Pass the necessary Journal entries for the following transactions on the dissolution of the firm of Sudha and Shiva after the various assets (other than cash) and outside liabilities have been transferred to Realisation Account:

  (i) Sudha agreed to pay off her husband's loan Rs. 19,000

  (ii)A debtor whose debt of Rs. 9,300 was written off in the books paid Rs. 7,500 in full settlement.

  (iii) Shiva took over all investment at Rs. 13,300.

  (iv) Sundry creditors Rs. 10,000 were paid at 9% discount.

  (v) Realisation expenses Rs. 3,400 were paid by Sudha for which she was allowed Rs. 3,000.

  (vi) Loss on realisation Rs. 9,400 was divided between Sudha and Shiva in 3 : 2 ratio.

X, Y, and Z were Partner sharing profits and losses in the ratio of 2:2:1. On 1st April 2015, their balance sheet was as under

Balance sheet

as at 1st April 2015

The firm was dissolved on that date. The assets realised were

The creditor were settled for Rs.44,000. It was found, however, that there was a liability of Rs.12,000 for damages which had to be paid. Realisation expenses amounted to Rs.4,000.
Prepare realisation account.

Balance sheet of a firm as at 31st March 2015 was as given below

Balance sheet

as at 31st March 2015

The Partnership was dissolved on the above date. Vishal took over the investment at a value of Rs1,90,000. Cash realised was: freehold property Rs9,90,000; Sundry debtors Rs90,000 and stock Rs1,40,000. Creditors were paid at a discount of 5%. Expenses of realisation came to Rs20,000. Pass journal entries and prepare necessary ledger accounts to close the books.

Rishi and Aarav were partneRs. in a firm sharing profits in the ratio of 4:1. On 31st March 2015, their balance sheet was as follows.

On the above date, the firm was dissolved.
(i) Rishi took over 40% of the stock at 10% less than its book value and the remaining stock was sold for Rs.80,000. Furniture realised Rs.1,60,000
(ii)An unrecorded investment was sold for Rs.40,000. Machinery was sold at a loss of Rs.1,20,000.
(iii)DebtoRs. realised Rs..1,10,000.
(iv) There was on the outstanding bill for repaiRs. for which Rs.38,000 was paid.
Prepare realisation account.

Anju, Manju and Sanju were partners in a firm sharing profits in the ratio of 2 : 2 : 1. On 28.2.2015, their Balance Sheet was a follow :

On this date, the firm was dissolved.  Anju was appointed to realise the assets.  Anju was to receive 5% Commission on the sale of assets (except cash) and was to bear all expenses of realisation.

Anju realised the assets as follows : Debtors Rs. 60,000, Stock Rs. 35,500, Investment Rs. 16,000, Plant 90% of the book value.  Expenses of relisation amounted to Rs. 7,500.  Commission received in advance was returned to the customers after deducting Rs. 3,000.

Firm has to pay Rs. 8,500 for Outstanding salary, not provided for earlier.  Compensation paid to employees amounted to Rs. 17,000.  This liability was not provided for in the above Balance Sheet.  Rs. 20,000 had to be paid for  provident fund.

Prepare Realisation Account, Capital Accounts of Partners and Bank Account.

A, B and C were in Partnership whose Balance Sheet as on 31st March, 2015 stood as follows :

It was agreed upon by the partners to dissolve the partnership on the above date as under :

  (i) C will take the investments on an agreed value of Rs. 29,000.

  (ii) Other assets to be disposed off as - Land & Buildings for Rs. 80,000, Debtors for Rs. 9,000 and Stock for Rs. 14,000.

  (iii) The creditors to be paid Rs. 15,000 in full settlement of account.

  (iv) Bills payable were paid in full.

  (v) Expenses of realisation amounting to Rs. 2,000 were met by A.

You are required to give journal entries and ledger accounts to close the books.

A and B have been in business together for the last three years ending 31st March, 2015 at which date, they agreed to dissolve.  Their capital at the commencement of the three years before allowing 10% interest on capital were : 2012-13(profit) Rs.30,000, 2013-14 (profit) Rs. 22,200 and 2014-15 (loss) Rs. 5,380.  Drawings of each partner is Rs. 4,000 per year.  Creditors on the date of dissolution were Rs. 16,400.  The assets realised Rs. 85,000.  Expenses of dissolution amounted to Rs. 780.

Prepare (i) Capital Accounts before and after dissolution, (ii) Balance Sheet as on 31st March 2015, (iii) Bank A/c and (iv) Realisation Account.

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.

On 1st April, 2014 X, Y and Z started business sharing profits and losses in the ratio of 3 : 2 : 1 respectively.  They contributed Rs. 1,00,000 Rs. 80,000 and Rs. 40,000 respectively as their capital which were deposited into bank.  Each partner withdrew Rs. 15,000 during the year.  The partnership was dissolved on 31st March, 2015.  X took up the stock at an agreed price of Rs. 25,000.  Y took up Furniture at Rs.5,000 and Z took up debtors at Rs.18,500.  Creditors were paid off and then remained a balance of Rs. 14,000 in the bank account.

Prepare necessary accounts to show the distribution of cash at bank and of the required cash brought in by any of the partners.

Prakash, Kiran and Rishab are partners in a firm sharing profits and losses in the ratio of 3 : 2 : 1.  Their Balance Sheet as on 31st March 2014 Stood as follows :

                                  Balance sheet

                            as on 31st March, 2014

On the above date, the firm was dissolved and the following transactions took place :

(i) The assets were sold off for the following amounts :

(ii) Kiran took over the Bills Receivable at Rs. 7,000 and the Bills Payable at book value.

(iii) There was an unrecorded asset of Rs. 4,000 which was sold for Rs. 1,800.

(iv) Prakash agreed to pay to his wife's loan.

(v) A contingent liability for a bill discounted at Rs. 8,000 was settled by Prakash.

(vi) Creditors were settled at a discount of 10% and goodwill realised Rs. 5,000.

(Vii) Realisation expenses were Rs. 2,100 which were met by Kiran.

You are required to :

  (a) Pass the necessary Journal Entries.

  (b) Prepare the Realisation Account on the dissolution of the firm.

  (c) Prepare the Capital Accounts of the Partners.