Question 1

Q.No.1 | Chapter 7 – Dissolution of a Partnership Firm | T.S. Grewal 12 Class Book Keeping Part - A - Vol. 1

Sarbjit Singh · Accepted Answer

Question 01 Chapter 7 of +2-A
1. Pass Journal entries in the following cases? a Expenses of realization 1,500. b Expenses of realisation 600 but paid by Mohan, a partner. c 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 2,000. d Motor car of book value 50,000 taken over by creditors of the book value of 40,000 in full settlement.
 
The solution of Question 01 Chapter 7 of +2-A: -

Date
Particulars
L.F.
Debi

Question 2

Q.No.2 | Chapter 7 – Dissolution of a Partnership Firm | T.S. Grewal 12 Class Book Keeping Part - A - Vol. 1

Sarbjit Singh · Accepted Answer

Question 02 Chapter 7 of +2-A
2. Pass Journal entries for the following: a Realisation expenses of 15,000 were to be met by Rahul, a partner, but were paid by the firm. b Ramesh, a partner, was paid remuneration of 25,000 and he was to meet all expenses. c Anuj, a partner, was paid remuneration of 20,000 and he was to meet all expenses. Firm paid an expense of 5,000.
 
The solution of Question 02 Chapter 7 of +2-A: -

Date
Particulars
L.F.
Debit
Credit

a
Rahul’s Capital A/c
Dr.
 
15,000

Question 3

Q.No.3 | Chapter 7 – Dissolution of a Partnership Firm | T.S. Grewal 12 Class Book Keeping Part - A - Vol. 1

Sarbjit Singh · Accepted Answer

Question 03 Chapter 7 of +2-A
3. Pass Journal entries for the following: a Realisation expenses amounted to 10,000 were paid by the firm on behalf of Alok, a partner, with whom it was agreed at 7,500. b Realisation expenses amounted to 5,000. It was agreed that the firm will pay 2,000 and balance by Ravinder, a partner. c Dissolution expenses amounted to 10,000 were paid by Amit, a partner, on behalf of the firm. 
 
The solution of Question 03 Chapter 7 of +2-A: -

Date
Particulars
L.F.
Deb

Question 4

Q.No.4 | Chapter 7 – Dissolution of a Partnership Firm | T.S. Grewal 12 Class Book Keeping Part - A - Vol. 1

Sarbjit Singh · Accepted Answer

Question 04 Chapter 7 of +2-A
4. Record necessary Journal entries in the following cases: a Creditors worth 85,000 accepted 40,000 as cash and Investment worth 43,000, in full settlement of their claim. b Creditors were 16,000. They accepted Machinery valued at 18,000 in settlement of their claim. c Creditors were 90,000. They accepted Building valued at 1,20,000 and paid cash to the firm 30,000
 
The solution of Question 04 Chapter 7 of +2-A: -

Date
Particulars
L.F.
Debit
Credit

a
Reali

Question 5

Q.No.5 | Chapter 7 – Dissolution of a Partnership Firm | T.S. Grewal 12 Class Book Keeping Part - A - Vol. 1

Sarbjit Singh · Accepted Answer

Question 05 Chapter 7 of +2-A
5. Pass Journal entries for the following at the time of dissolution of a firm: a Sale of Assets − 50,000. b Payment of Liabilities − 10,000. c A commission of 5% allowed to Mr. X, a partner, on sale of assets. d Realization expenses amounted to 15,000. The firm had agreed with Amrit, a partner, to reimburse him up to 10,000. e Z, an old customer, whose account for 6,000 was written off as bad in the previous year, paid 60% of the amount written off. f Investment B

Question 6

Q.No.6 | Chapter 7 – Dissolution of a Partnership Firm | T.S. Grewal 12 Class Book Keeping Part - A - Vol. 1

Sarbjit Singh · Accepted Answer

Question 06 Chapter 7 of +2-A
6. Pass Journal entries for the following transactions at the time of dissolution of the firm: a Loan of 10,000 advanced by a partner to the firm was refunded. b X, a partner, takes over an unrecorded asset Typewriter at 300. c Undistributed balance Debit of Profit and Loss Account 30,000. The firm has three partners X,Y and Z. d Assets of the firm realized 1,25,000. e Y who undertakes to carry out the dissolution proceedings is paid 2,000 for the same. f Creditors

Question 7

Q.No.7 | Chapter 7 – Dissolution of a Partnership Firm | T.S. Grewal 12 Class Book Keeping Part - A - Vol. 1

Sarbjit Singh · Accepted Answer

Question 07 Chapter 7 of +2-A
7.Pass necessary Journal entries for the following transactions on the dissolution of the firm P and Q after the various assets other than cash and outside liabilities have been transferred to Realization Account: a Bank Loan 12,000 was paid. b Stock worth 16,000 was taken over by partner Q. c Partner P paid a creditor 4,000. d An asset not appearing in the books of accounts realized 1,200. e Expenses of realization 2,000 were paid by partner Q. f Profit on realiza

Question 8

Q.No.8 | Chapter 7 – Dissolution of a Partnership Firm | T.S. Grewal 12 Class Book Keeping Part - A - Vol. 1

Sarbjit Singh · Accepted Answer

Question 08 Chapter 7 of +2-A
8. X, Y and Z are partners in a firm sharing profits in the ratio of 3: 2: 1 respectively. The firm was dissolved on 1st March 2013. After transferring assets other than cash and third party liabilities to the 'Realisation Account' you are provided with the following information:a There was a balance of 18,000 in the firm's Profit and Loss Account. b There was an unrecorded bike of 50,000 which was taken over by X. c Creditors of 5,000 were paid 4,000 in full settl

Question 9

Q.No.9 | Chapter 7 – Dissolution of a Partnership Firm | T.S. Grewal 12 Class Book Keeping Part - A - Vol. 1

Sarbjit Singh · Accepted Answer

Question 09 Chapter 7 of +2-A
9. Pass necessary Journal entries to record the following unrecorded assets and liabilities in the books of Paras and Priya: a There was an old furniture in the firm which had been written off completely in the books. This was sold for 3,000. b Ashish, an old customer whose account for 1,000 was written off as bad in the previous year, paid 60%, of the amount. c Paras agreed to takeover the firm's goodwill not recorded in the books of the firm, at a valuation of 30

Question 10

Q.No.10 | Chapter 7 – Dissolution of a Partnership Firm | T.S. Grewal 12 Class Book Keeping Part - A - Vol. 1

Sarbjit Singh · Accepted Answer

Question 10 Chapter 7 of +2-A
10. Aman and Harsh were partners in a firm. They decided to dissolve their firm. Pass necessary Journal entries for the following after various assets other than Cash and Bank and third party liabilities have been transferred to Realization Account: a There was furniture worth 50,000. Aman took over 50% of the furniture at 10% discount and the remaining furniture was sold at 30% profit on book value. b Profit and Loss Account was showing a credit balance of 15,000

Question 11

Q.No.11 | Chapter 7 – Dissolution of a Partnership Firm | T.S. Grewal 12 Class Book Keeping Part - A - Vol. 1

Sarbjit Singh · Accepted Answer

Question 11 Chapter 7 of +2-A
11. Rohit, Kunal and Sarthak are partners in a firm. They decided to dissolve their firm. Pass necessary Journal entries for the following after various assets other than Cash and Bank and the third party liability have been transferred to Realization Account: a Kunal agreed to pay off his wife's loan of 6,000. b Total Creditors of the firm were 40,000. Creditors worth 10,000 were given a piece of furniture costing 8,000 in full and final settlement. Remaining Cred

Question 12

Q.No.12 | Chapter 7 – Dissolution of a Partnership Firm | T.S. Grewal 12 Class Book Keeping Part - A - Vol. 1

Sarbjit Singh · Accepted Answer

Question 12 Chapter 7 of +2-A
12. Book Value of assets other than cash and bank transferred to Realization Account is 1,00,000. 50% of the assets are taken over by a partner Atul, at a discount of 20%; 40% of the remaining assets are sold at a profit of 30% on cost; 5% of the balance being obsolete, realized nothing and remaining assets are handed over to a Creditor, in full settlement of his claim. You are required to record the Journal entries for realization of assets.
 
The solution of Ques

Question 13

Q.No.13 | Chapter 7 – Dissolution of a Partnership Firm | T.S. Grewal 12 Class Book Keeping Part - A - Vol. 1

Sarbjit Singh · Accepted Answer

Question 13 Chapter 7 of +2-A
13. Lal and Pal were partners in a firm sharing profits in the ratio of 3 : 7. On 1st April, 2015 their firm was dissolved. After transferring assets other than cash and outsider's liabilities to Realization Account, you are given the following information: a A creditor of 3,60,000 accepted machinery valued at 5,00,000 and paid to the firm 1,40,000. b A second creditor for 50,000 accepted stock at 45,000 in full settlement of his claim. c A third creditor amounting

Question 14

Q.No.14 | Chapter 7 – Dissolution of a Partnership Firm | T.S. Grewal 12 Class Book Keeping Part - A - Vol. 1

Sarbjit Singh · Accepted Answer

Question 14 Chapter 7 of +2-A
14. Pass the Journal entries for the following transactions on the dissolution of the firm of P and Q after various assets other than cash and outside liabilities have been transferred to Realization Account: a Stock 2,00,000. 'P' took over 50% of stock at a discount of 10%. Remaining stock was sold at a profit of 25% on cost. b Debtors 2,25,000. Provision for Doubtful Debts 25,000. 20,000 of the book debts proved bad. c Land and Building Book value 12, 50, 000 sol

Question 15

Q.No.15 | Chapter 7 – Dissolution of a Partnership Firm | T.S. Grewal 12 Class Book Keeping Part - A - Vol. 1

Sarbjit Singh · Accepted Answer

Question 15 Chapter 7 of +2-A
15. What Journal entries would be passed for discharge of following unrecorded liabilities on the dissolution of a firm of partners A and B: a There was a contingent liability in respect of bills discounted but not matured of 18,500. An acceptor of one bill of 2,500 became insolvent and fifty paise in a rupee was recovered. The liability of the firm on account of this bill discounted and dishonored has not so far been recorded. b There was a contingent liability in

Question 16

Q.No.16 | Chapter 7 – Dissolution of a Partnership Firm | T.S. Grewal 12 Class Book Keeping Part - A - Vol. 1

Sarbjit Singh · Accepted Answer

Question 16 Chapter 7 of +2-A
16. Pass necessary Journal entries on the dissolution of a firm in the following cases: a Dharam, a partner, was appointed to look after the process of dissolution at a remuneration of 12,000 and he had to bear the dissolution expenses. Dissolution expenses 11,000 were paid by Dharam. b Jay, a partner, was appointed to look after the process of dissolution and was allowed a remuneration of 15,000. Jay agreed to bear dissolution expenses. Actual dissolution expenses

Question 17

Q.No.17 | Chapter 7 – Dissolution of a Partnership Firm | T.S. Grewal 12 Class Book Keeping Part - A - Vol. 1

Sarbjit Singh · Accepted Answer

Question 17 Chapter 7 of +2-A
17. Ramesh and Umesh were partners in firm sharing profits in the ratio of their capitals. On 31st March 2013, their Balance Sheet was as follows:

Liabilities
 
Amount
Assets
Amount

Creditors
 
1,70,000
Bank
1,10,000

Workmen Compensation Reserve
 
2,10,000
Debtors
2,40,000

General Reserve
 
2,00,000
Stock
1,30,000

Ramesh's Current Account
 
80,000
Furniture
2,00,000

Capital A/cs
 
 
Machinery
9,30,000

Ramesh
7,00,000
 
Umesh's Current Account
50,000

Question 18

Q.No.18 | Chapter 7 – Dissolution of a Partnership Firm | T.S. Grewal 12 Class Book Keeping Part - A - Vol. 1

Sarbjit Singh · Accepted Answer

Question 18 Chapter 7 of +2-A
18. Balance Sheet of a firm as at 31st March 2018, when it was decided to dissolve the same, was:

Liabilities
 
Amount
Assets
Amount

Sundry Creditors
 
14,000
Cash at Bank 
640

Reserve for Contingencies
 
500
Stock
4,740

Capital A/cs:
 
 
Debtors
5,540

X
4,000
 
Machinery
10,580

Y
3,000

21,500
 
21,500

19,500 were realized from all assets except Cash at Bank . The cost of winding up came to 440. X and Y shared profits in the ratio of 2

Question 19

Q.No.19 | Chapter 7 – Dissolution of a Partnership Firm | T.S. Grewal 12 Class Book Keeping Part - A - Vol. 1

Sarbjit Singh · Accepted Answer

Question 19 Chapter 7 of +2-A
19. Achal and Vishal were partners in firm sharing profits in the ratio of 3: 5 . On 31st March 2018 their Balance Sheet was as follows:

Liabilities
 
Amount
Assets
Amount

Capital A/cs:
 
 
Land and Building
4,00,000

Acha
3,00,000
 
Machinery
3,00,000

Vichal
5,00,000
8,00,000
Debtors
2,22,000

Creditors A/c
 
1,79,000
Cash at Bank
78,000

Employees’ Provident Fund A/c
 
21,000

10,00,000
 
10,00,000

The firm was dissolved on 1st A

Question 20

Q.No.20 | Chapter 7 – Dissolution of a Partnership Firm | T.S. Grewal 12 Class Book Keeping Part - A - Vol. 1

Sarbjit Singh · Accepted Answer

Question 20 Chapter 7 of +2-A
20. Bale and Yale are equal partners of a firm. They decide to dissolve their partnership on 31st March 2018 at which date their Balance Sheet stood as:

Liabilities
 
Amount
Assets
Amount

Capital A/cs:
 
 
Building
45,000

Bale
50,000
 
Machinery
15,000

Yale
40,000
90,000
Furniture
12,000

General Reserve
 
8,000
Debtors
8,000

Bale's Loan A/c
 
3,000
Stock
24,000

Creditors
 
14,000
Bank
11,000

1,15,000
 
1,15,000

a The assets realized were: St

Date	Particulars		Debit	Credit
a	Realization A/c	Dr.	1,500
	To Cash A/c			1,500
	(Being Realization expenses paid)
b	Realization A/c	Dr.	600
	To Mohan’s Capital A/c			600
	(Being Realization expenses paid by Mohan)
c	Realization A/c	Dr.	1,500
	To Mohan’s capital A/c			1,500
	(Being Commission allowed to Mohan and is the solution of the firm)
d	No entry No journal entry is passed because both motor car and creditors accounts have already been transferred to Realization Account and nothing is recovered or paid in terms of Cash and Bank

T.S. Grewal 12 Class Book Keeping Part - A - Vol. 1 Solutions Chapter No. 7 - Dissolution of a Partnership Firm

Quick Chapter Summary & Cheat Sheet

💡 Double Entry Accounting Principles

Topics & Questions Solved:

Q.No.1 | Chapter 7 – Dissolution of a Partnership Firm | T.S. Grewal 12 Class Book Keeping Part - A - Vol. 1

The solution of Question 01 Chapter 7 of +2-A: -

T.S. Grewal’s Double Entry Book Keeping (Vol. II: Accounting for Companies)

T.S. Grewal’s Double Entry Book Keeping (Vol. II: Accounting for Companies)

Q.No.2 | Chapter 7 – Dissolution of a Partnership Firm | T.S. Grewal 12 Class Book Keeping Part - A - Vol. 1

Q.No.3 | Chapter 7 – Dissolution of a Partnership Firm | T.S. Grewal 12 Class Book Keeping Part - A - Vol. 1

Q.No.4 | Chapter 7 – Dissolution of a Partnership Firm | T.S. Grewal 12 Class Book Keeping Part - A - Vol. 1

Q.No.5 | Chapter 7 – Dissolution of a Partnership Firm | T.S. Grewal 12 Class Book Keeping Part - A - Vol. 1

Q.No.6 | Chapter 7 – Dissolution of a Partnership Firm | T.S. Grewal 12 Class Book Keeping Part - A - Vol. 1

Q.No.7 | Chapter 7 – Dissolution of a Partnership Firm | T.S. Grewal 12 Class Book Keeping Part - A - Vol. 1

Q.No.8 | Chapter 7 – Dissolution of a Partnership Firm | T.S. Grewal 12 Class Book Keeping Part - A - Vol. 1

Q.No.9 | Chapter 7 – Dissolution of a Partnership Firm | T.S. Grewal 12 Class Book Keeping Part - A - Vol. 1

Q.No.10 | Chapter 7 – Dissolution of a Partnership Firm | T.S. Grewal 12 Class Book Keeping Part - A - Vol. 1

Q.No.11 | Chapter 7 – Dissolution of a Partnership Firm | T.S. Grewal 12 Class Book Keeping Part - A - Vol. 1

Q.No.12 | Chapter 7 – Dissolution of a Partnership Firm | T.S. Grewal 12 Class Book Keeping Part - A - Vol. 1

Q.No.13 | Chapter 7 – Dissolution of a Partnership Firm | T.S. Grewal 12 Class Book Keeping Part - A - Vol. 1

Q.No.14 | Chapter 7 – Dissolution of a Partnership Firm | T.S. Grewal 12 Class Book Keeping Part - A - Vol. 1

Q.No.15 | Chapter 7 – Dissolution of a Partnership Firm | T.S. Grewal 12 Class Book Keeping Part - A - Vol. 1

Q.No.16 | Chapter 7 – Dissolution of a Partnership Firm | T.S. Grewal 12 Class Book Keeping Part - A - Vol. 1

Q.No.17 | Chapter 7 – Dissolution of a Partnership Firm | T.S. Grewal 12 Class Book Keeping Part - A - Vol. 1

Q.No.18 | Chapter 7 – Dissolution of a Partnership Firm | T.S. Grewal 12 Class Book Keeping Part - A - Vol. 1

Q.No.19 | Chapter 7 – Dissolution of a Partnership Firm | T.S. Grewal 12 Class Book Keeping Part - A - Vol. 1

Q.No.20 | Chapter 7 – Dissolution of a Partnership Firm | T.S. Grewal 12 Class Book Keeping Part - A - Vol. 1

Q.No.21 | Chapter 7 – Dissolution of a Partnership Firm | T.S. Grewal 12 Class Book Keeping Part - A - Vol. 1

Q.No.22 | Chapter 7 – Dissolution of a Partnership Firm | T.S. Grewal 12 Class Book Keeping Part - A - Vol. 1

Q.No.23 | Chapter 7 – Dissolution of a Partnership Firm | T.S. Grewal 12 Class Book Keeping Part - A - Vol. 1

Q.No.24 | Chapter 7 – Dissolution of a Partnership Firm | T.S. Grewal 12 Class Book Keeping Part - A - Vol. 1

Q.No.25 | Chapter 7 – Dissolution of a Partnership Firm | T.S. Grewal 12 Class Book Keeping Part - A - Vol. 1

Q.No.26 | Chapter 7 – Dissolution of a Partnership Firm | T.S. Grewal 12 Class Book Keeping Part - A - Vol. 1

Q.No.27 | Chapter 7 – Dissolution of a Partnership Firm | T.S. Grewal 12 Class Book Keeping Part - A - Vol. 1

Q.No.28 | Chapter 7 – Dissolution of a Partnership Firm | T.S. Grewal 12 Class Book Keeping Part - A - Vol. 1

Q.No.29 | Chapter 7 – Dissolution of a Partnership Firm | T.S. Grewal 12 Class Book Keeping Part - A - Vol. 1

Q.No.30 | Chapter 7 – Dissolution of a Partnership Firm | T.S. Grewal 12 Class Book Keeping Part - A - Vol. 1

Q.No.31 | Chapter 7 – Dissolution of a Partnership Firm | T.S. Grewal 12 Class Book Keeping Part - A - Vol. 1

Q.No.32 | Chapter 7 – Dissolution of a Partnership Firm | T.S. Grewal 12 Class Book Keeping Part - A - Vol. 1

Q.No.33 | Chapter 7 – Dissolution of a Partnership Firm | T.S. Grewal 12 Class Book Keeping Part - A - Vol. 1

Q.No.34 | Chapter 7 – Dissolution of a Partnership Firm | T.S. Grewal 12 Class Book Keeping Part - A - Vol. 1

Q.No.35 | Chapter 7 – Dissolution of a Partnership Firm | T.S. Grewal 12 Class Book Keeping Part - A - Vol. 1

Q.No.36 | Chapter 7 – Dissolution of a Partnership Firm | T.S. Grewal 12 Class Book Keeping Part - A - Vol. 1

Q.No.37 | Chapter 7 – Dissolution of a Partnership Firm | T.S. Grewal 12 Class Book Keeping Part - A - Vol. 1

Q.No.38 | Chapter 7 – Dissolution of a Partnership Firm | T.S. Grewal 12 Class Book Keeping Part - A - Vol. 1

Q.No.39 | Chapter 7 – Dissolution of a Partnership Firm | T.S. Grewal 12 Class Book Keeping Part - A - Vol. 1

Q.No.40 | Chapter 7 – Dissolution of a Partnership Firm | T.S. Grewal 12 Class Book Keeping Part - A - Vol. 1

Q.No.41 | Chapter 7 – Dissolution of a Partnership Firm | T.S. Grewal 12 Class Book Keeping Part - A - Vol. 1

Q.No.42 | Chapter 7 – Dissolution of a Partnership Firm | T.S. Grewal 12 Class Book Keeping Part - A - Vol. 1

Q.No.43 | Chapter 7 – Dissolution of a Partnership Firm | T.S. Grewal 12 Class Book Keeping Part - A - Vol. 1

Q.No.44 | Chapter 7 – Dissolution of a Partnership Firm | T.S. Grewal 12 Class Book Keeping Part - A - Vol. 1

Q.No.45 | Chapter 7 – Dissolution of a Partnership Firm | T.S. Grewal 12 Class Book Keeping Part - A - Vol. 1

Q.No.46 | Chapter 7 – Dissolution of a Partnership Firm | T.S. Grewal 12 Class Book Keeping Part - A - Vol. 1

Q.No.47 | Chapter 7 – Dissolution of a Partnership Firm | T.S. Grewal 12 Class Book Keeping Part - A - Vol. 1

Q.No.48 | Chapter 7 – Dissolution of a Partnership Firm | T.S. Grewal 12 Class Book Keeping Part - A - Vol. 1

Q.No.49 | Chapter 7 – Dissolution of a Partnership Firm | T.S. Grewal 12 Class Book Keeping Part - A - Vol. 1

Q.No.50 | Chapter 7 – Dissolution of a Partnership Firm | T.S. Grewal 12 Class Book Keeping Part - A - Vol. 1

Q.No.51 | Chapter 7 – Dissolution of a Partnership Firm | T.S. Grewal 12 Class Book Keeping Part - A - Vol. 1

Sarbjit SinghB.Com and M.Com