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cbse 12th Standard Accountancy Dissolution of Partnership Firm Important Questions And Answers Study Material - QB365 Set A

Published on: 25/10/2025

Question Set A

cbse 12th Standard Accountancy Dissolution of Partnership Firm Important Questions And Answers Study Material - QB365

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Std: 12th Standard CBSE - Accountancy

chapter: Dissolution of Partnership Firm - Important Questions And Answers

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Questions:

Generic 3

8 x 3 = 24

Annex Ltd. issued 1,00,000 shares of ₹10 each at a premium of 10% to the public for subscription. The whole amount was payable on application.
Applications were received for 3,00,000 shares and the board decided to allot shares to all shareholders on pro-rata basis.
Pass necessary journal entries for the above transactions in the books of Annex Ltd.

ZK Ltd issued ₹4,00,000, 9% debentures of ₹100 each at a discount of 5% redeemable at a premium of 10%. Pass necessary journal entries for the above transactions in the books of ZK Ltd.

Rose Bond Limited purchased a business for Rs. 22,00,000. Purchase Price was paid by 6% debentures. Debentures of Rs. 20,00,000 were issued at a premium of 10% for the purpose. Record necessary journal entries.

A company forfeited 800 equity shares of Rs.10 each issued at a discount of 10% for non-payment of first and final calls of Rs.2 each. Calculate the amount forfeited by the company and pass the journal entry for forefeiture of the shares.

There was an old computer which was written-off in the books of accounts in the pervious year. The same has been taken over by a partner Nitin for Rs.3,000. Journalise the transaction when the firm has been dissolved.

Kumar Ltd. purchased assets of Rs.6,30,000 from Bhanu Oil Ltd. Kumar Ltd. issued equity share of Rs.100 each fully paid in consideration. What journal entries will be made, if the shares are issued, (a) at par, and (b) at premium of 20%.

Bright Ltd. issued 2,00,000, 9% debentures of Rs.100 payable as follows:

On Application	Rs 30
On Allotment	Rs 70

The debentures were fully subscribed and all the money was duly received. As per terms of the prospectus, the debentures are redeemable at Rs.110 per debenture. Give necessary entries regarding regarding issue of debentures in the books of company.

Ahuja Ltd. issued 25,000, 10% debentures of Rs.50 each. Pass necessary journal entries in the books of the company for the issues of the debentures when debentures were:
(i) issued at 6% premium; and redeemable at 8% premium.
(ii) issued at 6% discount; and redeemable at 8% premium.

Generic 6

7 x 6 = 42

Pass necessary journal entries for the following transactions relating to the issue of debentures
(i) Gagan Limited issued ₹10,00,000, 9% debentures of 100 each at a premium of 5%, redeemable at par after four years.
(ii) KS Limited issued ₹10,00,000, 10% debentures of 100 each at par, redeemable at 10% premium after four year.
(iii) QR Limited issued ₹10,00,000, 9% debentures of 100 each at a discount of 10%, redeemable at a premium of 5% after five years.

10.

DP Shah Company Ltd made an issue of 1,00,000 equity shares of Rs 10 each at a premium of 30% payable as follows

On application Rs 3.50 per share, on allotment Rs 6.50 per share, balance on first and final call.

Applications were received for 2,00,000 equity shares and the directors made pro-rata allotment. Harsh, who had applied for 1,600 shares did not pay the allotment and final call money, as a result his shares were forfeited. Later on, 60% of the forfeited shares were re-issued at Rs 8 per share fully paid-up.

Pass necessary journal entries for the mentioned transactions in the books of the company.

11.

XYZ Ltd took over assets of Rs.5,00,000 and liabilities of Rs.60,000 of POR Company for the purchase consideration of Rs.6,60,000. The XYZ Company Ltd paid the purchase consideration by issuing debentures of Rs.100 each at 10% premium.
Give journal entries in the books of the XYZ Company Ltd.

12.

Amit holds 100 shares of Rs.10 each on which he has paid Re.1 per share as application money. Bimal holds 200 shares of Rs.10 each on which he has paid Re.1 and Rs.2 per share as application and allotment money, respectively. Chetan holds 300 shares of Rs.10 each and has paid Re.1 on application, Rs.2 on allotment and Rs.3 for the first call. They all failed to pay their arrears and the second call of Rs.2 per share and the directors, therefore, forfeited their shares. The shares are reissued subsequently for Rs.11 per share as fully paid. Journalise the transactions.

13.

Cronic Limited issued 10,000 equity shares of Rs. 10 each payable at Rs. 2.50 on application, Rs. 3 on allotment, Rs. 2 on first call, and the balance of Rs. 2.50 on second and final call. All the shares were fully subscribed and paid except of a shareholder having 100 shares who could not pay for second and final call. Give journal entries to record these transactions.

14.

Inderjeet Ltd made an issue of 75,000 shares of the par value o f Rs .50 per share. The issue was oversubscribed to the extent of 25,000 shares and allotment as made as under
(i) Applications of 5,000
(ii) Applications of 10,000 shares are allotted in full.
(iii) For the balance 85,000 shares, the pro-rata allotment was made.
Journalise the above transactions, when the company called rs 20 on applications, Rs 20 on allotment and the balance on first and final call. Also, identify the value violated by the company.

15.

P, Q and R are partners in a firm in the ratio of 5 : 3 : 2. On 31st December, 2010 the firm was dissolved. On dissolution, the following particulars are available :

(i) Assets realised Rs. 1,70,000 after a loss of Rs. 20,000.

(ii) Liabilities were paid Rs. 27,000 including an unrecorded liability of Rs. 1,000.

(iii) Realisation expenses paid Rs. 700.

(iv) On the date of dissolution, partners' capital was in the ratio of 2 : 2 : 1.

Prepare Realisation Account, Partners' Capital Accounts and Cash Account.

Generic 8

2 x 8 = 16

16.

Complete the following journal entries.

JOURNAL

Particulars		Amt(Dr)	Amt(Cr)
Land and Building A/c	Dr	18,00,000
Plant A/c	Dr	9,20,000
Stock A/c	Dr	3,20,000
Debtors A/c	Dr	2,80,000
....................A/c		..............
To Sundry Creditors A/c			2,60,000
To Blue Bath Ltd			32,00,000
(.................................................)	Dr
.............................		...............
To ..................			.............
To ..................			.............
To ..................			.............
(Being purchases consideration settled by issue of 2,50,000 equity shares of Rs 10 each at 20% premium and balance amount by cheque)

17.

Bora, Singh and Ibrahim were partners in a firm sharing profits in the ratio of 5 : 3 : 1. On 2.3.2015 their firm was dissolved. The assets were realised and the liabilities were paid off. Given below are the Realisation Account, Partners' Capital Account and Bank Account of the firm. The accountant of the firm left a few amounts unposted in these accounts. You are required these accounts by positing the correct amounts:

Dr. Realisation Account Cr.

Particulars		Rs.	Particulars		Rs.
To Stock		10,000	By Provision for bad debts		5,000
To Debtors		25,000	By Sundry Creditors		16,600
To Plant and Machinery		40,000	By Bills Payable		3,400
To Blank:			By Mortagage Loan		15,000
Sundary Creditors	16,000		By Bank - Assets Realized:
Bills Payable	3,400		Stock	6,700
Mortgage Loan	15,000	34,400	Debtors	12,500
To Bank (Outstanding repairs)		400	Plant and Machinery	36,000	55,200
To Bank (Expenses)		620	By Bank-Urecorded Assets Realised		6,220
			By ......		.....
		1,10,420			1,10,420

Dr. Capital Account Cr.

Particulars	Bora Rs.	Singh Rs.	Ibrahim Rs.	Particulars	Bora Rs.	Singh Rs.	Ibrahim Rs.
.....	.....	.....	.....	By Balance b/d	22,000	18,000	10,000
.....	.....	.....	.....	By General Reserve	2,500	1,500	500
	24,500	19,500	10,500		24,500	19,500	10,500

Particulars

Bora

Rs.

Singh

Rs.

Ibrahim

Rs.

Particulars

Bora

Rs.

Singh

Rs.

Ibrahim

Rs.

.....

By Balance b/d

22,000

18,000

10,000

.....

By General Reserve

2,500

1,500

500

24,500

19,500

10,500

24,500

19,500

10,500

Dr. Bank Account Cr.

Particulars	Rs.	Particulars	Rs.
To Balance b/d	19,500	By Realisation (Liabilities)	34,00
To Realisation (Assers realized)	55,200	By Realisation (Unrecorded Liabilities)	400
.....	....	By .....	.....
		By .....	.....

	80,920		80,920

Multiple Choice Question

20 x 1 = 20

18.

Anish Ltd. issued a prospectus inviting applications for 2,000 shares. Applications were received for 3,000 shares and pro-rata allotment was made to the applicants of 2,400 shares. If Dhruv has been allotted 40 shares, how many shares he must have applied for?

(a)

(b)

(c)

(d)

19.

Attire Ltd, issued a prospectus inviting applications for 12,000 shares of ₹10 each payable ₹3 on application, ₹5 on allotment and balance on call. Public had applied for certain number of shares and application money was received. Which of the following application money, if received restricts the company to proceed with the allotment of shares, as per SEBI guidelines?

(a)

₹36,000

(b)

₹45,000

(c)

₹30,000

(d)

₹32,400

20.

The following journal entry appears in the books of X Co. Ltd.

Bank a/c	Dr.	4,75,000
Loss on issue of debenture a/c	Dr.	75,000
To 12% Debentures a/c			5,00,000
To Premium on Redemption of Debenture A/c			50,000

Debentures have been issued at a discount of:

(a)

15%

(b)

(c)

10%

(d)

50%

21.

Interest on calls in arrears is charged according to “Table F” at :

(a)

10%

(b)

(c)

(d)

11%

22.

When all the debentures are redeemed, balance in the debentures redemption fund account is transferred to

(a)

Capital reserve

(b)

General reserve

(c)

Statement of profits and loss

(d)

None of the above

23.

Excess value of net assets over purchase consideration at the time of purchase of business is credited to

(a)

General reserve

(b)

Capital reserve

(c)

Vendors account

(d)

Both (a) and (b)

24.

X Co. Ltd. purchased assets worth Rs.28,80,000. It issued debentures of Rs.100 each at a discount of 4 per cent in full satisfaction of the purchase consideration. The number of debentures issued to vendor is

(a)

30,000

(b)

28,800

(c)

32,000

(d)

40,000

25.

A company issued 25,000 shares and received applications for 35,000 shares. Company wants to allot shares to everyone who has applied. What will be the ratio for allotment?

(a)

6: 7

(b)

7: 5

(c)

5: 7

(d)

7: 6

26.

Shares which have preferential rights are called

(a)

equity share

(b)

preference share

(c)

debenture

(d)

bond

27.

A company in which there is only one member is called

(a)

one member company

(b)

one person company

(c)

single company

(d)

individual company

28.

Companies Act is governed by

(a)

RBI

(b)

SEBI

(c)

Partnership Act

(d)

Ministry of Corporate Affairs

29.

On dissolution of the firm, partner's capital accounts are closed through

(a)

Realisation account

(b)

Drawings account

(c)

Bank account

(d)

Loan account

30.

On dissolution of a firm, partner's loan account is transferred to

(a)

Realisation account

(b)

Partners' Capital accounts

(c)

Partners' Current accounts

(d)

None of the above

31.

At the time of dissolution all the assets of firm are transferred to the realization A/c:

(a)

Market value

(b)

Book value

(c)

Cost value

(d)

Bale value

32.

For any decrease in the value of liability, revolution A/c is to be:

(a)

Debited

(b)

Credited

(c)

Both (Cr.) & (Dr.)

(d)

Neither (Dr.) & (Cr.)

33.

Old profit sharing ratio minus new profit sharing ration is equal to:

(a)

Sacrificing ratio

(b)

Ratio of gain ratio

(c)

Capital

(d)

None

34.

The agreement among partners which set out the terms on which they had agreed to form a partnership is called:

(a)

Partnership deed

(b)

Partnership at – will

(c)

None of these

(d)

Arbitration clause

35.

Retirement or death of a partner.

(a)

Is dissolution of partnership agreement

(b)

Is dissolution of a firm

(c)

May or may not be a dissolution of partnership agreement

(d)

None of above

36.

Debenture holders are

(a)

Owners of the company

(b)

Creditors of the company

(c)

Vendors of the company

(d)

Customers of the company

37.

Share allotment is a:

(a)

Personal a/c

(b)

real a/c

(c)

nominal a/c

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Answers Key:

Generic 3

8 x 3 = 24

**Journal of Annex Ltd**
Particulars		Amt (Dr)	Amt (Cr)

Bank A/c	Dr	33,00,000
To Share Application A/c			\|33,00,000
(Being application money received)
Share Application A/c	Dr	33,00,000
To Share Capital A/c (1,00,000 x 10)			10,00,000
To Securities Premium A/c (1,00,000 x 1)			1,00,000
To Bank A/c (2,00,000 x 11)			22,00,000
(Being application money transferred to share capital account and excess money refunded)

**In the Books of ZK Ltd Journal**
Particulars		Amt(Dr)	Amt(Cr)

Bank A/c (4,000 x 95)	Dr	3,80,000
To Debenture Application and Allotment A/c			3,80,000
(Being application money received on 4,000, 9% debentures of Rs.95 each)
Debenture Application and Allotment	Dr	3,80,000
Loss on Issue of Debentures A/c (4,000 x 15)	Dr	60,000
To 9% Debentures A/c (4,000 x 100)			4,00,000
To Premium on Redemption of Debentures A/c (4,000 x 10)			40,000
(Being issue of 4,000,9% debentures at 5% discount and redeemable at 10% premium)

Journal Entries
Date	Particulars		LF	Amt. (Dr)	Amt. (Cr)
(i)	Sundry Assets A/c To Vendor A/c (Being assets purchased worth Rs 22,00,000)	Dr		22,00,000	22,00,000
(ii)	Vendor A/c To 6% Debentures A/c To Securities Premium A/c (Being 2,000 debentures of Rs 100 each issued at 10% premium)	Dr		22,00,000	20,00,000 2,00,000

Date	Particulars		LF	Amt. (Dr)	Amt. (Cr)
	Share Capital A/c (800 x 10) To Calls-in-Arrears A/c (800 x 4) To Discount on Issue A/c (800 x 1) To Share Forfeiture A/c (800 x 5) (Being 800 shares forfeited for non payment of first and final calls of Rs 2 each issued at discount 10%)	Dr		8,000	3,200 800 4,000

**Journal**
Particulars		Amount (Rs.)	Amount (Rs.)
Nitin’s Capital A/c	Dr	3,000	3,000
To Realisation A/c
(Unrecorded computer taken over by Nitin)

Journal

Date	Particulars	Amt(Dr)	Amt(Cr)
	Sunday Assets A/c Dr	6,30,000
	To Bhanu Oil Ltd		6,30,000
	(Being assets purchased from Bhanu Oil Ltd)
(i)	When shares are issued at par	6,30,000
	Bhanu Oil Ltd Dr		6,30,000
	To Equity Share Capital A/c \((6,300\times100)\)
	(Being 6,300 shares issued par to Bhanu Ltd)
(ii)	When shares are issued at premium
	Bhanu Oil Ltd Dr	6,30,000
	To Equity Share Capital A/c \((5,250\times100)\)		5,25,000
	To Securities Premium Reserve A/c \((5,250\times20)\)		1,05,000
	(Being 5,250 shares are issued at 20% premium to Bhanu Ltd in consideration of assets purchased)

(i) Bank A/c, Cr.Debenture Application A/c by 60,00,000,
(ii) Dr. Debenture Application A/c, Cr.9% Debenture A/c by Rs.60,00,000
(iii) Dr. Debentures Allotment A/c Rs.1,40,00,000, and Loss on Issue of Debentures A/c Rs.20,00,000; Cr.9% Debentures A/c 1,40,00,000 and Premium on Redemption of Debentures A/c Rs.20,00,000,
(iv) Dr. Bank A/c, Cr. Debenture Allotment A/c Rs.1,40,00,000.

(i) (a) Dr.Bank A/c, Cr.Debenture Application and Allotment A/c by Rs.13,25,000
(b) Dr.Debenture Application and Allotment A/c Rs.13,25,000 and Loss on Issue of Debentures A/c Rs.1,00,000, Cr.10% Debentures A/c Rs.12,50,000, Securities Premium reserve A/c Rs.75,000 and Premium on Redemption of Debentures A/c rs.1,00,000.
(ii) (a) Dr.Bank A/c, Cr.Debenture Application and Allotment A/c by Rs.11,75,000
(b) Dr.Debenture Application and Allotment A/c Rs.11,75,000, Discount on Issue of Debentures Rs.75,000 and Loss on Issue of Debentures A/c Rs.1,00,000; Cr.10% Debentures A/c Rs.12,50,000 and Premium on redemption of Debentures A/c Rs.1,00,000.

Generic 6

7 x 6 = 42

**Journal**
Particulars		LF	Amt(Dr)	Amt(Cr)
Bank A/c (10,000 × 105)	Dr		10,50,000
To Debenture Application A/c				10,50,000
(Being 9% debenture issued @ 105 and money received on application and allotment)
Debenture Application A/c	Dr		10,50,000
To 9% Debentures A/c				10,00,000
To Securities Premium A/c				50,000
(Being application and allotment money transferred to 9% debentures account)
Bank A/c	Dr		10,00,000
To Debenture Application and Allotment A/c				10,00,000
(Being money receivedon issue of 10% debentures @ Rs.100)
Debenture Application and Allotment A/c	Dr		10,00,000
Loss on lssue of Debentures A/c	Dr		1,00,000
To10% Debentures A/c (10,000 x 100)				10,00,000
To Premium on Redemption of Debentures A/c				1,00,000
(Being issue of 10% debentures at par and redeemable at 10% premium)
Bank A/c		Dr	9,00,000
To Debenture Application and Allotment A/c				9,00,000
Debenture Application and Allotment A/c		Dr	9,00,000
Loss on lssue of Debentures A/c		Dr	1,50,000
To 9% Debentures A/c				10,00,000
To Premium on Redemption of Debentures A/c				50,000
(Being 9% debentures issued at 10% discount and redeemable at 5% premium)

10.

Transfer to capital reserve = Rs 2,400

11.

Goodwill = Rs.2,20,000; Number of debentures issued = 6,000

12.

Particulars		Amt (Dr)	Amt (Cr)
Share Capital A/c\((600\times8)\)	Dr	4,800
To Share Allotment A/c\((100\times 2)\)			200
To Share First Call A/c\((300\times 3)\)			900
To Share Second Call A/c \((600\times2)\)			1,200
To Share Forfeiture A/c(WN)			2,500
(Being 600 shares @ Rs 10 per share Rs 8 called-up forfeited after making second call)
Bank A/c\((600\times 11)\)	Dr	6,600
To Share Capital A/c\((600\times 10)\)			6,000
To Securities Premium Reserve A/c\((600\times1)\)			600
(Being 600 shares @ Rs 10 each Rs 11 per share fully paid-up re-issued)
Share Forfeiture A/c	Dr	2,500
To Capital Reserve A/c			2,500
(Being balance of share forfeiture account transferred to capital reserve account after re-issue)

13.

Books of Cronic Limited
Journal

Particulars		Amt(Dr)	Amt(Cr)
Bank A/c	Dr	25,000
To Equity Share Application A/c			25,000
(Being money received on application for 10,000 shares @ Rs 2.50 per share)
Equity Share Application A/c	Dr	25,000
To Equity Share Capital A/c			25,000
(Being transfer of application money on 10,000 shares to share capital)
Equity Share Allotment A/c	Dr	30,000
To Equity Share Capital A/c			30,000
(Being amount due on the allotment of 10,000 shares @ Rs 3 per share)
Bakn A/c	Dr	30,000
To Equity Share Allotmant A/c			30,000
(Being allotment money received)
Equity Share First Call A/c	Dr	20,000
To Equity Share Capital A/c			20,000
(Being first call money due on 10,000 shares @ Rs 2 per share)
Bank A/c	Dr	20,000
To Equity Share First Call A/c			20,000
(Being first call money received)
Equity Share Second Capital A/c	Dr	25,000
To Equity Share Second Capital A/c			25,000
(Being final call money due)
Bank A/c	Dr	24,750
Calls-in-arrears A/c	Dr	250
To Equity Share Second and Final Call A/c			25,000
(Being final call money received except that of shares)

14.

Amount to be refunded = Rs.1,00,000; Amount to be received at the time of allotment = Rs.11,00,000

15.

Total Capital of the firm Rs. 1,64,000 (i.e., Rs. 1,90,000(Assets)-Rs.26,000 (liabilities) divided in the ratio of 2 : 2 : 1 = p's Capital Rs. 65,600, Q's Capital Rs. 65,600 and R's Capital Rs. 32,800; Loss on Realisation Rs. 21,700 being P's share Rs. 10,850, Q's share Rs. 6,510 and R's share Rs. 4,340; Final payment of Capitals : P Rs. 54,750, Q Rs. 59,090 and R Rs. 28,460; Total of Cash A/c Rs. 1,70,000.

[Hint : (1) Loss = Sundry Assets - Assets Realised Rs. 20,000=Sundry Assets - Rs. 1,70,000. (2) As unrecorded liability Rs. 1,000 will not be shown in balance sheet, so liabilities of Rs. 26,000 will be shown in balance sheet.]

Generic 8

2 x 8 = 16

16.

JOURNAL

Particulars		Amt(Dr)	Amt(Cr)
Land Buliding A/c	Dr	18,00,000
Plant A/c	Dr	9,20,000
Stock A/c	Dr	3,20,000
Debtors A/c	Dr	2,80,000
Goodwill A/c	Dr	1,40,000
To Sundry Creditors A/c			2,60,000
To Blue Bath Ltd			32,00,000
(Being various assets and liabilities taken over and balancing figure debited to goodwill account)
Blue Bath Ltd	Dr	32,00,000
To Equity Share Capital A/c			25,00,000
To Securities Premium Reserve A/c			5,00,000
To Bank A/c			2,00,000
(Being purchase consideration settled by issue of 2,50,000 equity shares of Rs 10 each at 20% premium and balance amount by cheque)

17.

Loss on Realisation Rs. 9,000; Final Payment of Capital: Bora Rs. 19,500 Singh Rs. 16,500 and Ibrahim Rs. 9,500.

[Hint : (i) Amount realised from unrecorded assets Rs. 6,220 transferred from Realisation A/c to the debit side of Bank A/c. (ii) Expenses Rs. 620 transferred from Realisation A/c to the credit side of Bank A/c. (iii) Loss on Realisation transferred to debit side of partners capital a/c i.e., Bora's share Rs. 5,000, Singh Rs. 3,000 and Ibrahim Rs. 1,000 (iv) Final payment to partners capital transferred from partners' Capital a/cs to the credit side of Bank A/c.]

Multiple Choice Question

20 x 1 = 20

18.

19.

20.