Lalit and Madan were partners in a firm sharing profits and losses in the ratio of 7 : 3. On 31st March, 2024 their firm was dissolved. After transferring sundry assets (other than cash) and third-party liabilities to Realisation Account, the following transactions took place:
\begin{itemize}
\item[(i)] The firm had stock of \rupee2,00,000. 40% of this stock was taken over by a creditor of \rupee1,00,000 in full settlement of his claim. The remaining stock was sold at a loss of 10%.
\item[(ii)] The remaining creditors were paid \rupee2,10,000.
\item[(iii)] Plant and Machinery of \rupee5,00,000 were accepted by Mrs. Madan against the settlement of her loan of \rupee5,40,000.
\item[(iv)] Debtors of \rupee3,50,000 were sold to a debt collection agency who charged a commission of \rupee25,000.
\item[(v)] Investments of \rupee1,00,000 were taken over by the partners in their profit-sharing ratio.
\item[(vi)] Expenses of dissolution were \rupee8,000.
\end{itemize}
Pass necessary journal entries for the above transactions in the books of the firm.
Show Hint
Solution and Explanation
(i) Stock taken over by creditor: 40% of ₹2,00,000 = ₹80,000
Creditor’s claim = ₹1,00,000 → stock of ₹80,000 given → loss = ₹20,000 (credited to Realisation A/c)
Remaining stock = ₹1,20,000 → sold at 10% loss → sale value = ₹1,08,000
(ii) Remaining creditors paid = ₹2,10,000
(iii) Plant and Machinery worth ₹5,00,000 settled against loan of ₹5,40,000 → loss = ₹40,000
(iv) Debtors sold = ₹3,50,000, commission = ₹25,000 → amount received = ₹3,25,000
(v) Investments taken over in 7:3 ratio:
Lalit = \( \frac{7}{10} \times ₹1,00,000 = ₹70,000 \), Madan = ₹30,000
(vi) Dissolution expenses = ₹8,000 paid by firm
Journal Entries in the books of the firm:
| Particulars | Dr. (₹) | Cr. (₹) |
|---|---|---|
| Creditors A/c Dr. To Realisation A/c (Stock of ₹80,000 given to creditor, ₹20,000 loss) | 1,00,000 | 1,00,000 |
| Cash A/c Dr. To Realisation A/c (Remaining stock sold at 10% loss) | 1,08,000 | 1,08,000 |
| Realisation A/c Dr. To Cash A/c (Payment to remaining creditors) | 2,10,000 | 2,10,000 |
| Mrs. Madan’s Loan A/c Dr. To Realisation A/c To Capital A/c (Asset of ₹5,00,000 given in settlement of ₹5,40,000) | 5,40,000 | 5,00,000 40,000 |
| Cash A/c Dr. Realisation A/c Dr. To Debtors A/c (Debtors sold for ₹3,50,000, ₹25,000 commission) | 3,25,000 25,000 | 3,50,000 |
| Lalit’s Capital A/c Dr. Madan’s Capital A/c Dr. To Realisation A/c (Investments taken over in profit sharing ratio) | 70,000 30,000 | 1,00,000 |
| Realisation A/c Dr. To Cash A/c (Dissolution expenses paid by firm) | 8,000 | 8,000 |
Top Questions on Dissolution of Partnership Firms
Rishi, Manu and Komal were partners in a firm sharing profits and losses in the ratio of 3 : 4 : 5. On 31st March, 2024 their firm was dissolved. After transferring sundry assets (except cash in hand and cash at bank) and third party liabilities to realisation account, the following transactions took place:
(i) A creditor of ₹2,00,000 took over an old machine for ₹70,000 that had been completely written off and his balance was settled at a discount of 10%.
(ii) Remaining creditors of ₹8,00,000 agreed to take over stock of ₹6,00,000 in full settlement of their claim.
(iii) The remaining stock of ₹3,00,000 was sold at a loss of 30%.
(iv) Dissolution expenses amounting to ₹90,000 were paid by Komal.
(v) Saransh, an old customer whose account for ₹40,000 was written off as bad debt in the previous year, paid ₹36,000.
(vi) Loss on dissolution amounted to ₹2,40,000.
Pass necessary journal entries for the above transactions to close the books of Rishi, Manu and Komal at the time of dissolution of the firm.- CBSE CLASS XII - 2025
- Accountancy
- Dissolution of Partnership Firms
- Tushar, Mehta and Ghosh were partners in a firm sharing profits and losses in the ratio of 1 : 2 : 4. On 31st March, 2024 their firm was dissolved. After transferring sundry assets (other than cash in hand and cash at bank) and external liabilities to realisation account, the following transactions took place: \begin{enumerate} \item There was a debit balance of ₹77,000 in the profit and loss account, which was transferred to the capital accounts of the partners. \item The firm had investments of ₹4,00,000 whose market price was ₹4,20,000. The investments were taken over by the partners in their profit sharing ratio at market price. \item The book value of the debtors was ₹8,00,000 and the provision for bad debts was ₹40,000. Debtors were realised at 90% of the book value and a debtor of ₹5,000 which had been previously written off as bad debt paid the full amount. \item Ram Lal, a creditor of ₹2,00,000 took over furniture of book value of ₹2,50,000 in full settlement of his claim. The remaining creditors allowed a discount of 10% on their claim of ₹2,20,000. \item Expenses on realisation amounted to ₹50,000 which were paid by the firm. \item Gain on realisation amounted to ₹42,000. \end{enumerate} Pass necessary journal entries for the above transactions in the books of the firm.
- CBSE CLASS XII - 2025
- Accountancy
- Dissolution of Partnership Firms
From the following information of Jamna Ltd., prepare a Comparative Statement of Profit and Loss for the year ended 31st March, 2024.
Particulars 2022–23 (₹) 2023–24 (₹) Revenue from operations 16,00,000 20,00,000 Cost of revenue from operations 8,00,000 10,00,000 Other expenses 2,00,000 4,00,000
Tax Rate: $40%$- CBSE CLASS XII - 2025
- Accountancy
- Dissolution of Partnership Firms
Calculate the Operating Ratio from the following information:
Particulars Amount (₹) Revenue from Operations (Cash + Credit) 25,00,000 Purchases (Cash + Credit) 12,00,000 Carriage Inward 20,000 Salaries 1,45,000 Wages 85,000 Increase in Inventory 50,000 - CBSE CLASS XII - 2025
- Accountancy
- Dissolution of Partnership Firms
- Show the following items under major heads and sub-heads (if any) in the Balance Sheet of the company as per Schedule III, Part I of the Companies Act, 2013:
(a) Calls in advance
(b) Public deposits
(c) Intangible assets under development- CBSE CLASS XII - 2025
- Accountancy
- Dissolution of Partnership Firms
Questions Asked in CBSE CLASS XII exam
- Calculate \( \Lambda_m^0 \) for acetic acid and its degree of dissociation (\( \alpha \)) if its molar conductivity is 48.1 \( \Omega^{-1} \, \text{cm}^2 \, \text{mol}^{-1} \).
Given that
\( \Lambda_m^0 (\text{HC}) = 426 \, \Omega^{-1} \, \text{cm}^2 \, \text{mol}^{-1} \),
\( \Lambda_m^0 (\text{NaCl}) = 126 \, \Omega^{-1} \, \text{cm}^2 \, \text{mol}^{-1} \),
\( \Lambda_m^0 (\text{CH}_3\text{COONa}) = 91 \, \Omega^{-1} \, \text{cm}^2 \, \text{mol}^{-1} \).- CBSE CLASS XII - 2025
- Electrochemistry
If \[ A = \begin{bmatrix} 2 & -3 & 5 \\ 3 & 2 & -4 \\ 1 & 1 & -2 \end{bmatrix}, \] find \( A^{-1} \).
Using \( A^{-1} \), solve the following system of equations:
\[ \begin{aligned} 2x - 3y + 5z &= 11 \quad \text{(1)} \\ 3x + 2y - 4z &= -5 \quad \text{(2)} \\ x + y - 2z &= -3 \quad \text{(3)} \end{aligned} \]
- CBSE CLASS XII - 2025
- CBSE Compartment XII - 2025
- Matrices and Determinants
- Define Fuel cell
- CBSE CLASS XII - 2025
- Electrochemistry
‘सूरदास की झोंपड़ी’ से उद्धृत कथन “हम सो लाख बार घर बनाएँगे” के सन्दर्भ में स्पष्ट कीजिए कि जीवन में आगे बढ़ने के लिए सकारात्मक सोच का होना क्यों अनिवार्य है।
- CBSE CLASS XII - 2025
- गद्यांश पर आधारित प्रश्न
शिवालिक की सूखी नीसर पहाड़ियों पर मुस्कुराते हुए ये वृक्ष खड़ेताली हैं, अलमस्त हैं~।
मैं किसी का नाम नहीं जानता, कुल नहीं जानता, शील नहीं जानता पर लगता है,
ये जैसे मुझे अनादि काल से जानते हैं~।
इनमें से एक छोटा-सा, बहुत ही भोला पेड़ है, पत्ते छोटे भी हैं, बड़े भी हैं~।
फूलों से तो ऐसा लगता है कि कुछ पूछते रहते हैं~।
अनजाने की आदत है, मुस्कुराना जान पड़ता है~।
मन ही मन ऐसा लगता है कि क्या मुझे भी इन्हें पहचानता~?
पहचानता तो हूँ, अथवा वहम है~।
लगता है, बहुत बार देख चुका हूँ~।
पहचानता हूँ~।
उजाले के साथ, मुझे उसकी छाया पहचानती है~।
नाम भूल जाता हूँ~।
प्रायः भूल जाता हूँ~।
रूप देखकर सोच: पहचान जाता हूँ, नाम नहीं आता~।
पर नाम ऐसा है कि जब वह पेड़ के पहले ही हाज़िर हो ले जाए तब तक का रूप की पहचान अपूर्ण रह जाती है।- CBSE CLASS XII - 2025
- गद्यांश पर आधारित प्रश्न