[CBSE] Q 20 DK Goel Dissolution of a Partnership Firm Solutions Class 12 (2024-25)
Solution of Question number 20 of Dissolution of a Partnership Firm chapter 5 of DK Goel Class 12 CBSE (2024-25)
Q. 20 (A) Following is the Balance Sheet of Deepak and Jyoti, who were sharing profit and losses in the ratio of 3 : 2, as at March 31, 2024:-
| Liabilities | ₹ | Assets | ₹ |
| Creditors | 38,000 | Cash | 1,500 |
| Mrs. Deepak’s Loan | 10,000 | Bank | 10,000 |
| Bank Loan | 15,000 | Debtors 20,000 Less: Provision for Doubtful Debts 1,000 | 19,000 |
| Capital A/cs: Deepak Jyoti | 10,000 8,000 | Stock | 12,000 |
| Current A/cs: Deepak Jyoti | 2,000 500 | Furniture | 6,000 |
| 83,500 | Plant | 30,000 | |
| P & L A/c (Dr. Balance) | 5,000 | ||
| 83,500 | 83,500 |
The firm was dissolved on that date and the following arrangements were made:-
(I) Assets realised as follows: Debtors ₹ 18,000; Furniture ₹ 5,500; Plant ₹ 32,000.
(ii) Deepak agreed to take over stock in full settlement of his wife’s loan.
(iii) Creditors were paid at 2% discount and Bank Loan was discharged along with interest due for six months @ 10% p.a. and
(iv) Expenses of realisation amounted to ₹ 1,800.
Show the necessary ledger accounts to close the books of the firm.
[Ans. Loss on Realisation ₹ 3,290; Final Payments : Deepak ₹ 7,026 and Jyoti ₹ 5,184; Total of Cash/Bank A/c ₹ 67,000.]
Solution:-
Hint:
Interest on capital will not be allowed, because there is loss in the business.
Q. 20(B) A, B and C sharing profits in the proportion of 3 : 2 : 1 agreed upon dissolution of their partnership firm on 31st March, 2024 on which date their balance sheet was as under:
| Liabilities | ₹ | Assets | ₹ |
| Capital A/cs: A B | 40,000 20,000 | Machinery | 40,500 |
| Mrs. A’s Loan | 10,000 | Stock-in-trade | 7,550 |
| Creditors | 18,500 | Investments | 20,000 |
| Investments Fluctuation Fund | 6,000 | Accrued Income | 830 |
| Debtors 9,300 Less: Provision for Doubtful Debts 600 | 8,700 | ||
| Current A/c – C | 11,500 | ||
| Cash at Bank | 5,420 | ||
| 94,500 | 94,500 |
The investments are taken over by A for ₹ 17,500. A agrees to discharge his wife’s loan. B takes over all the stock at ₹ 7,000 and debtors amounting to ₹ 5,000 at ₹ 4,000. Machinery is sold for ₹ 67,000. The remaining debtors realise 50% of book value. The expenses of realisation amount to ₹ 600.
It is found that an investment not recorded in the books is worth ₹ 3,000 and it is taken over by one of the creditors at this value.
Show the necessary ledger accounts on completion of the dissolution of firm.
[Ans. Gain on realisation ₹ 28,470; Cash brought in by C ₹ 6,755; Payment to A ₹ 46,735 and B ₹ 18,490. Total of Bank A/c ₹ 81,325.]
Solution;-
Notes:-
(1) C’s Current A/c appears on the assets side, which means that is has a debit balance. As such, it will be transferred to the Debit Side of C’s Capital Account.
(2) Accrued income will not be realised.
