[ISC] Q. 8 Dissolution of Partnership Firm Solution TS Grewal Book Class 12 (2026-27)

Solution to Question number 8 of the Dissolution of Partnership Firm Chapter of TS Grewal Book 2026-27 Edition for the ISC Board?

Nisha, Kamal and Vijay had an automobile spare parts business. Due to uncertain situation, the partners were unable to take collective decisions for the growth of business. As a result, firm has been in losses for the last 3 years. The partners decided to dissolve the firm.

Following transactions took place at the time of dissolution:

(i) Shiv, а creditor, to whom 6,000 were due, accepted office equipment at 4,000 and the balance was paid to him.

(ii) Investment, which appeared in the books at 1,00,000, half of it is taken by Mohan, a creditor. at 10% above the book value in settlement of his claim and the remaining half was sold in the market at a loss of 30%.

(iii) Loan of 50,000 advanced by Nisha to the firm was repaid.

(iv) Loss on realisation 30,000 was distributed among the partners equally.

Journalise the above transactions at the time of dissolution of the firm.

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