAL ACCOUNTS

Particulars	Pritya	Komal	Rakhi	Particulars	Pritya	Komal	Rakhi
To Realisation A/c (Loss)	5,500	2,750	2,750	By Balance b/d	20,000	20,000	20,000
To Cash A/c	14,500	17,250	17,250
Total	20,000	20,000	20,000	Total	20,000	20,000	20,000

CASH ACCOUNT

Particulars	₹	Particulars	₹
To Balance b/d	5,000	By Realisation A/c	36,000
To Realisation A/c	80,000	By Pritya’s Capital A/c	14,500
		By Komal’s Capital A/c	17,250
		By Rakhi’s Capital A/c	17,250
Total	85,000	Total	85,000