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  1. Chanda, Tara and Nisha were partners in a firm sharing profits and losses in the ratio of 3 : 2 : 1. They decided to dissolve the firm on 31st March, 2021. Pass necessary Journal Entries for the following transactions after all assets (other than cash and bank) and third party liabilities have been transferred to Realisation Account. (i) A typewriter completely written off from the books was sold for ₹ 9,000. (ii) Chanda took over stock worth ₹ 96,000 at ₹ 84,000. (iii) Nisha was to get remuneration of ₹ 42,000 for completing the dissolution process. (iv) Creditors of ₹ 23,500 took over all the investments at ₹ 10,000. Remaining amount was paid to them in Cash. (v) Sundry Creditors amounting to ₹ 40,000 were settled at a discount of 10%. OR
  2. Heena, Meena and Tina are partners in a firm sharing profits and losses equally. Their Balance Sheet on April 1st, 2020 was as follows : Balance Sheet of Heena, Meena & Tina as on 1st April, 2020
LiabilitiesAmount (₹)AssetsAmount (₹)
Bills Payable12,000Building40,000
Sundry Creditors18,000Machinery30,000
General Reserve12,000Furniture12,000
Capitals : Heena30,000Stock22,000
Meena30,000Debtors 20,000
Tina28,000Less : Provision for doubtful debts 1,00019,000
Bank7,000
1,30,0001,30,000

Tina retired from the firm on the above date and the following was agreed upon : (a) Building was to be appreciated by 20%. (b) Machinery was to be depreciated by ₹ 1,500. (c) Provision for doubtful debts was to be increased to ₹ 1,500. (d) Goodwill was valued at ₹ 21,000 on Tina's retirement and the same was to be treated without opening goodwill account. (e) The balance in Tina's Capital account will be transferred to her Loan account. Prepare Revaluation Account and Partners' Capital Accounts.

CBSECBSE Class XII Board 2022Subjective· 5mImportance★★★★★
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Part (a): Dissolution entries - typewriter sold 9,000; Chanda takes stock 84,000; Nisha remuneration 42,000; creditors 23,500 took investments 10,000 + paid 13,500; creditors 40,000 settled at 36,000.

Part (b): Revaluation profit Rs.6,000; Heena & Meena capitals Rs.32,500 each; Tina's Rs.41,000 to her Loan A/c.

Part (a)

When a creditor takes over an asset, only the net cash paid is recorded (no separate entry for the asset already in Realisation). See the journal in the short answer.

ParticularsDr (Rs.)Cr (Rs.)
Bank A/c Dr9,000
To Realisation A/c9,000
Chanda's Capital A/c Dr84,000
To Realisation A/c84,000
Realisation A/c Dr42,000
To Nisha's Capital A/c42,000
Realisation A/c Dr13,500
To Bank A/c13,500
Realisation A/c Dr36,000

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