T.S. Grewal Class 12 Chapter 7 Q.46 - Dissolution of a Partnership Firm

Question 46

X and Y were partners sharing profits and losses in the ratio of 3 : 2. They decided to dissolve the firm on 31st March, 2025. Their Capitals were X ₹40,000 and Y ₹30,000. Creditors amounted to ₹24,000. Assets were realised for ₹88,500. Creditors of ₹16,000 were taken over by X at ₹14,000. The remaining Creditors were paid ₹7,500. The cost of realisation came to ₹500. Prepare the necessary accounts.

Solution

Memorandum Balance Sheet: Capitals (40,000 + 30,000 = 70,000) + Creditors (24,000) = Sundry Assets ₹94,000 (balancing figure).

REALISATION ACCOUNT

Particulars	₹	Particulars	₹
To Sundry Assets A/c	94,000	By Creditors A/c	24,000
To X’s Capital A/c (Creditors taken over)	14,000	By Cash A/c (Assets realised)	88,500
To Cash A/c:		By Loss transferred to:
Creditors 7,500		X’s Capital A/c 2,100
Expenses 500	8,000	Y’s Capital A/c 1,400	3,500
Total	1,16,000	Total	1,16,000

PARTNERS’ CAPITAL ACCOUNTS

Particulars	X	Y	Particulars	X	Y
To Realisation A/c (Loss)	2,100	1,400	By Balance b/d	40,000	30,000
To Cash A/c	51,900	28,600	By Realisation A/c (Creditors taken over)	14,000	–
Total	54,000	30,000	Total	54,000	30,000

CASH ACCOUNT

Particulars	₹	Particulars	₹
To Realisation A/c (Assets)	88,500	By Realisation A/c	8,000
		By X’s Capital A/c	51,900
		By Y’s Capital A/c	28,600
Total	88,500	Total	88,500