EDUNIQUE TUTORIALS

MARKS: 25 TOPIC: DISSOLUTION OF PARTNERSHIP TIME: 45 MINS

Q1 The following was the Balance Sheet of X, Y and Z as at 28.2.2017:

The firm was dissolved on the above date on the following terms:

i. Debtors realized ₹ 29,000 and creditors and bills payable were paid at a discount of 10%
ii. Stock was taken over by X for ₹ 17,000 and furniture was sold to K for ₹ 20,000
iii. Land and Building was sold for ₹ 2,98,000
iv. G's loan was paid by a cheque of the same amount.
v. Compensation to workmen paid by the firm amounted to ₹ 15,000

Prepare Realisation Account, Capital Accounts and Bank Account.

Q2 P, Q and R were partners in a firm sharing profits in the ratio of 1 : 2 : 2. Their Balance sheet as
at 31st March, 2018 was as follows:

Partners agreed to dissolve the firm on that date. You are given the following information about dissolution:

a. Office Equipment was accepted by a creditor for ₹ 7,000 in full settlement. The remaining creditors
were paid in full by cheques.
b. Assets realised as follows:

Land and Buildings ₹1,29,000

Stock 40,000
Accounts Receivable 15,000

c. Other liabilities were paid in full.

d. Dissolution expenses amounted to ₹ 3,000.

You are required to prepare Realisation Account, Bank Account and Capital Accounts of the Partners.
 EDUNIQUE TUTORIALS
Q3 The following is the Balance Sheet of A, B and C, as at 31st March, 2018:

The profit and loss sharing ratios of the partners are 3 : 2 : 1. At the above date, partners decide to dissolve
the firm, The assets realised were as follows:

i. Bills Receivable were realised at a discount of 5%. Debtors were all good Stock realised
₹ 32,000. Land and Buildings realised at 40% higher than the book value.
ii. Furniture was sold for ₹ 6,000 by auction and auctioneer's commission amounted to 300.
iii. Typewriters were taken over by A for an agreed valuation of ₹ 5,000.
iv. Investments were sold in the open market at a price of ₹ 25,000, for which a commission of 2% was
paid to the broker.
v. Creditors agreed to accept 10% less. All other liabilities were paid off at their book value.
vi. The firm retrenched their employees three months before the dissolution of the firm and the. firm had
to pay ₹ 25,000 as compensation. 'This liability was not appearing in the above Balance Sheet.

Close the books of the firm by preparing Realisation Account, Partner's Capital Accounts, and Bank
Account.

----ALL THE BEST----