[CBSE] Q 21 DK Goel Dissolution of a Partnership Firm Solutions Class 12 (2024-25)
Solution of Question number 21 of Dissolution of a Partnership Firm chapter 5 of DK Goel Class 12 CBSE (2024-25)
Q. 21 (A). X, Y and Z were in partnership sharing profits and losses in the ratio of 7 : 2 : 1 and the Balance Sheet of the firm stood on 31st March, 2024, as under:-
Liabilities | ₹ | Assets | ₹ |
Creditors | 3,142 | Cash in Hand | 244 |
Provision for Depreciation on Machinery | 4,000 | Debtors | 1,746 |
Capital Accounts: X Y Z | 3,582 2,720 16,124 | Stock | 3,498 |
100 Shares in B Co. Ltd 60 Shares in C Co. Ltd. | 2,000 480 | ||
Patents | 7,600 | ||
Machinery | 6,000 | ||
Buildings | 5,000 | ||
Goodwill | 3,000 | ||
29,568 | 29,568 |
On 31st March, 2024, it was decided to dissolve the firm on the following terms:
(i) X is to take over the buildings at ₹ 7,300.
(ii) Y, who will continue with business, to take over Goodwill, Stock and Debtors at book values, Patents at ₹ 6,500 and Machinery at ₹ 1,500. He also agreed to pay the creditors.
(iii) Z agreed to take the shares in C Co. Ltd at ₹ 5 each.
(iv) The shares in B Co. Ltd. to be divided in profit sharing ratio.
Show the ledger accounts to record the dissolution.
[Ans. Gain on realisation ₹ 520; Cash brought in by X ₹ 4,754 and Y ₹ 10,678; Final Payment to Z ₹ 15,676: Total of Cash A/c ₹ 15,676.]
Solution:-
Q. 21 (B). Following is the balance sheet of P, Q and R who were sharing profits and losses in the ratio of 3 : 2 : 1.
Liabilities | ₹ | Assets | ₹ |
Bank Overdraft | 12,000 | Debtors 20,000 Less: Provision 1,200 | 18,800 |
Creditors | 70,000 | Stock | 40,000 |
Mrs. P’s Loan | 25,800 | 3,000 Shares in ‘A’ Ltd. | 30,000 |
Capital Accounts: P Q R | 1,20,000 95,000 5,000 | Motor Car | 75,000 |
Plant | 80,000 | ||
Advertisement Suspense A/c | 84,000 | ||
3,27,800 | 3,27,800 |
The firm was dissolved on that date and the following arrangements were made:
(i) Assets realised as follows: Debtors ₹ 15,000; Plant and 30% discount.
(ii) Stock was valued at ₹ 36,000 and this was taken over by P and Q equally.
(iii) Market value of the shares of A Ltd. is ₹ 16 per share. Half the shares were sold in the market and the balance half were taken over by P and Q in their profit sharing ratio.
(iv) A creditor for ₹ 50,000 took over Motor Car in full settlement of his claim and the balance of creditors were paid at a discount of 2%.
(v) Expenses of realisation amounted to ₹ 6,000. P agreed to discharge his wife’s Loan.
Prepare Journal entries and Ledger accounts.
[Ans. Loss on Realisation ₹ 44,400. R brings in ₹ 16,400; Final Payment to P ₹ 49,200 and Q ₹ 24,600. Total of Bank A/c ₹ 1,11,400.]
Solution:-
Note:
Bank Overdraft is short-term borrowing. It will be first transferred to the Cr. of Realisation A/c and then paid off.