Question 1

Question 01 Chapter 7 of +2 Part-1 - USHA Publication 12 Class Part - 1

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Question 01 Chapter 7 of +2-Part-1
01.(goodwill does not appear in books ) A & B are partners . They decided top dissolve the business . There is no goodwill appearing in the books. Pass Journal entries in the books of firm.(a) If goodwill was sold for Rs. 50,000 cash. (b) If goodwill was taken over by partner A at Rs. 30,000
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Question 2

Question 02 Chapter 7 of +2 Part-1 - USHA Publication

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Question 02 Chapter 7 of +2 Part-1 - USHA
2. (Realisation Entries) Journalise the following in the books of the firm.

Realisation expenses met by firm Rs. 800.
Realisation expenses of Rs. 600 were paid by partner X.
Partner Y will get Rs. 6,000 for supervising dissolution and he will bear dissolution expenses from his pocket which amounted to Rs. 1,800.
Realisation expenses of Rs. 1,500 are to be met by partner Z but took out cash from the firm to pay his expense.

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Question 3

Question 03 Chapter 7 of +2 Part-1 - USHA Publication 12 Class Part - 1

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Question 03 Chapter 7 of +2-Part-1
3. (Realisation Entries) Pass the necessary Journal Entries for the following transactions c the dissolution of the firm of James and Haider who were sharing profit and losses in th ratio of 2 1. The various assets (other than cash) and outside liabilities have bee transferred to realization account:

James agreed to pay off his brother's loan Rs. 10,000.
Debtors realized Rs. 12,000.
Haider took over all investments at Rs. 12,000.
Sundry creditors Rs. 20,000 w

Question 4

Question 04 Chapter 7 of +2 Part-1 - USHA Publication 12 Class Part - 1

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Question 04 Chapter 7 of +2-Part-1
4. (Journal Entries) A firm of partner C and D sharing profits in 3:2 ratio was dissolve. The following balance appeared in the books:

General Reserve Rs. 10,000
Reserve Fund Rs. 8,000
Profit and Loss A/c (Dr.) Rs. 20,000
Advertisement Suspense A/c Rs. 5,000
Partner C's loan 10,000 was paid by the firm in cash .
Loan Rs. 25,000 given by 'D' to the firm was transferred to his capital account .You are required to pass journal entries.

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Question 5

Question 05 Chapter 7 of +2 Part-1 - USHA Publication 12 Class Part - 1

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Question 05 Chapter 7 of +2-Part-1
5. (Journal Entries) Pass the required journal entry for each of the following cases :

Expenses of realisation of a firm amounted to Rs. 1,200.
Realisation expenses of the firm amounting to Rs. 1,600 paid by A partner.
Realisation expenses were agreed to be borne by Arun a partner personally. Expenses amount to Rs. 1,100.
Z was entrusted with the work of dissolution at a cost of Rs.1,200. Actual amount was Rs. 1,600.

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Question 6

Question 06 Chapter 7 of +2 Part-1 - USHA Publication 12 Class Part - 1

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Question 06 Chapter 7 of +2-Part-1
6. (Unrecorded Liabilities) Pass journal entries in following cases:(a) Unrecorded liability for wages Rs.1,800 was paid by partner A.(b) Unrecorded liability of Rs. 2,500 settled at Rs. 2,100. (c) Unrecorded liability of Rs.1,500 for salaries taken over by a debtor
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Question 7

Question 07 Chapter 7 of +2 Part-1 - USHA Publication 12 Class Part - 1

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Question 07 Chapter 7 of +2-Part-1
7. (Unrecorded Liabilities) On 31 March a firm of partner X and A was dissolved was an outstanding bill of salary of Rs. 8,000. Pass journal entry when :(a) It is settled for Rs. 6,000. (b) It is assumed by X for Rs. 6,000.
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Question 8

Question 08 Chapter 7 of +2 Part-1 - USHA Publication 12 Class Part - 1

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Question 08 Chapter 7 of +2-Part-1
8. (Journal Entries) What journal entries would you pass for the following transactions on the dissolution of a firm after the various assets (other than cash) and outside liabilities have been transferred to realisation account ?(a) Bank loan Rs.12,000 is paid.(b) Stock worth Rs.6,000 is taken by partner B.(c) Partner A agrees to pay a creditor Rs. 3,000 due to him.(d) An asset not appearing in the books of accounts realised Rs.700.(e) Profit on realisation R

Question 9

Question 09 Chapter 7 of +2 Part-1 - USHA Publication 12 Class Part - 1

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Question 09 Chapter 7 of +2-Part-1
9. (Realisation Entries) Pass Journal Entries for the following transactions at the time of dissolution of the firm. (a) The assets of the firm realised Rs. 1,00,000(b) Creditors paid Rs. 26,000 in full settlement of their account of Rs.30,000(c) Loan of Rs. 25,000 advanced by a partner to the firm on dissolution of the firm(d) Dissolution Expenses amount to Rs. 1,000 (e) An unrecorded assets realized Rs. 1,500.
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Question 10

Question 10 Chapter 7 of +2 Part-1 - USHA Publication 12 Class Part - 1

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Question 10 Chapter 7 of +2-Part-1
10. (Realisation Entries) Pass journal entries :(a) On dissolution a machine of Rs. 8,000 was found unrecorded it in realised at Rs. 7,000. Expenses Rs. 200 incurred on its realisation.(b) Investment in shares was written off three years ago. It was found to be worth Rs. 5,000 on dissolution. Partner X took over the shares. (c) Unrecorded assets of Rs. 3,000 was given to a creditor of Rs. 4,000 whose claim was omitted from books. The balance to the creditor wa

Question 11

Question 11 Chapter 7 of +2 Part-1 - USHA Publication 12 Class Part - 1

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Question 11 Chapter 7 of +2-Part-1
 11. (Realisation Entries) A and B were partners in a firm sharing profit in the ratio of 4:3 The firm was dissolved on 25-02-2018 Pass the Journal Entries for the following transactions: (i) Debtors of Rs. 60,000 were taken over by A for Rs.54,000.(ii) Creditors Rs. 45,000 were paid at a discount of 5%(iii )Realisation expenses Rs. 3,000 were paid by Partner B. (iv) Loss on Realisation was 21,000
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Question 12

Question 12 Chapter 7 of +2 Part-1 - USHA Publication 12 Class Part - 1

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Question 12 Chapter 7 of +2-Part-1
12 (Journal Entries) What journal entries will be passed for the following transactions on the dissolution of the firm.1. An unrecorded asset realized Rs. 1,300.2. Total creditors of the firm were Rs. 30,000 outs of this creditors waived their claim Rs. 5,000 while the rest agreed to allow discount @ 10% on their respective claim 3. Z was entrusted with the job of dissolution at a cost of Rs. 1,200, while actual amount was Rs. 1,600.
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Question 13

Question 13 Chapter 7 of +2 Part-1 - USHA Publication 12 Class Part - 1

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Question 13 Chapter 7 of +2-Part-1
13. (Realisation Account) Maninder, Jatinder and Rupinder are partners in the firm sharing profits in the ratio of 4:3:3 respectively On 1-4-2017 they decided to dissolve the firm. On that date the sundry assets were Rs. 3,48,460, the creditors amounted to Rs. 46,300 and cash in hand was Rs. 77,840. The assets realized were Rs. 2,89,820 and the expenses of dissolution were Rs. 3,720. Prepare Realisation Account
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Question 14

Question 14 Chapter 7 of +2 Part-1 - USHA Publication 12 Class Part - 1

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Question 14 Chapter 7 of +2-Part-1
14. (Realisation A/c/Partner's Capital Ne/Cash A/e) A, B and C are partners sharing Profits and Losses equally. They dissolve the firm on 31st March, 2018 on which date their position was as follows:

Liabilities 
Rs.
Assets 
Rs.

Capital A/c
 
FIXED ASSETS 
1,00,000

A
30,000
CURRENT ASSETS 
40,000

B
30,000
CASH & bank 
10,000

C
30,000

CREDITORS 
60,000

1,50,000
 
1,50,000

All the assets realised 10 % less than the book

Question 15

Question 15 Chapter 7 of +2 Part-1 - USHA Publication 12 Class Part - 1

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Question 15 Chapter 7 of +2-Part-1
15. (Realisation A/c/GST) Following is the Balance Sheet of Rama and Krishna who are equal partners on 31-3-2013, on which date the firm is dissolved :

Liabilities 
Rs.
Assets 
Rs.

Bank overdraft 
10,000
Cash in hand 
6,000

Reserve 
20,000
Stock 
40,000

Sundry Creditors 
30,000
Debtors
24,000

Capitals 
 
Machinery 
20,000

Rama 
50,000
Land & Buildings 
60,000

Krishna
40,000

1,50,000
 
1,50,000

Assets realised as follows

Question 16

Question 16 Chapter 7 of +2 Part-1 - USHA Publication 12 Class Part - 1

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Question 16 Chapter 7 of +2-Part-1
16. (Journal/Realisation A/c/Capital A/c/Cash A/c) Thapa and Sudarshan are partners sharing profits and losses as to 3/5 and 2/5. Their Balance sheet on 31st March, 2018 was as follows :

Liabilities 
Rs.
Assets 
Rs.

Creditors
528
Cash 
363

Reserve for contingencies 
500
Investments 
2,080

Bank loan 
1,000
Debtors 
2,960

Capitals 
 
Stock 
1,875

Thapa 
6,000
Furniture 
2,750

Sudarshan 
2,000

10,028
 
10,028

They di

Question 17

Question 17 Chapter 7 of +2 Part-1 - USHA Publication 12 Class Part - 1

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Question 17 Chapter 7 of +2-Part-1
17. (Journal/Realisation A/e/Partner's Capital A/c/Cash A/e) A, B and C decided to dissolve partnership. The position as on 31st December 2015, the date of dissolution was as follows

Liabilities 
Rs.
Assets 
Rs.

Creditors 
2,750
Furniture 
50

A’s loan A/c 
300
Stock 
1,750

Capitals 
 
Debtors 
2,400

A
1,000
Bills receivable 
300

B
500
Cash 
100

C
50

4,600
 
4,600

They shared profits and losses in the ratio of A 1/2: B 3/10

Question 18

Question 18 Chapter 7 of +2 Part-1 - USHA Publication 12 Class Part - 1

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Question 18 Chapter 7 of +2-Part-1
18. (Realisation A/c/Partner's Capital A/e) X. Y and Z are three partners. Their sharing ratio was 3:2: 1. Their balance sheet on 30th September 2015 was as under

Liabilities 
Rs.
Assets 
Rs.

Creditors 
5,000
Stock 
5,000

Z’s loan A/c 
3,000
Debtors 
10,000

X’s current A/c
1,000
Goodwill 
15,000

Z’s current A/c 
500
Furniture 
4,000

Capitals 
 
Cash 
1,000

X
15,000
Y’s current A/c 
5,000

Y 
5,500

Z
10,000

40,000
 
40,000

Firm

Question 19

Question 19 Chapter 7 of +2 Part-1 - USHA Publication 12 Class Part - 1

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Question 19 Chapter 7 of +2-Part-1
19. (Realisation A/e/Partner's Capital A/e/Cash A/e) X, Y and Z Captal were in partnership sharing profits and losses as 3 :2 :1. The Balance sheet as at 31 December 2016 as follows :

Liabilities 
Rs.
Assets 
Rs.

Trade Creditors 
5,000
Cash in hand 
7,000

Provision for bad debts 
500
Sundry Debtors 
12,000

X’s Capitals A/c
15,000
Stock 
10,000

Y’s Capitals A/c 
10,000
Furniture 
6,500

Z’s Capitals A/c 
5,000

35,500
 
35,500

Question 20

Question 20 Chapter 7 of +2 Part-1 - USHA Publication 12 Class Part - 1

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Question 20 Chapter 7 of +2-Part-1
20. (Realisation A/c/Partner's Capital A/c/Cash A/c) Anju and Manju were trading an a firm sharing profits in the ratio of 9 :7 Firm's. Balance sheet as on December 31, 2015 is given below :

Liabilities 
Rs.
Assets 
Rs.

Capitals 
 
Bank 
5,000

Anju 
3,500
Debtors 
4,700

Manju 
2,750
Stock 
2,300

Anju’s current A/c 
300
Furniture 
50

Creditors 
12,000
Property 
2,000

Manju’s current A/c 
1,000

18,550
 
18,550

Firm was dissolved. Prope

Date	Particulars		Debit	Credit
a)	Bank A/c	Dr.	50,000
	To realisation A/c			50,000
	(Being goodwill sold )

b)	A’s capital A/c	Dr.	30,000
	To realisation A/c			30,000
	(Being goodwill taken over by A )

USHA Publication +2 Part 1 Solutions Chapter No. 7 - Partnership Accounts - VI (Dissolution of Partnership Firm)

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Question 01 Chapter 7 of +2 Part-1 - USHA Publication 12 Class Part - 1

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