P and Q were partners in a firm sharing profits in the ratio of 3 : 2.  On 31.3.2011 their Balance Sheet was as follows :

                      Balance Sheets of P and Q

                             as on 31-3-2011

Liabilities		Rs.	Assets	Rs.
Capitals :			Goodwill	80,000
P	80,000		Land and Building	80,000
Q	70,000	1,50,000	Stock	60,000
Creditors		50,000	Debtors	40,000
Workmen Compensation Fund		80,000	Bank	20,000
		2,80,000		2,80,000

The firm was dissolved on 1-4-2011 and the Assets and Liabilities were settled as follows :

(i) Creditors agreed to take over Land and  Building at a valuation of their full claim.

(ii) Stock was taken over by Q at Rs. 50,000 for cash.

(iii) Bad debts proved Rs. 5,000

(iv) Goodwill was found valueless.

(v) Workmen compensation claim was Rs. 80,000.

Pass necessary Journal Entries for dissolution of the firm.

Verma and Sharma were partners sharing profits in the ratio of 3 : 1.  On 31-03-2011 their Balance Sheet was as follows :

                 Balance Sheets of Verma and Sharma

                            as on 31-03-2011

Liabilities		Rs.	Assets	Rs.
Capitals :			Land and Building	70,000
Verma	1,20,000		Machinery	60,000
Sharma	80,000	2,00,000	Debtors	80,000
Creditors		70,000	Bank	60,000
		2,70,000		2,70,000

The firm was dissolved on 1-4-2011 and the Assets and Liabilities were settled as follows:

  (i) Creditors of Rs. 50,000 took over Land and Building in full settlement of their claim.

  (ii) Remaining Creditors were paid in cash.

  (iii) Machinery was sold at a depreciation of 30%.

  (iv) Debtors were collected at a cost of Rs. 500.

  (v) Expenses of realisation were Rs. 1,700.

Pass necessary Journal Entries for dissolution of the firm.

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.

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.

Liabilities	Amt(Rs.)	Assets	Amt(Rs.)
CreditoRs.	90,000	Bank	1,10,000
Workmen compension fund	80,000	DebtoRs.	1,12,000
Aarav's Current A/c	1,30,000	Stock	1,70,000
Capital A/cs		Furniture	2,00,000
Rishi                     4,00,000		Machinery	2,60,000
Aarav                  2,00,000	6,00,000	Rishi's Current A/c	40,000
	9,00,000		9,00,000

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 :

Liabilities		Rs.	Assets	Rs.
Creditors		50,000	Bank	60,000
Bank Loan		35,000	Debtors	75,000
Provident Fund		15,000	Stock	40,000
Investment Fluctuation Fund		10,000	Investments	20,000
Commission Received in Advance		8,000	Plant	50,000
Capital A/cs :			Profit & Loss A/c	3,000
Anju	50,000
Manju	50,000
Sanju	30,000	1,30,000
		2,48,00		2,48,000

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 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.

Mention any one difference between revaluation account and realisation account.

Pass the necessary journal entries for the following transaction 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 9,000 was written-off in the books, paid Rs 7,500 in full settlement.
(iii) Shiva took over all investments at Rs13,300.
(iv) sundry creditors Rs10,000 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.

Pass Journal entries for the following transactions. 
(i) Realisation expenses amounted to Rs.40,000.
(ii) Realisation expenses amounted to Rs.20,000 were paid by a partner.
(iii) Realisation expenses amounted to Rs.20,000 were paid by the firm on behalf of a partner.
(iv) A partner was paid remuneration (including expenses) of Rs 30,000 to carry out dissolution of the firm. Actual expenses were Rs.40,000.
(v) Dissolution expenses were Rs.32,000. Out of the said expenses, Rs.12,000 were to be borne by the firm and the balance by a partner, Rs.32,000 are paid the firm.
(vi) Dissolution expenses were Rs.32,000 Rs.12,000 were to be borne by the firm and the balance by a partner. The expenses were paid by a partner.
(vii) Realisation expenses of Rs. 20,000 were to be borne and paid by a partner.
(viii) Rohit, a partner is paid remuneration of Rs.20,000 for dissolution of the firm. Realisation expenses of Rs.32,000 are met by the firm.
(ix) Rohit, a partner agreed to take over the responsibility of completing dissolution at an agreed remuneration of Rs.4,000 and to bear all realisation expenses. Actual realisation expenses amounted to Rs.3,200 were paid by Rohit. The assets (including cash at bank Rs. 12,000) realised Rs. 6,12,000.
(x) Rohit one of the partners was to receive 2% of the value of assets realised as remuneration for completing the dissolution work and was to bear realisation expenses. Realisation expenses were Rs.4,000 paid by Rohit. The assets (Including cash at bank Rs.12,000) realised Rs.6,12,000.
(xi) Rohit one of the partners was to receive 2% of the net cash realised from dissolution and was to bear realisation expenses. Realisation expenses were Rs.4,000. The assets(Including cash at bank Rs.12,000) realised Rs.6,12,000. and cash paid for outsiders' liabilities amounted to Rs.1,60,000