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Dissolution

The document discusses the dissolution of partnerships, detailing the transfer of various accounts to the Realisation Account during the dissolution process. It includes examples of balance sheets, transactions, and journal entries related to the dissolution of specific partnerships. Additionally, it differentiates between the dissolution of a partnership and a partnership firm based on court intervention.

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Himanshu Shukla
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26 views5 pages

Dissolution

The document discusses the dissolution of partnerships, detailing the transfer of various accounts to the Realisation Account during the dissolution process. It includes examples of balance sheets, transactions, and journal entries related to the dissolution of specific partnerships. Additionally, it differentiates between the dissolution of a partnership and a partnership firm based on court intervention.

Uploaded by

Himanshu Shukla
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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Download as PDF, TXT or read online on Scribd
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Dissolution 2023

12. Which of the following will be transferred to Realisation


Account at the time of dissolution of firm ?
(i) Provision for Doubtful Debts
(ii) Partners
(iii) General Reserve
(iv) Goodwill

(a) (i) and (iv)


(b) (i), (ii) and (iv)
(c) (i), (iii) and (iv)
(d) (i), (ii) and (iii)

25. Aadish and Shreyansh were partners in a firm sharing


profits and losses in the ratio of 3 : 2. On 31 st March,
2022 their Balance Sheet was as follows :

Balance Sheet of Aadish and Shreyansh as at 31st


March, 2022
Amount Amou
Liabilities < Assets <
Creditors 90,000 Cash at Bank 20,0
30,000 Stock 24,0
Shreyansh Loan 30,000 Investments 30,0
General Reserve 45,000 Debtors 20,000
Less : Provision for
Capitals :
Doubtful Debts, 2,000 18,0
Aadish 1,00,000 Plant 1,00,0
Shreyansh 97,000 1,97,000 Advertisement Suspense account 2,00,0
3,92,000 3,92,0
The firm was dissolved on 31st March, 2022 on the following
terms :

(i) Debtors realised < 17,000 and plant realised


10% more than thebook value.

(ii) Aadish pr
< 20,000.

(iii) Shreyansh took away half of the investments at a


discount of 10%.Remaining investments realised
< 4,500.

(iv) Creditors were paid off at a discount of 10%.

(v) Expenses of realisation amounted to < 7,000.


Prepare Realisation Account.

2022
DISSOLUTION-2021
8. Rohan, Mohan and Sohan were partners sharing profits equally. At
the
time of dissolution of the partnership firm, Rohan’s loan to the firm
will
be : 1
(A) Credited to Rohan’s Capital Account.
(B) Debited to Realisation Account.
(C) Credited to Realisation Account.
(D) Credited to Bank Account. Dissolution2020
9. Name an item which is transferred to credit side of Realisation
Account at the time of dissolution of partnership firm, but does
not involve cash
payment. dissolution of partnership-2020

18. Pass the necessary journal entries for the following transactions on
the dissolution of the partnership firm of Tony and Rony after the
various assets (other than cash) and external liabilities have been
transferred to Realization Account :
(i) An unrecorded asset of < 2,000 and cash < 3,000 was paid
for liability of < 6,000 in full settlement.
(ii) 100 shares of < 10 each have been taken over by partners
at market value of < 20 per share in their profit sharing
ratio, which is 3 : 2.
(iii) Stock of < 30,000 was taken over by a creditor of < 40,000
at a discount of 30% in full settlement.
(iv) Expenses of realisation < 4,000 were to be borne by Rony.
Rony
used the firm’s cash for paying these expenses. Dissolution2020

Differentiate between Dissolution of Partnership and Dissolution


of a Partnership Firmon the basis of ‘Court’s Intervention.’
PATRNERSHIP DISSOLUTION -2019

Ankit, Bobby and Kartik were partners in a firm sharing profits


in the ratio 4 : 3 : 3. The firm was dissolved on 31-3-2018. Pass
the necessary Journal entries for the following transactions after
various assets (other than cash and bank) and third party
liabilities had been transferred to Realisation Account :
(i) The firm had stock of ` 80,000. Ankit took over 50% of the stock at
a discount of20% while the remaining stock was sold off at a profit
of 30% on cost.
(ii) A liability under a suit for damages included in creditors was
settled at ` 32,000as against only ` 13,000 provided in the books.
Total creditors of the firm were
` 50,000.
(iii) Bobby’s sister’s loan of ` 20,000 was paid off along with interest of ` 2,000.
(iv) Kartik’s Loan of ` 12,000 was settled at ` 12,500. ’ PATRNERSHIP
DISSOLUTION -2019

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