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M.440 An Aid to Accountancy—CBSE XII

Dr. BANK ACCOUNT Cr.
Particulars ` Particulars `
To ? ? By ? ?
To Realisation A/c (Assets Realised) 1,24,910 By Realisation A/c—Expenses 1,860
To B’s Capital A/c (Cash brought in) 7,650 By A’s Capital A/c—Final Payment 1,12,070
1,37,080 1,37,080

Or
Rohit, Kunal and Sarthak are partners in a firm. They decided to dissolve their firm.
Pass necessary Journal entries for the following after assets (other than Cash and
Bank) and the third party liabilities have been transferred to Realisation Account:
(a) Kunal agreed to pay his wife’s loan of ` 6,000.
(b) Total Creditors of the firm were ` 40,000. Creditors of ` 10,000 were given a piece of
furniture costing ` 8,000 in full and final settlement. Remaining Creditors allowed
a discount of 10%.
(c) Rohit had given a loan of ` 70,000 to the firm which was duly paid.
(d) A machine which was not recorded in the books was taken over by Kunal at
` 3,000, whereas its expected value was ` 5,000.
(e) The firm had a debit balance of ` 15,000 in the Profit and Loss Account on the date
of dissolution.
(f) Sarthak paid realisation expenses of ` 16,000 out of his private funds, who was
to get a remuneration of ` 15,000 for completing dissolution and was to bear the
realisation expenses. (6)
16. Mohan and Mahesh were partners in a firm sharing profits in the ratio of 3 : 2. On
1st April, 2018, they admitted Nusrat, a physically challenged woman, as a partner in
the firm. The Balance Sheet of Mohan and Mahesh on that date was as under:

BALANCE SHEET OF MOHAN AND MAHESH as at 1st April, 2018
Liabilities ` Assets `
Creditors 2,10,000 Cash at Bank 1,40,000
Workmen Compensation Reserve 2,50,000 Debtors 1,60,000
General Reserve 1,60,000 Stock 1,20,000
Capital A/cs: Machinery 1,00,000
Mohan 1,00,000 Building 2,80,000
Mahesh 80,000 1,80,000
8,00,000 8,00,000

It was agreed that:
(i) The value of Building and Stock be appreciated to ` 3,80,000 and ` 1,60,000
respectively.
(ii) The liability of Workmen Compensation was determined at ` 2,30,000.
(iii) Nusrat brought in her share of goodwill ` 1,00,000 in cash.