[ISC] Q. 17 solution of Dissolution of Partnership Firm Chapter TS Grewal Book Class 12 (2022-23)

Are you looking for the solution to Question number 17 of the Dissolution of Partnership Firm Chapter of TS Grewal Book 2022-23 Edition for the ISC Board?

Harsh, Swarn and Tarun were in a partnership sharing profits and losses equally. Their Balance Sheet as at 31st March, 2022 was as under:

Investments had market value of ₹ 90,000 which were held to be sold to enable the settlement of accounts with partner’s estate in case of death of a partner the continuance of the firm.

On 1st April, 2022 It was decided that the firm would be dissolved, subject to the following adjustments:

(i) Investments were sold and amount realised was ₹ 90,000.

(ii) Machinery realised at 70% of the book value.

(iii) Furniture was taken by Tarun at a market value of ₹ 40,000.

(iv) Bills Receivable and Debtors had to be discounted at 5%.

(v) Stock comprised:

(a) Easily Marketable Items: 70% of the total inventory which were realised in full.

(b) Obsolete Items: 10% of the total inventory which had to be discarded.

(c) Rest of the items in the Stock realised 50% of their book value.

(vi) A liability of ₹ 2,500 which had not been recorded in the books of the firm had to be settled by the firm before its dissolution.

You are required to prepare Realisation Account.

Solution:-

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