Q: T.S. Grewal Class 12 Chapter 7 Q.2 - Dissolution of a Partnership Firm

Question 2 Land and Building (book value ₹1,60,000) sold for ₹3,00,000 through a broker who charged 2% commission on the deal. Journalise the transaction at the time of dissolution of the firm. Solution JOURNAL DateParticularsL.F.Dr. (₹)Cr. (₹) Bank A/c Dr. (3,00,000 – 6,000)2,94,000 To Realisation A/c2,94,000 (Amount realised from Land and Building, net of 2% broker’s commission of ₹6,000 on ₹3,00,000)

Q: T.S. Grewal Class 12 Chapter 7 Q.4 - Dissolution of a Partnership Firm

Question 4 A Loan from X, a partner, of ₹22,000 exists on the liabilities side of the firm’s Balance Sheet, and X’s Capital Account has a debit balance of ₹2,000. What Journal entry will you pass on payment of such a loan? Solution JOURNAL DateParticularsL.F.Dr. (₹)Cr. (₹) Loan from X A/c Dr.22,000 To X’s Capital A/c2,000 To Bank A/c20,000 (X’s debit balance of ₹2,000 set off against his

Question 1

T.S. Grewal Class 12 Chapter 7 Q.1 - Dissolution of a Partnership Firm

Sarbjit Singh · Accepted Answer

Question 1
What Journal entry will be passed when unrecorded furniture of &#8377;20,000 is taken over by X, a partner, at &#8377;15,000 on the dissolution of the firm?
Solution
JOURNAL

DateParticularsL.F.Dr. (&#8377;)Cr. (&#8377;)
X&#8217;s Capital A/c    Dr.15,000
   To Realisation A/c15,000
(Unrecorded furniture of &#8377;20,000 taken over by X, a partner, at an agreed value of &#8377;15,000)

Question 2

T.S. Grewal Class 12 Chapter 7 Q.2 - Dissolution of a Partnership Firm

Sarbjit Singh · Accepted Answer

Question 2
Land and Building (book value &#8377;1,60,000) sold for &#8377;3,00,000 through a broker who charged 2% commission on the deal. Journalise the transaction at the time of dissolution of the firm.
Solution
JOURNAL

DateParticularsL.F.Dr. (&#8377;)Cr. (&#8377;)
Bank A/c    Dr. (3,00,000 &#8211; 6,000)2,94,000
   To Realisation A/c2,94,000
(Amount realised from Land and Building, net of 2% broker&#8217;s commission of &#8377;6,000 on &#8377;3,00,000)

Question 3

T.S. Grewal Class 12 Chapter 7 Q.3 - Dissolution of a Partnership Firm

Sarbjit Singh · Accepted Answer

Question 3
(a) What Journal entry will be passed when an unrecorded liability of &#8377;15,000 is settled at &#8377;10,000 and paid by X, a partner, on the dissolution of a firm? (b) What Journal entry will be passed when a machine having a book value of &#8377;15,000 is given to Rakesh, a creditor of &#8377;22,000, at an agreed valuation of &#8377;12,000 towards partial payment of his dues?
Solution
JOURNAL

DateParticularsL.F.Dr. (&#8377;)Cr. (&#8377;)
(a)
Realisation A/c    Dr.

Question 4

T.S. Grewal Class 12 Chapter 7 Q.4 - Dissolution of a Partnership Firm

Sarbjit Singh · Accepted Answer

Question 4
A Loan from X, a partner, of &#8377;22,000 exists on the liabilities side of the firm&#8217;s Balance Sheet, and X&#8217;s Capital Account has a debit balance of &#8377;2,000. What Journal entry will you pass on payment of such a loan?
Solution
JOURNAL

DateParticularsL.F.Dr. (&#8377;)Cr. (&#8377;)
Loan from X A/c    Dr.22,000
   To X&#8217;s Capital A/c2,000
   To Bank A/c20,000
(X&#8217;s debit balance of &#8377;2,000 set off against his

Question 5

T.S. Grewal Class 12 Chapter 7 Q.5 - Dissolution of a Partnership Firm

Sarbjit Singh · Accepted Answer

Question 5
Pass Journal entries in the following cases: (a) Expenses of realisation &#8377;600, paid by Mohan, a partner. (b) Mohan, one of the partners of the firm, was asked to look into the dissolution of the firm, for which he was allowed a commission of &#8377;2,000. (c) Motor car of book value &#8377;50,000 taken over by Creditors of book value &#8377;40,000 in full settlement.
Solution
JOURNAL

DateParticularsL.F.Dr. (&#8377;)Cr. (&#8377;)
(a)
Realisation A/c    Dr.600
&nbs

Question 6

T.S. Grewal Class 12 Chapter 7 Q.6 - Dissolution of a Partnership Firm

Sarbjit Singh · Accepted Answer

Question 6
Pass Journal entries for the following: (a) Realisation expenses of &#8377;10,000 were to be met by Mohan, a partner, but were paid by the firm. (b) Mahesh, a partner, was paid remuneration of &#8377;25,000, and he was to meet all expenses. (c) Suresh, a partner, was paid remuneration of &#8377;20,000, and he was to meet all expenses; the firm, however, paid an expense of &#8377;5,000.
Solution
JOURNAL

DateParticularsL.F.Dr. (&#8377;)Cr. (&#8377;)
(a)
Mohan&#8217;s Capital A/c

Question 7

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

Sarbjit Singh · Accepted Answer

Question 7
Pass Journal entries for the following: (a) The firm agreed to pay Alok &#8377;7,500 towards dissolution expenses; actual dissolution expenses of &#8377;10,000 were paid by the firm. (b) Realisation expenses were &#8377;5,000; it was agreed that the firm would bear &#8377;2,000 and the balance would be borne by Ravi, a partner. (c) Dissolution expenses of &#8377;10,000 were paid by Amit, a partner, on behalf of the firm. (d) Realisation expenses up to &#8377;6,000 were agreed by the f

Question 8

T.S. Grewal Class 12 Chapter 7 Q.8 - Dissolution of a Partnership Firm

Sarbjit Singh · Accepted Answer

Question 8
Pass the necessary Journal entries in the following cases: (a) Creditors worth &#8377;85,000 accepted &#8377;40,000 as cash and Investments worth &#8377;43,000 in full settlement of their claim. (b) Creditors were &#8377;16,000; they accepted Machinery valued at &#8377;18,000 in settlement of their claim. (c) Creditors were &#8377;90,000; they accepted Building valued at &#8377;1,20,000 and paid cash to the firm of &#8377;30,000.
Solution
JOURNAL

DateParticularsL.F.Dr. (&#8377;)Cr. (

Question 9

T.S. Grewal Class 12 Chapter 7 Q.9 - Dissolution of a Partnership Firm

Sarbjit Singh · Accepted Answer

Question 9
Charu, Dhwani, Iknoor and Paavni were partners in a firm. Within a year of starting under a verbal agreement, disagreements arose and they decided to dissolve the firm. The firm appointed Ms. Kavya, a financial advisor and legal consultant, to carry out the dissolution. Assets and external liabilities were first transferred to the Realisation Account. Pass the necessary entries for the following: (i) Dhwani&#8217;s Loan of &#8377;50,000 to the firm was settled by paying &#8377;42,000.

Question 10

T.S. Grewal Class 12 Chapter 7 Q.10 - Dissolution of a Partnership Firm

Sarbjit Singh · Accepted Answer

Question 10
Pass Journal entries for the following at the time of dissolution of a firm: (a) Sale of assets &#8211; &#8377;50,000. (b) Payment of liabilities &#8211; &#8377;10,000. (c) A commission of 5% allowed to Mr. X, a partner, on the sale of assets. (d) Realisation expenses amounted to &#8377;15,000; the firm had agreed to reimburse Amrit, a partner, up to &#8377;10,000. (e) Employees&#8217; Provident Fund &#8377;10,000 (paid off). (f) Z, an old customer whose account for &#8377;6,000 was

Question 11

T.S. Grewal Class 12 Chapter 7 Q.11 - Dissolution of a Partnership Firm

Sarbjit Singh · Accepted Answer

Question 11
Pass the necessary Journal entries for the following transactions on the dissolution of the partnership firm of Kavita and Suman on 31st March, 2022, after the various assets (other than cash) and third-party liabilities have been transferred to the Realisation Account. (a) Kavita took over stock amounting to &#8377;1,00,000 at &#8377;90,000. (b) Creditors of &#8377;2,00,000 took over Plant and Machinery of &#8377;3,00,000 in full settlement of their claim. (c) There was an unrecorde

Question 12

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

Sarbjit Singh · Accepted Answer

Question 12
Simar, Raja and Rita were partners in a firm sharing profits and losses in the ratio of 2 : 2 : 1. The firm was dissolved on 31st March, 2019. After the transfer of assets (other than cash) and external liabilities to the Realisation Account, the following transactions took place: (a) A debtor whose debt of &#8377;90,000 had been written off as bad paid &#8377;88,000 in full settlement. (b) Creditors of &#8377;1,21,000 accepted stock at &#8377;71,000 and the balance was paid to them

Question 13

T.S. Grewal Class 12 Chapter 7 Q.13 - Dissolution of a Partnership Firm

Sarbjit Singh · Accepted Answer

Question 13
Pass the necessary Journal entries to record the following unrecorded assets and liabilities in the books of Paras and Priya (equal partners): (a) There was old furniture in the firm, completely written off in the books. This was sold for &#8377;3,000. (b) Ashish, an old customer whose account for &#8377;1,000 was written off as bad in the previous year, paid 60% of the amount. (c) Paras agreed to take over the firm&#8217;s goodwill (not recorded in the books) at a valuation of &#837

Question 14

T.S. Grewal Class 12 Chapter 7 Q.14 - Dissolution of a Partnership Firm

Sarbjit Singh · Accepted Answer

Question 14
Aman and Harsh (equal partners) decided to dissolve their firm. Pass the necessary Journal entries for the following after various assets (other than Cash and Bank) and third-party liabilities have been transferred to the Realisation Account: (a) There was furniture worth &#8377;50,000. Aman took over 50% of the furniture at a 10% discount, and the remaining furniture was sold at a 30% profit on book value. (b) The Profit and Loss Account showed a credit balance of &#8377;15,000 on t

Question 15

T.S. Grewal Class 12 Chapter 7 Q.15 - Dissolution of a Partnership Firm

Sarbjit Singh · Accepted Answer

Question 15
Rohit, Kunal and Sarthak (equal partners) decided to dissolve their firm. Pass the necessary Journal entries for the following after various assets (other than Cash and Bank) and third-party liabilities have been transferred to the Realisation Account: (a) Kunal agreed to pay off his wife&#8217;s loan of &#8377;6,000. (b) Total Creditors of the firm were &#8377;40,000. Creditors worth &#8377;10,000 were given a piece of furniture costing &#8377;8,000 in full and final settlement. Rem

Question 16

T.S. Grewal Class 12 Chapter 7 Q.16 - Dissolution of a Partnership Firm

Sarbjit Singh · Accepted Answer

Question 16
Pass the necessary Journal entries for the following transactions on the dissolution of a firm, after various assets (other than cash) and outside liabilities have been transferred to the Realisation Account: (i) Realisation expenses of the firm amounting to &#8377;2,600 were paid by partner Aman. (ii) A creditor of &#8377;4,500 took over stock valued at &#8377;5,200 in full settlement. (iii) An unrecorded asset realised &#8377;3,500. (iv) Remaining creditors amounting to &#8377;20,0

Question 17

T.S. Grewal Class 12 Chapter 7 Q.17 - Dissolution of a Partnership Firm

Sarbjit Singh · Accepted Answer

Question 17
Pass the necessary Journal entries for the following transactions on the dissolution of the partnership firm of Tina and Rina, sharing profits in the ratio of 3 : 2, after the various assets (other than cash and bank) and external liabilities have been transferred to the Realisation Account: (i) There was an outstanding bill for repairs, for which &#8377;20,000 were paid. (ii) The firm had stock of &#8377;80,000. Tina took over 50% of the stock at a discount of 20%, while the remaini

Question 18

T.S. Grewal Class 12 Chapter 7 Q.18 - Dissolution of a Partnership Firm

Sarbjit Singh · Accepted Answer

Question 18
Pass the necessary Journal entries on the dissolution of a firm in the following cases: (a) Dharam, a partner, was appointed to look after the dissolution process at a remuneration of &#8377;12,000; dissolution expenses were to be borne by the firm; dissolution expenses of &#8377;11,000 were paid by Dharam. (b) Jay, a partner, was to be paid &#8377;15,000 including dissolution expenses; dissolution expenses of &#8377;16,000 were paid by Vijay, another partner, on behalf of Jay. (c) D

Question 19

T.S. Grewal Class 12 Chapter 7 Q.19 - Dissolution of a Partnership Firm

Sarbjit Singh · Accepted Answer

Question 19
C, D and E were partners in a firm sharing profits in the ratio of 3 : 1 : 1. Their Balance Sheet as at 31st March, 2022 showed Capitals &#8211; C &#8377;4,00,000, D &#8377;2,00,000, E &#8377;1,00,000; C&#8217;s Loan &#8377;1,20,000, Sundry Creditors &#8377;1,00,000, Bills Payable &#8377;2,00,000; Machinery &#8377;3,20,000, Investments &#8377;3,00,000, Stock &#8377;2,00,000, Debtors &#8377;1,00,000, Cash at Bank &#8377;2,00,000. On the above date, the firm was dissolved due to disagr

Question 20

T.S. Grewal Class 12 Chapter 7 Q.20 - Dissolution of a Partnership Firm

Sarbjit Singh · Accepted Answer

Question 20
Ramesh and Umesh were partners in a firm sharing profits in the ratio of their capitals. On 31st March, 2025, their Balance Sheet showed Creditors &#8377;1,70,000, Workmen Compensation Reserve &#8377;2,10,000, General Reserve &#8377;2,00,000, Ramesh&#8217;s Current Account (Cr.) &#8377;80,000, Capitals &#8211; Ramesh &#8377;7,00,000, Umesh &#8377;3,00,000; Bank &#8377;1,10,000, Debtors &#8377;2,40,000, Stock &#8377;1,30,000, Furniture &#8377;2,00,000, Machinery &#8377;9,30,000, Umesh

Particulars	Dr. (₹)	Cr. (₹)
X’s Capital A/c Dr.	15,000
To Realisation A/c		15,000
(Unrecorded furniture of ₹20,000 taken over by X, a partner, at an agreed value of ₹15,000)

T.S. Grewal Class 12 Vol 1 2025-2026 Solutions Chapter 7 - Dissolution of a Partnership Firm

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Table of Contents

T.S. Grewal Class 12 Chapter 7 Q.1 - Dissolution of a Partnership Firm

Question 1

Solution

T.S. Grewal Class 12 Chapter 7 Q.2 - Dissolution of a Partnership Firm

T.S. Grewal Class 12 Chapter 7 Q.3 - Dissolution of a Partnership Firm

T.S. Grewal Class 12 Chapter 7 Q.4 - Dissolution of a Partnership Firm

T.S. Grewal Class 12 Chapter 7 Q.5 - Dissolution of a Partnership Firm

T.S. Grewal Class 12 Chapter 7 Q.6 - Dissolution of a Partnership Firm

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

T.S. Grewal Class 12 Chapter 7 Q.8 - Dissolution of a Partnership Firm

T.S. Grewal Class 12 Chapter 7 Q.9 - Dissolution of a Partnership Firm

T.S. Grewal Class 12 Chapter 7 Q.10 - Dissolution of a Partnership Firm

T.S. Grewal Class 12 Chapter 7 Q.11 - Dissolution of a Partnership Firm

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

T.S. Grewal Class 12 Chapter 7 Q.13 - Dissolution of a Partnership Firm

T.S. Grewal Class 12 Chapter 7 Q.14 - Dissolution of a Partnership Firm

T.S. Grewal Class 12 Chapter 7 Q.15 - Dissolution of a Partnership Firm

T.S. Grewal Class 12 Chapter 7 Q.16 - Dissolution of a Partnership Firm

T.S. Grewal Class 12 Chapter 7 Q.17 - Dissolution of a Partnership Firm

T.S. Grewal Class 12 Chapter 7 Q.18 - Dissolution of a Partnership Firm

T.S. Grewal Class 12 Chapter 7 Q.19 - Dissolution of a Partnership Firm

T.S. Grewal Class 12 Chapter 7 Q.20 - Dissolution of a Partnership Firm

T.S. Grewal Class 12 Chapter 7 Q.21 - Dissolution of a Partnership Firm

T.S. Grewal Class 12 Chapter 7 Q.22 - Dissolution of a Partnership Firm

T.S. Grewal Class 12 Chapter 7 Q.23 - Dissolution of a Partnership Firm

T.S. Grewal Class 12 Chapter 7 Q.24 - Dissolution of a Partnership Firm

T.S. Grewal Class 12 Chapter 7 Q.25 - Dissolution of a Partnership Firm

T.S. Grewal Class 12 Chapter 7 Q.26 - Dissolution of a Partnership Firm

T.S. Grewal Class 12 Chapter 7 Q.27 - Dissolution of a Partnership Firm

T.S. Grewal Class 12 Chapter 7 Q.28 - Dissolution of a Partnership Firm

T.S. Grewal Class 12 Chapter 7 Q.29 - Dissolution of a Partnership Firm

T.S. Grewal Class 12 Chapter 7 Q.30 - Dissolution of a Partnership Firm

T.S. Grewal Class 12 Chapter 7 Q.31 - Dissolution of a Partnership Firm

T.S. Grewal Class 12 Chapter 7 Q.32 - Dissolution of a Partnership Firm

T.S. Grewal Class 12 Chapter 7 Q.33 - Dissolution of a Partnership Firm

T.S. Grewal Class 12 Chapter 7 Q.34 - Dissolution of a Partnership Firm

T.S. Grewal Class 12 Chapter 7 Q.35 - Dissolution of a Partnership Firm

T.S. Grewal Class 12 Chapter 7 Q.36 - Dissolution of a Partnership Firm

T.S. Grewal Class 12 Chapter 7 Q.37 - Dissolution of a Partnership Firm

T.S. Grewal Class 12 Chapter 7 Q.38 - Dissolution of a Partnership Firm

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

T.S. Grewal Class 12 Chapter 7 Q.40 - Dissolution of a Partnership Firm

T.S. Grewal Class 12 Chapter 7 Q.41 - Dissolution of a Partnership Firm

T.S. Grewal Class 12 Chapter 7 Q.42 - Dissolution of a Partnership Firm

T.S. Grewal Class 12 Chapter 7 Q.43 - Dissolution of a Partnership Firm

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

T.S. Grewal Class 12 Chapter 7 Q.45 - Dissolution of a Partnership Firm

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

T.S. Grewal Class 12 Chapter 7 Q.47 - Dissolution of a Partnership Firm

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