Target Publications Pvt. Ltd.

Chapter 06: Dissolution of Partnership Firm

06 Dissolution of partnership firm

Solution to Practice Q.1.: In the Books of Firm
Realisation Account
Dr. Cr.
Amount Amount Amount Amount
Particulars Particulars
` ` ` `
To Sundry Assets A/c By Sundry Liability A/c
Stock 20,000 Sundry Creditors 42,000
Motor Van 10,000 Bills Payable 25,000 67,000
Machinery 18,000 By Cash A/c
Sundry Debtor 24,000 Stock 18,000
Furniture 12,000 Motor Van 70,000
Land & Building 60,000 1,44,000 Machinery 16,000
To Cash A/c Furniture 10,000
Sundry Creditors 42,000 Debtor 22,000
Bills Payable 25,000 Land & Building 72,000 2,08,000
Dissolution Expenses 2,000 69,000
To Partners Capital A/c
(Profit on Realisation)
Soni 31,000
Moni 31,000 62,000
2,75,000 2,75,000
Partner’s Capital Account
Dr. Cr.
Soni Moni Soni Moni
Particulars Particulars
` ` ` `
To Cash A/c 76,000 71,000 By Balance b/d 30,000 25,000
By General Reserve A/c 15,000 15,000
By Realisation A/c (Profit) 31,000 31,000
76,000 71,000 76,000 71,000
Cash Account
Dr. Cr.
Amount Amount
Particulars Particulars
` `
To Balance b/d 8,000 By Realisation A/c 69,000
To Realisation A/c 2,08,000 By Soni’s Capital A/c 76,000
By Moni’s Capital A/c 71,000
2,16,000 2,16,000
Solution to Practice Q.2.: In the Books of Firm
Realisation Account
Dr. Cr.
Amount Amount Amount Amount
Particulars Particulars
` ` ` `
To Sundry Assets A/c By Sundry Liability A/c
Sundry Debtors 45,000 Bank Loan 15,000
Land & Building 70,000 Creditors 32,000
Furniture 50,000 Bills Payable 8,000
Machinery 25,000 Outstanding Expenses 1,000 56,000
Stock 24,000 2,14,000
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Target Publications Pvt. Ltd. Std. XII (Commerce): Book-Keeping & Accountancy
To Bank A/c By Bank A/c
Bank Loan 15,000 Building 65,000
Creditors 26,000 Furniture 35,000
Bills Payable 8,000 Stock 20,000
Outstanding Expenses 1,000 Debtors 40,000 1,60,000
Realisation Expenses 1,000 51,000 By Piyush’s Capital A/c
Machinery 25,000
By Partners Capital A/c
(Loss on Realisation)
Piyush 16,000
Nathalal 8,000 24,000
2,65,000 2,65,000
Partner’s Capital Account
Dr. Cr.
Piyush Nathalal Piyush Nathalal
Particulars Particulars
` ` ` `
To Realisation A/c (Loss) 16,000 8,000 By Balance b/d 75,000 75,000
To Realisation A/c 25,000 − By Profit & Loss A/c 12,000 6,000
To Bank A/c 46,000 73,000
87,000 81,000 87,000 81,000
Bank Account
Dr. Cr.
Amount Amount
Particulars Particulars
` `
To Balance b/d 10,000 By Realisation A/c 50,000
To Realisation A/c 1,60,000 By Realisation A/c 1,000
By Piyush’s Capital A/c 46,000
By Nathalal’s Capital A/c 73,000
1,70,000 1,70,000
Journal Entries
Debit Credit
Date Particulars L.F.
` `
2012
Apr 1 Realisation A/c Dr. 2,14,000
To Sundry Assets A/c 2,14,000
(Being assets transferred to realisation A/c)
Apr 1 Sundry Liabilities A/c Dr. 56,000
To Realisation A/c 56,000
(Being liabilities transferred to realisation A/c)
Apr 1 Profit and Loss A/c Dr. 18,000
To Piyush’s Capital A/c 12,000
To Nathalal’s Capital A/c 6,000
(Being balance of profit and loss A/c distributed)
Apr 1 Bank A/c Dr. 1,60,000
To Realisation A/c 1,60,000
(Being building, furniture, debtors and stock realised)
Apr 1 Realisation A/c Dr. 50,000
To Bank A/c 50,000
(Being liabilities paid)

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Apr 1 Realisation A/c Dr. 1,000

To Bank A/c 1,000
(Being realisation expenses paid)
Apr 1 Piyush’s Capital A/c Dr. 25,000
To Realisation A/c 25,000
(Being machinery taken over)
Apr 1 Piyush’s Capital A/c Dr. 16,000
Nathalal’s Capital A/c Dr. 8,000
To Realisation A/c 24,000
(Being loss on realisation transferred to capital A/c)
Apr 1 Piyush’s Capital A/c Dr. 46,000
Nathalal’s Capital A/c Dr. 73,000
To Bank A/c 1,19,000
(Being cash paid on final settlement)
Total: 6,67,000 6,67,000

Solution to Practice Q.3.: In the Books of Firm

Journal Entries
Debit Credit
Date Particulars L.F.
` `
2012
Mar 31 Realisation A/c Dr. 40,000
To Debtors A/c 8,000
To Stock A/c 6,000
To Building A/c 22,000
To Furniture A/c 3,000
To Bills Receivable A/c 1,000
(Being Assets transferred to Realisation)
Mar 31 Creditors A/c Dr. 4,600
Bills Payable A/c Dr. 1,400
To Realisation A/c 6,000
(Being Liabilities transferred to Realisation)
Mar 31 Reserve Fund A/c Dr. 5,000
To Anandrao’s Capital A/c 2,500
To Baburao’s Capital A/c 2,500
(Being Reserve Fund distributed)
Mar 31 Cash A/c Dr. 31,800
To Realisation A/c 31,800
(Being Assets Realised)
Mar 31 Anandrao’s Capital A/c Dr. 2,500
To Realisation A/c 2,500
(Being Furniture Takenover by Anandrao)
Mar 31 Realisation A/c Dr. 6,500
To Cash A/c 6,500
(Being Liabilities and Expense paid)
Mar 31 Anandrao’s Capital A/c Dr. 3,100
Baburao’s Capital A/c Dr. 3,100
To Realisation A/c 6,200
(Being loss on realisation transferred to capital A/c)
Mar 31 Anandrao’s Capital A/c Dr. 6,900
Baburao’s Capital A/c Dr. 19,400
To Cash A/c 26,300
(Being Amount Paid to Partner’s on final Settelement of Accounts)
Total: 1,24,300 1,24,300

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Target Publications Pvt. Ltd. Std. XII (Commerce): Book-Keeping & Accountancy
Solution to Practice Q.4.: In the Books of Firm
Journal Entries
Debit Credit
Date Particulars L.F.
` `
2013
Mar 31 Realisation A/c Dr. 2,31,250
To Debtors A/c 56,250
To Stock A/c 1,12,500
To Furniture A/c 25,000
To Motor Car A/c 37,500
(Being Assets transferred to Realisation A/c)
Mar 31 Reserve Fund A/c Dr. 15,000
To Devendra’s Capital A/c 9,000
To Ganesh’s Capital A/c 6,000
(Being Reserve Fund distributed among Partners)
Mar 31 R.D.D. A/c Dr. 6,250
To Realisation A/c 6,250
(Being R.D.D. transferred to Realisation)
Mar 31 Creditors A/c Dr. 12,500
Bank Overdraft A/c Dr. 10,000
To Realisation A/c 22,500
(Being Liabilities transferred to Realisation)
Mar 31 Bank A/c Dr. 1,45,000
To Realisation A/c 1,45,000
(Being Assets Realised)
Mar 31 Devendra’s Capital A/c Dr. 35,000
Ganesh’s Capital A/c Dr. 30,000
To Realisation A/c 65,000
(Being Motor Car and Furniture taken over by Devendra and
Ganesh respectively)
Mar 31 Realisation A/c Dr. 5,000
To Bank A/c 5,000
(Being Realisation Expenses paid off)
Mar 31 Bank A/c Dr. 12,500
To Realisation A/c 12,500
(Being Goodwill Realised)
Mar 31 Realisation A/c Dr. 21,250
To Bank A/c 21,250
(Being Liabilites Paid off)
Mar 31 Devendra’s Capital A/c Dr. 3,750
Ganesh’s Captial A/c Dr. 2,500
To Realisation A/c 6,250
(Being Loss on Realisation transferred to capital A/c)
Mar 31 Devendra’s Capital A/c Dr. 85,250
Ganesh’s Captial A/c Dr. 48,500
To Bank A/c 1,33,750
(Being Amount Paid to Partner’s for final Settelement of
Accounts)
Total: 6,63,750 6,63,750

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Target Publications Pvt. Ltd. Chapter 06: Dissolution of Partnership Firm

Solution to Practice Q.5.: In the Books of Firm

Realisation Account
Dr. Cr.
Amount Amount Amount Amount
Particulars Particulars
` ` ` `
To Sundry Assets A/c By Sundry Liabilities A/c
Bills Receivable 4,000 Sundry Creditors 14,000
Computer 18,000 Bills Payable 20,000 34,000
Vehicles 20,000 By Bank A/c
Machines & Plant 18,000 Bills Receivable 3,800
Furniture & Fixture 2,000 Computer 16,000
Land & Building 40,000 1,02,000 Vehicle 18,000
To Bank A/c Land & Building 50,000
Sundry Creditors 11,200 Plant & Machinery 18,000
Bills Payable 18,000 Furniture 2,000 1,07,800
Dissolution Expenses 3,000 32,200
By Partner’s Capital A/c
(Profit on Realisation)
Ajay 3,040
Vijay 3,040
Sunny 1,520 7,600
1,41,800 1,41,800

Partners Capital Account

Dr. Cr.
Ajay Vijay Sunny Ajay Vijay Sunny
Particulars Particulars
` ` ` ` ` `
To Bank A/c 30,240 30,240 15,120 By Balance b/d 20,000 20,000 10,000
By Reserve Fund 7,200 7,200 3,600
By Realisation A/c 3,040 3,040 1,520
(Profit)
30,240 30,240 15,120 30,240 30,240 15,120
Sunny’s Loan Account
Dr. Cr.
Amount Amount
Particulars Particulars
` `
To Bank A/c 6,000 By Balance b/d 6,000
6,000 6,000
Bank Account
Dr. Cr.
Amount Amount
Particulars Particulars
` `
To Balance b/d 6,000 By Realisation A/c 32,200
To Realisation A/c 1,07,800 By Sunny’s Loan A/c 6,000
By Ajay’s Capital A/c 30,240
By Vijay’s Capital A/c 30,240
By Sunny’s Capital A/c 15,120
1,13,800 1,13,800

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Target Publications Pvt. Ltd. Std. XII (Commerce): Book-Keeping & Accountancy
Solution to Practice Q.6.: In the Books of Firm
Realisation Account
Dr. Cr.
Amount Amount Amount Amount
Particulars Particulars
` ` ` `
To Sundry Assets A/c By Sundry Liabilities
Goodwill 4,000 Creditors 6,000
Land & Building 12,000 Bills Payable 2,000 8,000
Furniture 2,400 By Bank A/c
Stock 10,000 Land & Building 14,000
Debtors 7,200 35,600 Stock 8,000
To Bank A/c Debtors 7,200 29,200
Creditors 5,400 By Pravin’s Capital A/c
Bills Payable 2,000 Furniture 4,000
Realisation Expenses 1,000 8,400
By Partner’s Capital A/c
(Loss on Realisation)
Pravin 1,400
Angel 1,400 2,800

44,000 44,000

Partner’s Capital Account

Dr. Cr.
Pravin Angel Pravin Angel
Particulars Particulars
` ` ` `
To Realisation A/c 4,000 – By Balance b/d 12,000 10,000
To Realisation A/c (Loss) 1,400 1,400 By Reserves A/c 2,000 2,000
To Bank A/c 8,600 10,600

14,000 12,000 14,000 12,000

Pravin’s Loan Account

Dr. Cr.
Amount Amount
Particulars Particulars
` `
To Bank A/c 4,000 By Balance b/d 4,000

4,000 4,000

Bank Account
Dr. Cr.
Amount Amount
Particulars Particulars
` `
To Balance b/d 2,400 By Pravin’s Loan A/c 4,000
To Realisation A/c 29,200 By Realisation A/c 7,400
By Realisation A/c 1,000
By Pravin’s Capital A/c 8,600
By Angel’s Capital A/c 10,600

31,600 31,600

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Target Publications Pvt. Ltd. Chapter 06: Dissolution of Partnership Firm

Journal Entries
Debit Credit
Date Particulars L.F.
` `
2012
Apr 1 Realisation A/c Dr. 35,600
To Sundry Assets A/c 35,600
(Being assets transferred to realisation A/c)
Apr 1 Sundry Liabilities A/c Dr. 8,000
To Realisation A/c 8,000
(Being liabilities transferred to realisation A/c)
Apr 1 Reserves A/c Dr. 4,000
To Pravin’s Capital A/c 2,000
To Angel’s Capital A/c 2,000
(Being balance of reserves A/c distributed)
Apr 1 Bank A/c Dr. 29,200
To Realisation A/c 29,200
(Being land & building, debtors and stock realised)
Apr 1 Realisation A/c Dr. 7,400
To Bank A/c 7,400
(Being liabilities paid)
Apr 1 Realisation A/c Dr. 1,000
To Bank A/c 1,000
(Being realisation expenses paid)
Apr 1 Pravin’s Capital A/c Dr. 4,000
To Realisation A/c 4,000
(Being furniture taken over)
Apr 1 Pravin’s Capital A/c Dr. 1,400
Angel’s Capital A/c Dr. 1,400
To Realisation A/c 2,800
(Being loss on realisation transferred to capital A/c)
Apr 1 Pravin’s Loan A/c Dr. 4,000
To Bank A/c 4,000
(Being settlement of loan)
Apr 1 Pravin’s Capital A/c Dr. 8,600
Angel’s Capital A/c Dr. 10,600
To Bank A/c 19,200
(Being cash paid on final settlement)
Total: 1,15,200 1,15,200

Solution to Practice Q.7.: In the Books of Firm

Realisation Account
Dr. Cr.
Amount Amount Amount Amount
Particulars Particulars
` ` ` `
To Sundry Assets A/c By R.D.D. A/c 1,000
Plant & Machinery 20,000 By Sundry Liabilities
Investments 8,000 Creditors 21,000
Stock 30,000 By Bank A/c
Debtors 18,000 76,000 Investments 5,000
To Bank A/c Stock 24,000
Creditors paid 21,000 Debtors 15,000 44,000
Realisation Expense 1,000 22,000 By Eknath’s Capital A/c
Plant & Machinery 20,000

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Target Publications Pvt. Ltd. Std. XII (Commerce): Book-Keeping & Accountancy
By Partner’s Capital A/c
(Loss on Realisation)
Eknath 6,000
Namdeo 3,600
Tukaram 2,400 12,000
98,000 98,000
Partner’s Capital Account
Dr. Cr.
Eknath Namdeo Tukaram Eknath Namdeo Tukaram
Particulars Particulars
` ` ` ` ` `
To Realisation A/c 20,000 – – By Balance b/d 20,000 10,000 4,000
To Realisation A/c (Loss) 6,000 3,600 2,400 By Reserve Fund A/c 10,000 6,000 4,000
To Bank A/c 4,000 12,400 5,600
30,000 16,000 8,000 30,000 16,000 8,000
Namdeo’s Loan Account
Dr. Cr.
Amount Amount
Particulars Particulars
` `
To Cash A/c 5,000 By Balance b/d 5,000
5,000 5,000
Bank Account
Dr. Cr.
Amount Amount
Particulars Particulars
` `
To Balance b/d 3,000 By Namdeo’s Loan A/c 5,000
To Cash A/c 2,000 By Realisation A/c 21,000
To Realisation A/c 44,000 By Realisation A/c 1,000
By Eknath’s Capital A/c 4,000
By Namdeo’s Capital A/c 12,400
By Tukaram’s Capital A/c 5,600
49,000 49,000

Solution to Practice Q.8.: In the Books of Firm

Realisation Account
Dr. Cr.
Amount Amount Amount Amount
Particulars Particulars
` ` ` `
To Sundry Assets A/c By Sundry Liabilities A/c
Debtors 9,000 Creditors 6,400
Furniture 3,000 Bills Payable 3,600 10,000
Stock 10,000 By Cash A/c
Building 10,000 Debtors 8,300
Bills Receivable 1,000 33,000 Stock 9,200
To Cash A/c Bills Receivable 990 18,490
Creditors 6,400 By Pramod’s Capital A/c
Bills Payable 3,600 Building 9,000
Realisation Expenses 300 10,300 By Prakash’s Capital A/c
Furniture 2,700

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Target Publications Pvt. Ltd. Chapter 06: Dissolution of Partnership Firm

By Partner’s Capital A/c

(Loss on Realisation)
Prakash 1,555
Pramod 1,555 3,110
43,300 43,300
Partner’s Capital Account
Dr. Cr.
Prakash Pramod Prakash Pramod
Particulars Particulars
` ` ` `
To Realisation A/c 2,700 9,000 By Balance b/d 10,000 12,000
To Realisation A/c (Loss) 1,555 1,555 By Reserve Fund A/c 2,000 2,000
To Bank A/c 7,745 3,445
12,000 14,000 12,000 14,000
Cash Account
Dr. Cr.
Amount Amount
Particulars Particulars
` `
To Balance b/d 3,000 By Realisation A/c 10,300
To Realisation A/c 18,490 By Prakash’s Capital A/c 7,745
By Pramod’s Capital A/c 3,445
21,490 21,490
Journal Entries
L.F. Debit Credit
Date Particulars
` `
2012
Mar 31 Realisation A/c Dr. 33,000
To Debtors 9,000
To Furniture 3,000
To Stock 10,000
To Building 10,000
To Bills Receivable 1,000
(Being Sundry Assets Transferred to Realisation)
Mar 31 Creditors A/c Dr. 6,400
Bills Payable A/c Dr. 3,600
To Realisation A/c 10,000
(Being Sundry Liabilities Transferred to Realisation)
Mar 31 Reserve Fund A/c Dr. 4,000
To Prakash’s Capital A/c 2,000
To Pramod’s Capital A/c 2,000
(Being Reserve Fund Distributed as per profit sharing ratio)
Mar 31 Cash A/c Dr. 18,490
To Realisation A/c 18,490
(Being Assets realised for Cash)
Mar 31 Pramod’s Capital A/c Dr. 9,000
Prakash’s Capital A/c Dr. 2,700
To Realisation A/c 11,700
(Being Building taken over by Pramod and Furniture taken over by
Prakash)
Mar 31 Realisation A/c Dr. 10,300
To Cash A/c 10,300
(Being Creditors, Bills Payable and Realisation Expenses Paid)

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Mar 31 Prakash’s Capital A/c Dr. 1,555
Pramod’s Capital A/c Dr. 1,555
To Realisation A/c 3,110
(Being Loss On Realisation transferred to partners capital A/c)
Mar 31 Prakash’s Capital A/c Dr. 7,745
Pramod’s Capital A/c Dr. 3,445
To Cash A/c 11,190
(Being Cash paid to partners on final settlement)
Total: 1,01,790 1,01,790

Solution to Practice Q.9.: In the Books of Firm

Realisation Account
Dr. Cr.
Amount Amount Amount Amount
Particulars Particulars
` ` ` `
To Sundry Assets A/c By R.D.D. A/c 800
Building 30,000 By Sundry Liabilities A/c
Machinery 10,000 Creditors 15,000
Furniture 12,000 By Bank A/c
Debtors 8,800 Stock 19,000
Stock 20,000 Debtors 7,500
Investments 4,000 Machinery 11,000
Commission Receivable 1,000 85,800 Building 14,000 51,500
To Bank A/c By Shital’s Capital A/c
Creditors 15,000 Investments 5,000
Dissolution Expenses 2,000 17,000 Furniture 12,000 17,000
By Abhijit’s Loan A/c
Settlement of Loan 500
By Partner’s Capital A/c
(Loss on Realisation)
Abhijit 9,000
Shital 9,000 18,000
1,02,800 1,02,800

Partners Capital Account

Dr. Cr.
Abhijit Shital Abhijit Shital
Particulars Particulars
` ` ` `
To Realisation A/c – 17,000 By Balance b/d 40,000 30,000
To Realisation A/c (Loss) 9,000 9,000 By Reserve Fund A/c 4,000 4,000
To Bank A/c 35,000 8,000
44,000 34,000 44,000 34,000

Abhijit’s Loan Account

Dr. Cr.
Amount Amount
Particulars Particulars
` `
To Bank A/c 1,500 By Balance b/d 2,000
To Realisation A/c 500
2,000 2,000
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Target Publications Pvt. Ltd. Chapter 06: Dissolution of Partnership Firm

Bank Account
Dr. Cr.
Amount Amount
Particulars Particulars
` `
To Balance b/d 10,000 By Realisation A/c 17,000
To Realisation A/c 51,500 By Abhijit’s Loan A/c 1,500
By Abhijit’s Capital A/c 35,000
By Shital’s Capital A/c 8,000
61,500 61,500

Solution to Practice Q.10.: In the Books of Firm

Realisation Account
Dr. Cr.
Amount Amount Amount Amount
Particulars Particulars
` ` ` `
To Sundry Assets A/c By R.D.D. A/c 1,000
Stock 46,000 By Sundry Liabilities A/c
Debtors 20,000 Sundry Creditors 38,000
Furniture 14,000 Mrs. Patil’s Loan 10,000 48,000
Plant and Machinery 78,000 By Patil’s Capital A/c
Investment 10,000 1,68,000 Investments 8,000
To Patil’s Capital A/c By Bank A/c
Mrs. Patil’s Loan 10,000 Stock 45,000
To Bank A/c Debtors 18,500
Creditors 37,050 Furniture 14,500
Dissolution Expense 1,100 38,150 Plant and Machinery 75,000 1,53,000
By Partner’s Capital A/c
(Loss on Realisation)
Patil 3,690
Kumbhar 2,460 6,150
2,16,150 2,16,150

Partner’s Capital Account

Dr. Cr.
Patil Kumbhar Patil Kumbhar
Particulars Particulars
` ` ` `
To Profit & Loss A/c 4,500 3,000 By Balance b/d 70,000 48,000
To Realisation A/c 8,000 – By Reserve A/c 3,000 2,000
To Realisation A/c (Loss) 3,690 2,460 By Realisation A/c 10,000 –
To Bank A/c 66,810 44,540
83,000 50,000 83,000 50,000

Kumbhar’s Loan Account

Dr. Cr.
Amount Amount
Particulars Particulars
` `
To Bank A/c 15,000 By Balance b/d 15,000
15,000 15,000

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Target Publications Pvt. Ltd. Std. XII (Commerce): Book-Keeping & Accountancy
Bank Account
Dr. Cr.
Amount Amount
Particulars Particulars
` `
To Balance b/d 11,500 By Realisation A/c 38,150
To Realisation A/c 1,53,000 By Kumbhar’s Loan A/c 15,000
By Patil’s Capital A/c 66,810
By Kumbhar’s Capital A/c 44,540
1,64,500 1,64,500

Solution to Practice Q.11.: In the Books of Firm

Realisation Account
Dr. Cr.
Amount Amount Amount Amount
Particulars Particulars
` ` ` `
To Sundry Assets A/c By Sundry Liabilities A/c
Fixed Assets 34,000 Sundry Creditors 12,000
Debtors 46,000 Loans 3,000 15,000
Stock 15,600 By Manda’s Capital A/c
Fixture 2,000 97,600 Fixtures 1,600
To Manda’s Capital A/c Debtors 34,400 36,000
Creditors 12,000 By Nanda’s Capital A/c
To Kunda’s Capital A/c Stock 14,000
Loan 3,000 Fixed Assets 14,400 28,400
Interest 90 3,090 By Kunda’s Capital A/c
To Cash A/c Fixed Assets 16,200
Dissolution Expenses 500 By Cash A/c
Debtors 3,000
By Partner’s Capital A/c
(Loss on Realisation)
Manda 8,754
Nanda 2,918
Kunda 2,918 14,590
1,13,190 1,13,190
Partner’s Capital Account
Dr. Cr.
Manda Nanda Kunda Manda Nanda Kunda
Particulars Particulars
` ` ` ` ` `
To Realisation A/c 36,000 28,400 16,200 By Balance b/d 55,000 20,000 14,000
To Realisation A/c (Loss) 8,754 2,918 2,918 By Realisation A/c 12,000 – 3,090
To Cash A/c 22,246 – – By Cash A/c – 11,318 2,028
67,000 31,318 19,118 67,000 31,318 19,118
Cash Account
Dr. Cr.
Amount Amount
Particulars Particulars
` `
To Balance b/d 6,400 By Realisation A/c 500
To Realisation A/c 3,000 By Manda’s Capital A/c 22,246
To Nanda’s Capital A/c 11,318
To Kunda’s Capital A/c 2,028
22,746 22,746
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Working Note:
Calculation of amount of Fixed Assets taken over by Kunda:
Book Value of Assets taken over by Nanda
Assets taken over by Nanda = ` 14,400 (90% of Book Value)
Book Value of Assets taken over by Nanda = ` 14,400 × = ` 16,000
Book Value of Assets taken over by Kunda = 34000 – 16000 = 18000
Assets taken over by Kunda at 90% of the book value = 18000 × 90/100 = 16,200

Solution to Practice Q.12.: In the Books of Firm

Realisation Account
Dr. Cr.
Amount Amount Amount Amount
Particulars Particulars
` ` ` `
To Sundry Assets A/c By R.D.D. A/c 2,000
Building 32,000 By Sundry Liabilities A/c
Sundry Debtors 18,000 Bank Loan 10,000
Plant & Machinery 12,000 Sundry Creditor 10,000
Stock 4,200 Bills Payable 5,000 25,000
Furniture 1,800 By Sunita’s Capital A/c
Goodwill 10,000 78,000 Building 20,000
To Sunita’s Capital A/c Stock 4,000 24,000
Bank Loan 10,000 By Amita’s Capital A/c
Interest on Loan 200 10,200 Sundry Debtors 2,000
To Amita’s Capital A/c Plant & Machinery 8,000 10,000
Sundry Creditors 10,000 By Madhu’s Capital A/c
Bills Payable 5,000 15,000 Furniture 1,500
To Madhu’s Capital A/c
Realisation Expenses 1,000 By Partner’s Capital A/c
(Loss on Realisation)
Sunita 20,850
Amita 12,510
Madhu 8,340 41,700
1,04,200 1,04,200
Partners Capital Account
Dr. Cr.
Sunita Amita Madhu Sunita Amita Madhu
Particulars Particulars
` ` ` ` ` `
To Realisation A/c 24,000 10,000 1,500 By Balance b/d 20,000 15,000 10,000
To Realisation A/c (Loss) 20,850 12,510 8,340 By Reserve Fund A/c 3,000 1,800 1,200
By Realisation A/c 10,200 15,000 −
By Realisation A/c − − 1,000
To Bank A/c − 9,290 2,360 By Bank A/c 11,650 − −
44,850 31,800 12,200 44,850 31,800 12,200

Sunita’s Loan Account

Dr. Cr.
Amount Amount
Particulars Particulars
` `
To Bank A/c 4,000 By Balance b/d 4,000
4,000 4,000

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Bank Account
Dr. Cr.
Amount Amount
Particulars Particulars
` `
To Balance b/d 4,000 By Sunita’s Loan A/c 4,000
To Sunita’s Capital A/c 11,650 By Amita’s Capital A/c 9,290
By Madhu’s Capital A/c 2,360

15,650 15,650

Solution to Practice Q.13.: In the Books of Firm

Realisation Account
Dr. Cr.
Amount Amount Amount Amount
Particulars Particulars
` ` ` `
To Sundry Assets A/c By R.D.D. A/c 800
Building 40,000 By Sundry Liabilities A/c
Machinery 22,000 Creditors 17,000
Furniture 15,000 By Cash/Bank A/c
Debtors 9,800 Stock 15,000
Stock 13,000 Machinery 17,200
Investment 25,000 1,24,800 Debtors 8,800
To Commission Receivable A/c 1,000 Building 46,000 87,000
To Bank A/c By B’s Capital A/c
Creditors 17,000 Investments 24,000
Dissolution Expenses 3,500 20,500 By C’s Capital A/c
Furniture 12,000
By Partner’s Capital A/c
(Loss on Realisation)
A 1,833
B 1,833
C 1,834 5,500
1,46,300 1,46,300
Partner’s Capital Account
Dr. Cr.
A B C A B C
Particulars Particulars
` ` ` ` ` `
To Realisation A/c − 24,000 – By Balance b/d 40,000 30,000 30,000
To Realisation A/c − − 12,000 By Reserve Fund A/c 8,000 8,000 8,000
To Realisation A/c (Loss) 1,833 1,833 1,834

To Bank A/c 46,167 12,167 24,166

48,000 38,000 38,000 48,000 38,000 38,000

A’s Loan Account

Dr. Cr.
Amount Amount
Particulars Particulars
` `
To Commission Receivable A/c 10,000 By Balance b/d 10,000
10,000 10,000
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Bank Account
Dr. Cr.
Amount Amount
Particulars Particulars
` `
To Balance b/d 16,000 By Realisation A/c 17,000
To Realisation A/c 87,000 By Realisation A/c 3,500
By A’s Capital A/c 46,167
By B’s Capital A/c 12,167
By C’s Capital A/c 24,166
1,03,000 1,03,000
Journal Entries
Debit Credit
Date Particulars L.F.
` `
2012
Mar 31 Realisation A/c Dr. 1,24,800
To Sundry Assets A/c 1,24,800
(Being assets transferred to realisation A/c)
Mar 31 R.D.D. A/c Dr. 800
To Realisation A/c 800
(Being liabilities transferred to realisation A/c)
Mar 31 Sundry Liabilities A/c Dr. 17,000
To Realisation A/c 17,000
(Being liabilities transferred to realisation A/c)
Mar 31 Reserve Fund A/c Dr. 24,000
To A’s Capital A/c 8,000
To B’s Capital A/c 8,000
To C’s Capital A/c 8,000
(Being balance of reserve fund distributed)
Mar 31 Bank A/c Dr. 87,000
To Realisation A/c 87,000
(Being building, machinery, debtors and stock realised)
Mar 31 Realisation A/c Dr. 17,000 17,000
To Bank A/c
(Being liabilities paid)
Mar 31 Realisation A/c Dr. 3,500
To Bank A/c 3,500
(Being realisation expenses paid)
Mar 31 B’s Capital A/c Dr. 24,000
To Realisation A/c 24,000
(Being investments taken over)
Mar 31 C’s Capital A/c Dr. 12,000
To Realisation A/c 12,000
(Being furniture taken over)
Mar 31 A’s Loan A/c Dr. 10,000
Realisation A/c Dr. 1,000
To Commission Receivable A/c 11,000
(Being settlement of A’s loan by take over of Commission
receivable)
Mar 31 A’s Capital A/c Dr. 1,833
B’s Capital A/c Dr. 1,833
C’s Capital A/c Dr. 1,834
To Realisation A/c 5,500
(Being loss on realisation transferred to capital A/c)
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Mar 31 A’s Capital A/c Dr. 46,167
B’s Capital A/c Dr. 12,167
C’s Capital A/c Dr. 24,166
To Bank A/c 82,500
(Being cash paid on final settlement)
Total: 4,09,100 4,09,100

Solution to Practice Q.14.: In the Books of Firm

Realisation Account
Dr. Cr.
Amount Amount Amount Amount
Particulars Particulars
` ` ` `
To Sundry Assets A/c By Sundry Liability A/c
Building 30,000 Bills Payable 4,000
Stock 5,000 By Cash A/c
Debtors 12,000 Stock 6,000
Joint Life Policy 4,000 51,000 Debtors 11,000
To Bank A/c Building 40,000 57,000
Bills Payable 4,000 By Mr. R’s Capital A/c
Joint Life Policy 4,000
To Partners Capital A/c
(Profit on Realisation)
Mr. R 6,667
Mrs. R 3,333 10,000
65,000 65,000
Partner’s Capital Account
Dr. Cr.
Mr. R Mrs. R Mr. R Mrs. R
Particulars Particulars
` ` ` `
To Realisation A/c 4,000 − By Balance b/d 20,000 10,000
By Partners Current A/c 5,000 3,000
By Reserve Fund A/c 8,000 4,000
To Cash A/c 35,667 20,333 By Realisation A/c (Profit) 6,667 3,333
39,667 20,333 39,667 20,333
Cash Account
Dr. Cr.
Amount Amount
Particulars Particulars
` `
To Balance b/d 3,000 By Realisation A/c 4,000
By Mr. R’s Capital A/c 35,667
To Realisation A/c 57,000 By Mrs. R’s Capital A/c 20,333
60,000 60,000
Journal Entries
Debit Credit
Date Particulars L.F.
` `
2012
Mar 31 Realisation A/c Dr. 51,000
To Sundry Assets A/c 51,000
(Being assets transferred to realisation A/c)
Mar 31 Sundry Liabilities A/c Dr. 4,000
To Realisation A/c 4,000
(Being liabilities transferred to realisation A/c)
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Mar 31 Reserve Fund A/c Dr. 12,000

To Mr. R’s Capital A/c 8,000
To Mrs. R’s Capital A/c 4,000
(Being balance of reserve fund distributed)
Mar 31 Mr.R’s Current A/c Dr. 5,000
To Mr. R’s Capital A/c 5,000
(Being balance of current A/c transferred to capital A/c)
Mar 31 Mrs.R’s Current A/c Dr. 3,000
To Mrs. R’s Capital A/c 3,000
(Being balance of current A/c transferred to capital A/c)
Mar 31 Cash A/c Dr. 57,000
To Realisation A/c 57,000
(Being building, debtors and stock realised)
Mar 31 Realisation A/c Dr. 4,000
To Cash A/c 4,000
(Being liabilities paid)
Mar 31 Creditors A/c Dr. 15,000
To Plant & Machinery A/c 15,000
(Being plant & machinery transferred to creditors in full
settlement of their claim)
Mar 31 Mr. R’s Capital A/c Dr. 4,000
To Realisation A/c 4,000
(Being Joint Life Policy taken over)
Mar 31 Realisation A/c Dr. 10,000
To Mr. R’s Capital A/c 6,667
To Mrs. R’s Capital A/c 3,333
(Being profit on realisation transferred to capital A/c)
Mar 31 Mr. R’s Capital A/c Dr. 35,667
Mrs. R’s Capital A/c Dr. 20,333
To Cash A/c 56,000
(Being cash paid on final settlement)
Total: 2,21,000 2,21,000

Solution to Practice Q.15.: In the Books of Firm

Realisation Account
Dr. Cr.
Amount Amount Amount Amount
Particulars Particulars
` ` ` `
To Sundry Assets A/c By R.D.D. A/c 1,000
Debtors 16,000 By Sundry Liabilities A/c
Stock 20,000 Creditors 20,000
Plant & Machinery 30,000 Bills Payable 5,000 25,000
Furniture 6,000 72,000 By Bank A/c
To Bank A/c Debtors 9,000
Creditors 18,000 Plant & Machinery 26,000
Bills Payable 5,000 Stock 14,000
Realisation Expenses 3,000 26,000 Furniture 3,000 52,000
By Partner’s Capital A/c
(Loss on Realisation)
Rajani 8,000
Rohini 8,000
Rani 4,000 20,000
98,000 98,000

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Partner’s Capital Account
Dr. Cr.
Rajani Rohini Rani Rajani Rohini Rani
Particulars Particulars
` ` ` ` ` `
To Balance b/d – – 3,000 By Balance b/d 25,000 10,000 –
To Realisation A/c (Loss) 8,000 8,000 4,000 By General Reserve A/c 2,400 2,400 1,200
To Rani’s Capital A/c 2,000 2,000 – By Bank A/c – – 1,800
By Rajani’s Capital A/c – – 2,000
To Bank A/c 17,400 2,400 – By Rohini’s Capital A/c – – 2,000
27,400 12,400 7,000 27,400 12,400 7,000

Rajani’s Loan Account

Dr. Cr.
Amount Amount
Particulars Particulars
` `
To Bank A/c 16,000 By Balance b/d 16,000
16,000 16,000

Bank Account
Dr. Cr.
Amount Amount
Particulars Particulars
` `
To Balance b/d 8,000 By Realisation A/c 26,000
To Realisation A/c 52,000 By Rajani’s Capital A/c 16,000
By Rohini’s Capital A/c 2,400
To Rani’s Capital A/c 1,800 By Rajani’s Capital A/c 17,400
61,800 61,800

Solution to Practice Q.16.: In the Books of Firm

Realisation Account
Dr. Cr.
Amount Amount Amount Amount
Particulars Particulars
` ` ` `
To Sundry Assets A/c By Sundry Liabilities A/c
Sundry Debtors 7,000 Sundry Creditors 12,000
Plant & Machinery 14,000 Bills Payable 8,000 20,000
Stock 4,000 By Bank A/c
Land & Building 10,000 Debtors 4,000
Goodwill A/c 6,000 41,000 Machinery 8,000
To Bank A/c Goodwill 4,800
Creditors 10,800 Building 8,000
Bills Payable 8,000 18,800 Stock 4,000 28,800
By Partner’s Capital A/c
(Loss on Realisation)
Sony 5,500
Mony 3,300
Tony 2,200 11,000
59,800 59,800

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Partners Capital Account

Dr. Cr.
Sony Mony Tony Sony Mony Tony
Particulars Particulars
` ` ` ` ` `
To Balance b/d − − 2,000 By Balance b/d 18,000 7,000 −
To Realisation A/c (Loss) 5,500 3,300 2,200 By Bank A/c − − 1,000
To Tony’s Capital A/c 2,000 1,200 − By Sony’s Capital A/c − − 2,000
By Mony’s Capital A/c − − 1,200
To Bank A/c 10,500 2,500 −
18,000 7,000 4,200 18,000 7,000 4,200
Bank Account
Dr. Cr.
Amount Amount
Particulars Particulars
` `
To Balance b/d 2,000 By Realisation A/c 18,800
To Realisation A/c 28,800 By Sony’s Capital A/c 10,500
To Tony’s Capital A/c 1,000 By Mony’s Capital A/c 2,500
31,800 31,800
Solution to Practice Q.17.: In the Books of Firm
Realisation Account
Dr. Cr.
Amount Amount Amount Amount
Particulars Particulars
` ` ` `
To Sundry Assets A/c By Sundry Liabilities A/c
Building 1,00,000 Creditors 13,000
Machinery 70,000 Bills Payable 9,000 22,000
Furniture 20,000 By Bank A/c
Stock 12,000 Building 1,20,000
Debtors 12,000 Machinery 60,000
Bills Receivable 6,000 2,20,000 Debtors 10,000
To Rushi’s Capital A/c Goodwill 2,000 1,92,000
Creditors 12,000 By Rushi’s Capital A/c
To Rushabh’s Capital A/c Furniture and Stock 30,000
Bills Payable 9,000 By Rushabh’s Capital A/c
Dissolution Expenses 1,500 10,500 Bills Receivable 5,000
By Rushabh’s Loan A/c 1,000
To Partner’s Capital A/c
(Profit on Realisation)
Rushabh 3,500
Rushi 2,500
Manali 1,500 7,500
2,50,000 2,50,000

Partner’s Capital Account

Dr. Cr.
Rushabh Rushi Manali Rushabh Rushi Manali
Particulars Particulars
` ` ` ` ` `
To Balance b/d − − 10,000 By Balance b/d 90,000 80,000 −
To Realisation A/c − 30,000 − By General Reserve A/c 7,000 5,000 3,000
To Realisation A/c 5,000 − − By Realisation A/c − 12,000 −
To Manali’s Capital A/c 1,604 1,146 − By Realisation A/c 1,500 − −
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By Realisation A/c (Profit) 3,500 2,500 1,500
By Rushabh’s Loan A/c 26,000 − −
By Bank A/c − − 2,750
By Rushabh’s Capital A/c − − 1,604
To Bank A/c 1,21,396 68,354 − By Rushi’s Capital A/c − − 1,146
1,28,000 99,500 10,000 1,28,000 99,500 10,000
Rushabh’s Loan Account
Dr. Cr.
Amount Amount
Particulars Particulars
` `
To Rushabh’s Capital A/c 26,000 By Balance b/d 27,000
To Realisation A/c 1,000
27,000 27,000
Bank Account
Dr. Cr.
Amount Amount
Particulars Particulars
` `
To Balance b/d 4,000 By Realisation A/c 9,000
To Realisation A/c 1,92,000 By Rushabh’s Capital A/c 1,21,396
To Manali’s Capital A/c 2,750 By Rushi’s Capital A/c 68,354
1,98,750 1,98,750

Solution to Practice Q.18.: In the Books of Firm

Realisation Account
Dr. Cr.
Amount Amount Amount Amount
Particulars Particulars
` ` ` `
To Sundry Assets A/c By Sundry Liabilities A/c
Machinery 2,000 Creditors 4,000
Goodwill 3,000 Overdraft 6,000 10,000
Stock & Debtors 19,000 24,000 By Bank A/c
To Bank A/c Stock and Debtors 18,000
Contingent Liability 3,000 Machinery 2,000 20,000
Creditors 3,600
Overdraft 6,000 12,600 By Partner’s Capital A/c
(Loss on Realisation)
Vijay 3,520
Vinod 1,760
Vivek 1,320 6,600
36,600 36,600
Partner’s Capital Account
Dr. Cr.
Vijay Vinod Vivek Vijay Vinod Vivek
Particulars Particulars
` ` ` ` ` `
To Balance b/d – – 1,000 By Balance b/d 12,000 9,000 –
To Profit & Loss A/c 3,200 1,600 1,200 By Bank A/c – – 880
To Realisation A/c (Loss) 3,520 1,760 1,320 By Vijay’s Capital A/c – – 1,760
To Vivek’s Capital A/c 1,760 880 – By Vinod’s Capital A/c – – 880
To Bank A/c 3,520 4,760 –
12,000 9,000 3,520 12,000 9,000 3,520

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Bank Account
Dr. Cr.
Amount Amount
Particulars Particulars
` `
To Realisation A/c 20,000 By Realisation A/c 12,600
To Vivek’s Capital A/c 880 By Vijay’s Capital A/c 3,520
By Vinod’s Capital A/c 4.760
20,880 20,880

Solution to Practice Q.19.: In the Books of Firm

Realisation Account
Dr. Cr.
Amount Amount Amount Amount
Particulars Particulars
` ` ` `
To Sundry Assets A/c By Sundry Liabilities A/c
Building 19,000 Creditors 12,500
Machinery 13,500 Bills Payable 7,500 20,000
Furniture 3,000 By Bank A/c
Stock 20,500 Building 18,000
Debtors 10,000 Machinery 12,000
Bills Receivable 6,000 72,000 Debtors 5,000
To Kulkarni’s Capital A/c Goodwill 900 35,900
Creditors 12,000 By Kulkarni’s Capital A/c
To Solkar’s Capital A/c Furniture & Stock 20,000
Bills Payable 7,500 By Solkar’s Capital A/c
To Bank A/c Bills Receivable 5,200
Dissolution Expenses 1,600
By Partner’s Capital A/c
(Loss on Realisation)
Kulkarni 6,000
Solkar 2,000
Bhave 4,000 12,000
93,100 93,100
Partner’s Capital Account
Dr. Cr.
Kulkarni Solkar Bhave Kulkarni Solkar Bhave
Particulars Particulars
` ` ` ` ` `
To Balance b/d – – 8,500 By Balance b/d 24,000 21,500 –
To Profit & Loss A/c 750 250 500 By General Reserve A/c 6,000 2,000 4,000
To Realisation A/c 20,000 5,200 – By Realisation A/c 12,000 7,500 –
To Realisation A/c (Loss) 6,000 2,000 4,000 By Kulkarni’s Capital A/c – – 6,750
To Bhave’s Capital A/c 6,750 2,250 – By Solkar’s Capital A/c – – 2,250
To Bank A/c 8,500 21,300 –
42,000 31,000 13,000 42,000 31,000 13,000
Bank Account
Dr. Cr.
Amount Amount
Particulars Particulars
` `
To Balance b/d 3,000 By Realisation A/c 1,600
To Realisation A/c 35,900 By Kulkarni’s Loan A/c 7,500
By Kulkarni’s Capital A/c 8,500
By Solkar’s Capital A/c 21,300
38,900 38,900

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Solution to Practice Q.20.: In the Books of Firm
Realisation Account
Dr. Cr.
Amount Amount Amount Amount
Particulars Particulars
` ` ` `
To Sundry Assets A/c By Sundry Liabilities A/c
Machinery 22,000 Creditors 29,000
Stock 29,400 By Bank A/c
Debtors 36,600 88,000 Machinery, Stock and Debtors 65,000
To Investments A/c
Settlement of Nayan’s Loan 3,000
To Bank A/c
Creditors 28,500
Dissolution Expenses 1,700 30,200 By Partner’s Capital A/c
(Loss on Realisation)
Nayan 13,600
Prem 9,067
Rupa 4,533 27,200

1,21,200 1,21,200

Partner’s Capital Account

Dr. Cr.
Nayan Prem Rupa Nayan Prem Rupa
Particulars Particulars
` ` ` ` ` `
To Balance b/d − − 3,600 By Balance b/d 70,000 5,000 −
To Realisation A/c (Loss) 13,600 9,067 4,533 By Bank A/c − − 3,253
To Prem’s Capital A/c 4,067 − − By Nayan’s Capital A/c − 4,067 4,880
To Rupa’s Capital A/c 4,880 − −

To Bank A/c 47,453 − −

70,000 9,067 8,133 70,000 9,067 8,133

Nayan’s Loan Account

Dr. Cr.
Amount Amount
Particulars Particulars
` `
To Investments A/c 18,000 By Balance b/d 18,000

18,000 18,000

Bank Account
Dr. Cr.
Amount Amount
Particulars Particulars
` `
To Balance b/d 9,400 By Realisation A/c 1,700
To Realisation A/c 65,000 By Realisation A/c 28,500
To Rupa’s Capital A/c 3,253 By Nayan’s Capital A/c 47,453

77,653 77,653

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Journal Entries
Debit Credit
Date Particulars L.F.
` `
2012
Mar 31 Realisation A/c Dr. 88,000
To Sundry Assets A/c 88,000
(Being assets transferred to realisation A/c)
Mar 31 Sundry Liabilities A/c Dr. 29,000
To Realisation A/c 29,000
(Being liabilities transferred to realisation A/c)
Mar 31 Bank A/c Dr. 65,000
To Realisation A/c 65,000
(Being machinery, debtors and stock realised)
Mar 31 Realisation A/c Dr. 28,500
To Bank A/c 28,500
(Being liabilities paid)
Mar 31 Realisation A/c Dr. 1,700
To Bank A/c 1,700
(Being realisation expenses paid)
Mar 31 Nayan’s Loan A/c Dr. 18,000
Realisation A/c Dr. 3,000
To Investments A/c 21,000
(Being settlement of Nayan’s loan by take over of Investments)
Mar 31 Nayan’s Capital A/c Dr. 13,600
Prem’s Capital A/c Dr. 9,067
Rupa’s Capital A/c Dr. 4,533
To Realisation A/c 27,200
(Being loss on realisation transferred to capital A/c)
Mar 31 Bank A/c Dr. 3,253
To Rupa’s Capital A/c 3,253
(Being 40% recovered of the amount due from Rupa )
Mar 31 Nayan’s Capital A/c Dr. 4,880
To Rupa’s Capital A/c 4,880
(Being deficiency of Rupa transferred to Nayan’s capital A/c)
Mar 31 Nayan’s Capital A/c Dr. 4,067
To Prem’s Capital A/c 4,067
(Being deficiency of Prem transferred to Nayan’s capital A/c)
Mar 31 Nayan’s Capital A/c Dr. 47,453
To Bank A/c 47,453
(Being cash paid on final settlement)
Total: 3,20,053 3,20,053

Solution to Practice Q.21.: In the Books of Firm

Realisation Account
Dr. Cr.
Amount Amount Amount Amount
Particulars Particulars
` ` ` `
To Sundry Assets A/c By Sundry Liabilities A/c
Building 37,500 Bank Loan 33,000
Machinery 7,500 Bank Overdraft 6,000 39,000
Furniture 9,000 By Cash A/c
Stock 5,550 Furniture 3,000
Debtors 22,500 82,050 Debtors 10,000

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To Cash A/c Stock 3,500
Bank Loan 33,000 Building 33,000
Bank Overdraft 6,000 39,000 Machinery 7,000 56,500
By Partner’s Capital A/c
(Loss on Realisation)
D 12,775
C 12,775 25,550
1,21,050 1,21,050
Partner’s Capital Account
Dr. Cr.
D C D C
Particulars Particulars
` ` ` `
To Realisation A/c (Loss) 12,775 12,775 By Balance b/d 12,000 9,000
By Bank A/c − 1,133
By Deficiency A/c 775 2,642
12,775 12,775 12,775 12,775
Cash Account
Dr. Cr.
Amount Amount
Particulars Particulars
` `
To Balance b/d 750 By Realisation A/c 39,000
To Realisation A/c 56,500 By Creditors A/c 14,537
To C’s Capital A/c 1,133 By Bills Payable A/c 4,846
58,383 58,383
Creditors Account
Dr. Cr.
Amount Amount
Particulars Particulars
` `
To Cash A/c 14,537 By Balance b/d 17,100
To Deficiency A/c 2,563
17,100 17,100
Bills Payable Account
Dr. Cr.
Amount Amount
Particulars Particulars
` `
To Cash A/c 4,846 By Balance b/d 5,700
To Deficiency A/c 854
5,700 5,700
Deficiency Account
Dr. Cr.
Amount Amount
Particulars Particulars
` `
To D’s Capital A/c 775 By Creditors A/c 2,563
To C’s Capital A/c 2,642 By Bills Payable A/c 854
3,417 3,417

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