[CBSE] Q 8 DK Goel Dissolution of a Partnership Firm Solutions Class 12 (2024-25)
Solution of Question number 8 of Dissolution of a Partnership Firm chapter 5 of DK Goel Class 12 CBSE (2024-25)
Q. 8 (A) Pritam and Naresh decided to dissolve their firm on September 30, 2023, when their Balance Sheet stood as follows:
| Liabilities | ₹ | Assets | ₹ |
| Capital Accounts: Pritam Naresh | 40,000 20,000 | Cash at Bank | 400 |
| Loan Accounts: Naresh Mrs. Pritam | 14,000 10,000 | Stock-in-Trade | 21,500 |
| Sundry Creditors | 36,000 | Bills Receivable | 8,800 |
| Outstanding Rent | 500 | Sundry Debtors 45,000 Less: Provision for Bad Debts 1,500 | 43,500 |
| Furniture | 3,000 | ||
| Plant & Machinery | 23,000 | ||
| Goodwill | 20,000 | ||
| Prepaid Insurance | 300 | ||
| 1,20,500 | 1,20,500 |
The assets were realised as follows: Stock ₹ 20,000; Bills Receivable ₹ 3,800; Furniture ₹ 5,100; Plant & Machinery ₹ 35,000; Sundry Debtors at 10% less than book value.
Sundry Creditors allowed a discount of 5%. Pritam agreed to pay his wife’s loan. Naresh agreed to pay outstanding rent. Expenses on dissolution came to ₹ 800.
Pritam and Naresh shared profits and losses in the ratio of their capitals. Accounts were finally settled.
Prepare Journal Realisation Account, Capital Accounts and Bank Account.
[Ans. Loss on Realisation ₹ 14,700; Cash paid to Pritam ₹ 40,200 and Naresh ₹ 15,600; Total of Bank A/c ₹ 1,04,800.]
Solution:-
Hint: Goodwill and Prepaid Insurance will be debited to Realisation A/c and no further entry will be made in respect of these items.
Q. 8 (B). Mrs. Rita Chowdhary and Miss Shobha are partners in a firm, ‘Fancy Garments Exports’ sharing profits and losses equally. On 1st April, 2024, the Balance Sheet of the firm was as follows:
| Liabilities | ₹ | Assets | ₹ |
| Sundry Creditors | 75,000 | Bank | 36,000 |
| Bills Payable | 30,000 | Stock | 75,000 |
| Mr. Chowdhary’s Loan | 15,000 | Book Debts 66,000 Less: Provision for Doubtful Debts 6,000 | 60,000 |
| Reserve Fund | 24,000 | Plant & Machinery | 45,000 |
| Mrs. Rita Chowdhary’s Capital | 90,000 | Land & Buildings | 48,000 |
| Miss Shobha’s Capital | 30,000 | ||
| 2,64,000 | 2,64,000 |
The firm was dissolved on the date given above. The following transactions took place:
(i) Mrs. Rita Chowdhary undertook to pay Mr. Chowdhary’s Loan and took over 50 percent of stock at a discount of 20 percent.
(ii) Book-debts realised ₹ 54,000; balance of the stock was sold off at a profit of 30 percent on cost.
(iii) Sundry Creditors were paid out at a discount of 10 percent. Bills Payable were paid in full.
(iv) Plant and Machinery realised ₹ 75,000 and Land and Buildings ₹ 1,20,000.
(v) Mrs. Rita Chowdhary took over the goodwill of the firm at a valuation of ₹ 30,000.
(vi) Realisation expenses were ₹ 5,250.
Show the Realisation Account, Bank Account and Partner’s Capital Accounts in the books of the firm.
[Ans. Gain on Realisation ₹ 1,32,000; Final Payments :- Rita ₹ 1,23,000 and Shobha ₹ 1,08,000, Total of Bank A/c ₹ 3,33,750.]
Solution:-
