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22. Archana, Vandana and Artiwere partners in a firm sharing profits and
losses in the ratio of 5:3: 2. Their Balance Sheet on 31t March, 2023
was as follows :

Balance Sheet of Archana, Vandana and Artias at 31st March, 2023

Amount Amount
Liabilities Assets
Capitals : Investments 80,000
Archana 80,000 Plant 1,00,000
Vandana 70,000 Stock 40,000
Arti 60,0002,10,000 Debtors 50,000
General Reserve 30,000 Cash at Bank 30,000
Creditors 60,000
3,00,000 3,00,000
The firm was dissolved on the above date.
(1) Assets were realised as follows :
Debtors 40,000
Stock 50,000
Plant 60,000
(ii) 25% ofthe Investments were taken over by Vandana at 18,000.
Remaining Investments were taken over by Archana at 10% less
than its book value.
(ii) Expenses of realisation 20,000 were paid by Arti.
Prepare Realisation Account.
22. Q. Archana, Vandana and Arti were partners in a firm.

Ans.
Dr Realisation A/e Cr

Particulars Amount Particulars Amount

To Investments A/c 80,000 By Creditors A/e (2) 60,000

To Plant Alc 1,00,000
To Stock (4) 40,000 By Bank Ae (4)
To Debtors Ale 50,000 Debtors 40,000
Stock 50,000
To Bank (4) 60,000 Plant 60,000 1,50,000
To Arti's Capital Ae (4) 20,000
By Vandana's capital A/e () 18,000
By Archana's capital Ae () 54,000

By Loss transferred to Partners'

Capital AVe: (2)
Archana 34,000
Vandana 20,400
Arti 13,600 68,000 4

3,50,000 3,50,000 marks

24. Nandu, Bandu and Chandu were partners in a firm. On 318t March, 2023
they decided to dissolve the firm. Pass necessary journal entries for the
following transactions after the various assets (other than cash and bank)
and outside liabilities have been transferred to Realisation Account : 6
(i) Stock of 1,40,000 was taken by Nandu at a discount of 30%.
(Gi) Creditors to whom the firm owed 40,000 accepted stock at
4,000 and the balance amount was paid to them by a cheque.
(iii) An old computer which had been written off completely from the
books was sold for 4,000, whereas its estimated market value
was 10,000.
(iv) Chandu had given a loan of 1,00,000 to the firm, which was paid
to him through a cheque.
(v) 24,000 were recovered from a debtor which was written off as
bad debt in the previous yea.
(vi) Bandu was appointed to look after the dissolution work for which
he was allowed a remuneration of 26,000. Bandu agreed to bear
the dissolution expenses. Actual dissolution expenses of 36,000
were paid by Bandhu.
24
Q. Nandu, Bandu and Chandu were partners.
Ans.
Books of Nandu, Bandu and Chandu
Journal
Date Particulars L.F Dr. Amnount Cr. Amount

(i) Nandu's Capital Alc Dr. 98,000

To Realisation A/c 98,000
(Stock taken over by Nandu at 30%
discount)
(ii) Realisation A/c Dr. 36,000
To Bank Alc 36,000
(Creditors paid by cheque)

(iii) Cash/Bank Alc Dr. 4,000

To Realisation A/c 4,000
(Old computer sold)

CBSE_Ms (2023-24) 67/2/1 Page 12 of 23

(iv) Chandu's Loan A/c Dr. 1,00,000

To Bank Alc 1,00,000
(Chandu's loan paid through cheque)
(v) CashBank A/c Dr. 24,000
To Realisation A/c 24,000
(Bad Debts previously written off
recovered)

(vi) Realisation A/e Dr. 26,000

To Bandu's Capital Ale 26,000 Ix6
(Remuneration allowed to Bandu for -6 marks
carrying out dissolution work)
23. Abhay, Bikram and Chris were partners in a firm sharing profits and
losses equally. They decided to dissolve their partnership firm on
31st March, 2023. The firm's Balance Sheet on the date of dissolution was
as follows :

Balance Sheet of Abhay, Bikram and Chris as at 31st March, 2023

Amount Amount
Liabilities () Assets
(3)
Plant and
Capital :
Machinery 80,000
Abhay 68,000 Furniture 45,000
Bikram 1,00,000 Motor Car 1,25,000
Chris 77,000 2,45,000 Stock 30,000
Creditors 1,20,000 Debtors 70,000
Cash at Bank 15,000
3,65,000 3,65,000

The following information is available :

(i) Plant and Machinery was taken over by Abhay at an agreed
valuation of 75,000.
(iü) Furniture realised 40,000.
(iii) Motor car was taken over by Bikram for 1,30,000.
(iv) Debtors realised 10% less.
(v) 10% of the stock was taken over by Chris for 4,500. The
remaining stock was sold for 30,000.
(vi) Realisation expenses amounted to 5,000.
Prepare Realisation Account. 6
23 Q. Abhay, Bikram and Chris were partners

Ans.

Dr. Realisation Account Cr.

Particulars AmountParticulars Amount
()
To Sundry Assets t/f: (1/2) By Sundry Liabilities t/f: (1/2)
Plant & Machinery 80,000 Creditors 1.20,000 1,20,000
Furniture 45,000
Motor Car 1,25,000 By Abhay's Capital A/c (P&M) (1/2) 75,000
Stock 30,000 By Bikram's Capital A/c (Car) (1/2) 1,30,000
Debtors 70,000 3,50,000By Chris'sCapital A/c (stock) (1/2) 4,500

By Bank A/c (1%)

To Bank A/c: (1) Debtors 63,000
Expenses 5,000 Stock 30,000
Creditors 1,20 000 1,25,000 Furniture 40,000 1,33,000

By Loss transferred to Partners'

Capital A/c (1)
Abhay 4,166
Bikram 4,167
Chris 4,167 12,500

4,75,000 4,75,000
marks
25. Pass the necessary journal entries for the following transactions on the
dissolution of the partnership firm of Tina and Rina after the various
assets (other than cash and bank) and external liabilities have been
transferred to realisation account:
(i) There was an outstanding bill for repairs for which ? 20,000 were
paid.
(ii) The firm had stock of 80,000. Tina took over 50% of the stock at a
discount of 20% while the remaining stock was sold off for 52,000.
(iii) The firm had 100 shares of 10 each which were taken over by the
partners at market value of 20 per share in their profit sharing
ratio of 3:2.
(iv) Realisation expenses of ? 4,000 were paid by Rina.
(v) Tina had given a loan of 40,000 to the firm which was duly paid.
(vi) Rina agreed to pay off her husband's loan of ? 10,000 at a discount of
10%. 6
25. Q. Pass the
Ans.
Books of Tina and Rina
Journal
LF Debit Credit
Date Particulars Amount Amount

(3) ()
() Realisation A/c Dr
20,000
To Bank/ Cash A/c 20,000
(An outstanding bill for repairs paid)

(ü) Tina's Capital A/c Dr

32,000
Cash /Bank A/c Dr
52,000
To Realisation A/c
(Stock partially taken over by Tina, a 84,000
partner and partially realized.)

(iüi) Tina's Capital Ac Dr

1200
Rina's Capital A/c D 800
To Realisation A/c
(Shares acquired by partners in 2,000
their profit sharing ratio)

16

(iv) Realisation A/c Dr

4,000
To Rina's Capital A/c
(Realisation expenses paid by Rina
4,000
credited to her capital account)

(v) Tina's Loan Ac Dr

40,000
To Bank/ Cash A/c
(Partner's Loan paid)
40,000

(vi) Realisation A/c Dr 9,000

To Rina's Capital A/c
1x6
(Loan taken over by Rina, a partner) 9,000
=6
Marks
25. Pass the necessary journal entries for the following transactions on
dissolution of the firm of Avyan and Shruti after various assets (other
than cash) and third party liabilities have been transferred to Realisation
Account:
(i) Sundry creditors amounting to 40,000 were settled at a discount of
10%.

(ii) An unrecorded computer of 50,000 was taken over by Shruti.

(iii) Creditors of 5,000 agreed to take over debtors of 8,000 in full
settlement of their claim.
(iv) The firm had a debit balance of 42,000 in the Profit and Loss
Account on the date of dissolution.
(v) There was an old furniture with the firm which had been written off
completely from the books. This was sold for 9,000.
(vi) Realisation expenses amounting to 11,000 were paid by Shruti. 6
25 Q. Pass the necessary journal entries....

Ans.

Books ofAyyan and Shruti

Journal
Date Particulars LLF Dr. Amount Cr. Amount

i) Realisation Alc Dr. 36,000

To Cash/Bank A/e 36,000
(Creditors settled at a discount of 10%)

Page 14 of 25

(ii) Shruti's Capital A/c Dr 50,000

To Realisation A/c 50.000
(Unrecorded computer taken over by Shruti) 1 x6

(iii) No entry
(iv) Avyan's Capital A/c Dr. 21,000
Shruti's Capital A/c Dr. 21,000
To Profit and Loss Alc 42.000 6
(Debit balance of Profit and Loss Account marks
distributed among the partners)

(v) Bank/ Cash Alc Dr. 9,000

To Realisation A/c 9,000
(Old furmiture which had been written off,
sold)

(vi) Realisation A/e Dr. 11,000

To Shruti's Capital A/e 11,000
(Expenses of realisation paid by Shruti)
25. Aadish and Shreyansh were partners in a firm sharing profits and losses
in the ratio of 3 : 2. On 31st March, 2022 their Balance Sheet was as
follows:
Balance Sheet of Aadish and Shreyansh as at 31st March, 2022
Amount Amount
Liabilities Assets

Creditors 90,000 Cash at Bank 20,000

Mrs. Aadish's Loan 30,000 Stock 24,000
Shreyansh's Loan 30,000 Investments 30,000
General Reserve 45,000 Debtors 20,000
Less: Provision for
Capitals :
Doubtful Debts, 2,000 18,000
Aadish 1,00,000 Plant 1,00,000
Shreyansh 97,000 1,97,000 Advertisement Suspense account 2,00,000
3,92,000 3,92,000

The firm was dissolved on 31st March, 2022 on the following terms:
(i) Debtors realised 17,000 and plant realised 10% more than the
book value.

(ii) Aadish promised to pay Mrs. Aadish's loan and took away stock at
20,000.

(iii) Shreyansh took away half of the investments at a discount of 10%.

Remaining investments realised 4,500.
3(iv) Creditors were paid off at a discount of 10%.

(v) Expenses of realisation amounted to 7,000.

Prepare Realisation Account. 6
25 Q. Aadish and Shreyansh........

Ans.

Books of Aadish and Shreyansh

Dr. Realisation Alc Cr

Particulars Particulars )
To Sundry Assets: By Sundry Liabilities:
Stock 24,000 Creditors 90,000
Investment 30,000 Mrs. Aadish's Loan 30,000
Debtors 20,000 Provision for Doubtful 2,000 1,22,000
Plant 1,00,000 1,74,000Debts
By Cash Alc / Bank Alc: ½+1+
Debtors 17,000 1+ ½+
To Aadish's Capital Alc 30,000 Plant 1,10,000
(Mrs. Aadish's loan) 1+ ½+
Investment 4.500 1,31,500
To Cash Alc/ Bank Alc:
1 1+½

Creditors 81,000
Realisation Expenses 7.000 88,000 By Aadish's Capital Alc 20,000
(Stock)

By Shreyansh's Capital Ale 13,5001

(Investment)

14

By loss transferred to Partners'

Capital A/c:
Aadish 3,000
Shreyansh 2.0005,00
2,92,000 2,92,000 6

marks
23. Pass the necessary journal entries for the following transactions on the
dissolution of the partnership firm of Tina and Rina after various assets
(other than cash) and external liabilities have been transferred to
Realisation Account :
i) An unrecorded asset of 18,000 was taken over by Tina at 16,000.
(i) Rina agreed to pay her brother's loan of ? 23,000.
(iii) Stock of 30,000 was taken over by a creditor of 40,000 in full
settlement.
(iv) Expenses of dissolution 40,000 were paid by Rina.
(v) Creditors were paid ? 18,800 in full settlement of their account of
20,000.
(vi) Tina's loan of 15,000 was paid through a cheque. 6
23. 0. Pass the necessary.
Ans. Books of Tina and Rina
Journal
LF Debit Credit
Date Particulars Amount Amount
() ()
(i)Tina's Capital Ale D 16,000
To Realisation A/c 16,000
(An unrecorded asset taken over by
Tina, a partner)

(i)Realisation A/c Dr 23,000

To Rina's Capital Ae 23,000
(Loan taken over by Rina, a partner) lx 6
=6 Marks
(iii) No Entry

(iv) Realisation Alc Dr

40,000
To Rina's Capital A/c
(Dissolution expenses paid by Rina 40,000
credited to her capital account)

(v) Realisation A/c Dr

18,800
To Bank/ Cash Alc
(Creditors paid in full settlement of 18,800
their account)

(vi) Tina's Loan A/e D

15,000
To Bank Alc 15,000
(Settlement of partner's Loan)
21. Ravi, Kavi and Chand were partners sharing profits in the ratio of
5:3:2. On 31st March, 2022, their Balance Sheet was as follows :

Balance Sheet of Ravi, Kavi and Chand as on 31st March, 2022

Amount Amount
Liabilities Assets

Sundry Creditors 70,000 Land and Building 3,50,000

Chand's Loan 20,000 Stock 3,00,000
Mrs. Chand's Loan 20,000 Debtors 2,00,000

Capitals : Less provision 10,000 1,90,000

Ravi 4,00,000 Cash 70,000

Kavi 3,00,000
Chand 1,00,000 8,00,000

9,10,000 9,10,000

The firmn was dissolved on the above date.

(i) Land and Building and Stock were sold for 6,00,000. Debtors
were realised at 10% less than the book value.

(ii) Mrs. Chand's loan was settled by giving her a computer of 22,000
not recorded in the books.

(iii) Ravi paid off one of the creditors 20,000 in settlement of his
amount of 30,000.

(iv) Remaining creditors were paid in cash.

Prepare Realisation Account. 4

21. Q. Ravi, Kavi and Chand were partners sharing...
Ans
Dr Realisation A/e Cr
Particulars Amount Particulars Amount

To Land & Building A/e 3,50,000 By Provision for

Doubtful Debts A/e 10,000
To Stock Ale () 3,00,000
To Debtors A/c 2,00,000 By Creditors Ale ) 70,000
By Mrs. Chand's Loan 20,000
To Ravi's Capital A/c (4) 20,000
To Cash A/c () 40,000 By Cash Alc ()
Land & Building
and stock 6,00,000
Debtors 1.80.000 7,80,000

By Loss transferred to
Partners' Capital A/c: (1)
Ravi 15,000
Kavi 9,000 =4
30,000
Chand 6.000 marks

9,10,000 9,10,000
24. Pass the necessary journal entries for the following transactions on
dissolution of the firm of Varun and Vivek after various assets (other than
cash) and outside liabilities were transferred to Realisation Account: 6
(i) Varun paid creditors 18,500 in full settlement of their claim of
20,000.
(ii) Vivek agreed to pay his wife's loan of 70,000.
(iii) The firmn had unrecorded investments of 2,00,000, which were
sold at a loss of 20%.
(iv) The firm had stock of 1,00,000. Varun took over the stock at a
discount of 10%.
(v) Reema, a debtor whose account for 2,000 was written off as a
bad debt in the previous year, paid 70% of the amount.
(vi) Expenses of realisation 4,900 were paid by partner, Vivek.
24
Q. Pass the necessary journal entries for...
Ans.

Books of Varun and Vivek

Journal
Date Particulars L.F Dr. Amount Cr. Amount

()Realisation Alc Dr. 18,500

To Varun's Capital Alc 18,500
(Payment of creditors by Varun)
(ii)Realisation A/c Dr. 70,000
To Vivek's Capital A/e 70,000
(Wife's loan taken over by Vivek)

(iii)Cash/Bank A/c Dr. 1,60,000

To Realisation Alc 1,60,000
(Realisation of unrecorded investments)

(iv)Varun's Capital Alc Dr. 90,000

To Realisation A/c 90,000
(Stock taken over by Varun at 10%
discount)

(v)Cash/Bank Alc Dr. 1,400

To Realisation Alc 1,400
(Bad Debts recovered)
(vi)Realisation A/c Dr. 4,900
To Vivek's Capital Alc 4,900
Ix6
(Expenses of realisation paid by Vivek) =6
Marks
25. C, D, E were partners in a firm sharing profits in the ratio of 3:1:1.
Their Balance Sheet as at 31st March, 2022 was as follows :
Balance Sheet of C, D and E as at 31st March, 2022
Amount Amount
Liabilities Assets
)
Capitals : Machinery 3,20,000
C- 4,00,000 Investments 3,00,000
D- 2,00,000 Stock 2,00,000
E- 100.000 7,00,000 Debtors 1,00,000
C's Loan 1,20,000 Cash at Bank 2,00,000
Sundry Creditors 1,00,000
Bills payable 2,00,000
11,20,000 11,20,000
On the above date the firm was dissolved due to certain disagreement
among the partners :
() Machinery of 3,00,000 were given to creditors in full settlement of
their account and remaining machinery was sold for 10,000.
(i) Investments realised 2,90,000.
(iii) Stock was sold for 1,80,000.
(iv) Debtors for 20,000 proved bad.
(v) Realisation expenses amounted to 10,000.
Prepare Realisation Account. 6
25 Q. C, Dand Ewere partners

Ans.

Dr. Realisation Account Cr.

Particulars Amount Particulars Amount

To Machinery A/c (1) 3,20,000By Creditors A/c (1/2) 1,00,000

To Investments A/c 3,00,000By Bills Payable A/c 2,00,000
To Stock A/c 2,00,000 By Bank A/c (machinery) 10,000
To Debtors A/c 1,00,000 By Bank A/c(investments) 2,90,000
To Bank A/c (expenses) (1/2) 10,000 By Bank A/c (stock) (2) 1,80,000
To Bank A/c (bills payable) (1) 2,00,000 By Bank A/c (debtors) 80,000
By Partners' Capital A/c (loss)
C 1,62,000
D 54,000
E 54,000 (1) 2,70,000
11,30,000 11,30,000 6
marks