ACCOUNTANCY ASSIGNMENT - 7

CLASS XII

DISSOLUTION OF PARTNERSHIP FIRM

Q-1 What is meant by ‘Dissolution of a Partnership firm ?

Q-2 State any one point of difference between Realisation Account and

Revaluation Account .

Q-3 All partners wish to dissolve the firm . Yastin , a partner wants that her

loan of ` 2,00,000 must be paid off before the payment of capitals to

the partners . But , Amart , partner wants that capitals must be paid

before the payment of Yastin ‘s loan . You are required to settle the

conflict giving suitable reason .

Q-4 Rohit and Suresh are in partnership , sharing profits and losses in the

ratio of 2:3 . On March 31st 2005 , they agree to dissolve the business .

Pass necessary journal entries at the time of dissolution to record the

following:

(a) Realisation expenses amounted to ` 2,000 .

(b) Deferred revenue adverstising expenditure appeared at ` 60,000.

(c) P & L Account appearing on the assets side of the Balance sheet

At ` 30,000.

(d) An unrecorded asset of ` 3,000 was taken over by Suresh .

(e) Liablilities amounting to ` 24,000 , already transferred to Realisation

Account were settled at ` 22,000 .

(f) Loan to Rohit was adjusted through his capital Account ` 15,000 .
Q-5 Sanjay , Tarun and Vineet shared profits in the ratio of 2:2:1 .

On March 31, 2018 their Balance Sheet as follows :

Liabilities ` Assets `

Capital -- Plant 90,000

Sanjay 1,00,000 Debtors 60,000
Tarun 1,00,000 Furniture 32,000
Vineet 70,000 2,70,000 Stock 60,000
________ Investment 75,000
Creditors 80,000 Bills Receivable 36,000
Cash in Hand 32,000
Bills Payable 30,000 Advertisement Suspense
Expense 5,000
Workmen Compensation Fund 10,000
Goodwill 6,000
Provident Fund 6,000

3,96,000 3,96,000-
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On this date the firm was dissolved . Sanjay was appointed to realise the
assets . Sanjay was to receive 5 % commission on the sale of assets
(except cash ) and was to bear all expenses of realisation . Compensation on
account of workmen compensation is ` 6,000. Employees Retrenchment
compensation to be paid `15,000. There was a bill of ` 5,000 under discount
received from a debtor, A, who has been declared insolvent . 65% was realised
from A’s estate. The firm never allowed anybody to beat them in quality and
price.

Sanjay realized the assets as follows : Plant ` 75,000 ; Debtors ` 55,000;

Furniture ` 19,000 ; Stock 90 % of the book value ; Investment ` 76,000 and
Bills Receivable ` 34,000 . Expenses of realisation amounted to ` 4,800 .
Prepare Realisation Account , Capital Accounts of Partner and Cash Account
and identify the business value. .