[ISC] Q. 16 solution of Dissolution of Partnership Firm Chapter TS Grewal Book Class 12 (2022-23)

Are you looking for the solution to Question number 16 of the Dissolution of Partnership Firm Chapter of TS Grewal Book 2022-23 Edition for the ISC Board?

Atul and Basu are in partnership sharing profits and losses in the ratio of 3 : 2. On 31st March, 2022, they decided to dissolve the firm and the Balance Sheet of the firm on this date is as follows:

In order to give effect to the above decision, draw up the Realisation Account, Partner’s Capital Accounts and the Bank Account after taking the following into consideration:

(i) Assets realised as follows: Stock – ₹ 45,000; Machinery 20% less than book value, Debtors ₹ 35,000. Land and Building ₹ 30,000 more than the book value.

(ii) Atul took investments at an agreed value of ₹ 15,000.

(iii) Creditors agreed to accept 5% less.

(iv) Atul, who carried out the dissolution was to be paid ₹ 1,200 (including expeses). Realisation expenses were ₹ 1,200 which were paid by the firm.

(v) There was an old computer in the firm which had been written off completely from the books. It is now sold for ₹ 5,000.

Solution:-

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