[ISC] Q. 7 Dissolution of Partnership Firm Solution TS Grewal Class 12 (2024-25)
Solution to Question number 7 of the Dissolution of Partnership Firm Chapter of TS Grewal Book 2024-25 Edition for the ISC Board.
Desh, Prem and Azad carrying on business and sharing profits and losses in the ratio of 2 : 2 : 1, dissolved their firm as at 31st March, 2022 on which date their Balance Sheet was as follows:
| Liabilities | ₹ | Assets | ₹ | |
| Sundry Creditors Bills Payable Bank Loan General Reserve Investments Fluctuation Reserve Capital A/cs: Desh Prem Azad | 41,500 20,000 40,000 50,000 40,000 75,000 75,000 15,000 | Cash at Bank Stock Debtors Less: PDD Investments Premises | 50,000 2,500 | 22,500 80,000 47,500 55,000 1,51,500 |
| 3,56,500 | 3,56,500 |
Following transactions took place at the time of dissolution:
(i) A bill for ₹ 5,000 received from Mohan discounted from bank is not met on maturity. Mohan proved insolvent and a dividend of 50% was received from his estate.
(ii) The assets except Cash at Bank and Investments were sold to a company which paid ₹ 3,25,000 in cash. The Investments were sold and ₹ 56,500 were received.
(iii) Sundry Creditors (including Bills Payable) were paid ₹ 57,500 in full settlement.
(iv) Realisation Expneses were ₹ 15,000.
Prepare Realisation Account, Partner’s Capital Accounts and Bank Account.
Solution:-
