[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.

Here are the solutions of Dissolution of a Partnership Firm chapter 5 of DK Goel Class 12 CBSE (2024-25)

S.N	Questions
1	Question – 1
2	Question – 2
3	Question – 3
4	Question – 4
5	Question – 5
6	Question – 6
7	Question – 7
8	Question – 8
9	Question – 9
10	Question – 10

S.N	Questions
11	Question – 11
12	Question – 12
13	Question – 13
14	Question – 14
15	Question – 15
16	Question – 16
17	Question – 17
18	Question – 18
19	Question – 19
20	Question – 20

S.N	Questions
21	Question – 21
22	Question – 22
23	Question – 23
24	Question – 24
25	Question – 25
26	Question – 26
27	Question – 27
28	Question – 28
29	Question – 29
30	Question – 30

S.N	Questions
31	Question – 31
32	Question – 32
33	Question – 33
34	Question – 34
35	Question – 35
36	Question – 36
37	Question – 37
38	Question – 38
39	Question – 39
40	Question – 40

S.N	Questions
41	Question – 41
42	Question – 42
43	Question – 43
44	Question – 44
45	Question – 45
46	Question – 46
47	Question – 47
48	Question – 48
49	Question – 49
50	Question – 50

S.N	Questions
51	Question – 51
52	Question – 52
53	Question – 53
54	Question – 54
55	Question – 55
56	Question – 56
57	Question – 57
58	Question – 58
59	Question – 59
60	Question – 60