[CBSE] Q 37 DK Goel Dissolution of a Partnership Firm Solutions Class 12 (2024-25)

Solution of Question number 37 of Dissolution of a Partnership Firm chapter 5 of DK Goel Class 12 CBSE (2024-25)

Q. 37. Michael, Jackson and John were partners in a firm sharing profits in the ratio of 3 : 1 : 1. On 31st March, 2017, they decided to dissolve their firm. On that date their Balance Sheet was as follows:

Balance Sheet of Michael, Jackson and Johan
as at 31.3.2017

It was agreed that:

(I) Michael was to take over Furniture at ₹ 2,600 and Debtors amounting to ₹ 40,000 at ₹ 34,000 and the Creditors of ₹ 10,000 were to be paid by him at this figure.

(ii) Jackson was to take over all the stock in trade at ₹ 14,000 and some of the other Sundry Assets at ₹ 28,800 (being 10% less than book value).

(iii) John was to take over the remaining Sundry Assets at 90% of the book value and assumed the responsibility for the discharge of the loan.

(iv) The remaining debtors were sold to a debt collecting agency for 50% of the book value. The expenses of dissolution ₹ 600 were paid by John.

Prepare Realisation Account, Bank Account and Partner’s Capital Accounts.

[Ans. Loss on Realisation ₹ 12,800; Final payment to Michael ₹ 15,320 and to John ₹ 13,740; Amount brought in by Jackson ₹ 20,360; Total of Bank A/c ₹ 30,560.]

Solution:-

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