Following is the balance sheet of A and B who share profits and losses in the ratio of 3:2 as at 31st March, 2018

                                                                          Balance sheet
                                                                             as at 31st March, 2018

Liabilities		Amt(Rs.)	Assets		Amt(Rs.)
Sundry CreditoRs.		75,000	Cash at Bank		4,500
Bills Payable		30,000	Stock		25,000
MRs. A's Loan		25,000	DebtoRs.	40,500
Workmen Compensation Reserve		8,000	(-) Provision for Doubtful Debts	(1,000)	39,500
Bank Loan		50,000	Bills Receivable		15,000
General Reserve		27,000	Investments		60,000
Capital A/cs			Plant And Machinery		80,000
A	30,000		Building		61,100
B	40,000	70,000
		2,85,000			2,85,000

On the above date, the firm was dissolved and the following arrangments were made.
(i) A promised to pay MRs. A's loan and took half of the investments @10% discount.
(ii) Stock and remaining investments were sold @ 10% discount.
(iii) Goodwill was taken by B for Rs..40,000. He also agreed to pay bills payable at a discount of 10%.
(iv) DebtoRs. realised Rs. 35,000, bills receivable Rs..13,500, plant and machinery Rs. 38,900 and building Rs. 1,20,000.
(v) There was a car in the firm, which was completely written off from the books. It was taken over by A for Rs..23,400.
(vi) CreditoRs. were paid 90% in full and final settlement of their dues.
(vii) Expenses of dissolution amounted to Rs.1,7000.
Prepare realisation account, capital accounts of partneRs. and bank account in the books of the firm.

Vish and Krish are partneRs. sharing their profits and losses in the ratio of 3:1. They decide to dissolve their firm on 31st March, 2018. Their balance sheet as at that date was as under                                                           

                           Balance Sheet as at 31st March, 2018

Liabilities		Amt(Rs.)	Assets	Amt(Rs.)
Overdraft		60,000	Leasehold Property	80,000
CreditoRs.		88,000	Machinery	70,000
Capital A/cs			Furniture	14,000
Vish	1,08,000		Investments	20,000
Krish	54,000	1,62,000	Stock	70,000
			DebtoRs.	48,000
			Commission Receivable	6,000
			Cash at Bank	2,000
		3,10,000		3,10,000

Leasehold property, machinery and furniture were divided among themselves and valuations were agreed at Rs.1,20,000 and Rs.80,000 respectively for Vish and Krish. Vish agreed to pay creditoRs. and Krish agreed to meet the overdraft. Commission receivable was realised. Realisation expenses were Rs.6,000. Stock is worth 80% of book value. Investments are worth Rs.36,000. Stock and other assets except those stated above are divided equally. The accounts are settled by cash payment. Show the ledger accounts.

P, Q and R commenced business on 1st January, 2015 with capitals of Rs.2,00,000, Rs.2,00,000 and Rs1,00,000 respectively. Profits are shared in the ratio of 4:3:3. Capital carried interest @ 5% per annum. During the year 2015, the firm suffered a loss of Rs.1,50,000 before allowing interest on capital. Drawings od each partner during the year were Rs.20,000.
On 31st December, 2015, the partners agreed to dissolve the firm as it was no longer profitable. The creditors on that date were Rs.40,000. The assets realised a net value of Rs.3,20,000 and the expenses of realisation were Rs.7,000.
Prepare realisation account, partners' capital accounts and cash account along with necessary working to close the books of the firm.

P, Q and R were partneRs. in a firm sharing profits in the ratio of 2:2:1. Their balance sheet as at 31st March, 2018 was as follows                                                                  Balance Sheet as at 31st March, 2018

Liabilities		Amt(Rs.)	Assets	Amt(Rs.)
CreditoRs.		60,000	Cash	72,000
Bank Loan		42,000	DebtoRs.	90,000
Employees Provident Fund		18,000	Stock	48,000
Investment Fluctuation Fund		12,000	InveRs.tments	24,000
Commistion Received in Advance		9,600	Plant	60,000
Capital A/cs			Profit and loss A/c	3,600
p	60,000
Q	60,000
R	36,000	1,56,000
		2,97,600		2,97,600

On this date, the firm was dissolved. P was appointed to realise the assets. P was to receive 5% commission on the sale of assets(expect cash) and was to bear all expenses of realisation. P realised the assets as follows.
DeptoRs. 20% less, stock Rs. 42,600, investments 80%, plant 90% of the book value. Expenses of realisation amounted to Rs.9,000 paid by the firm on behalf. Commission received in advance was returned to the customeRs. after deducting Rs.3,600.
Firm had to pay Rs.10,200 to outstanding salary not provided for earlier. Compensation paid to employees amounted to Rs.20,400. This liability was not provided for in the above balance sheet. Rs.24,000 has to be paid for provident fund.
Prepare realisation account, capital accounts of partneRs. and cash account.

X, Y and Z are partneRs. sharing profits in the ratio of 5:3:2. They decided to dissolve the firm whose balance sheet is given belo

 Balance Sheet as at

Liabilities		Amt(Rs.)	Assets	Amt(Rs.)
Capital A/cs			Bank	84,000
X	2,40,000		DebtoRs.	60,000
Y	1,80,000		Stock	72,000
Z	1,80,000	6,00,000	Furniture	1,50,000
Current A/cs			Patents	42,000
X	30,000		Building	3,84,000
Y	20,400	50,400	Z's Current A/c	14,400
Profit and loss A/c		60,000
Trade CreditoRs.		72,000
Workmen Compensation fund		12,000
Employees Provident fund		6,000
Loan from MRs. X		6,000
		8,06,400		8,06,400

 Following transactions took place at the time of dissolution.
(i) Realisation Expenses were to be fully borne by X for which he is to get a credit of Rs.12,000. Actual realisation expenses paid out of firm's bank account amounted to Rs. 14,400.
(ii) Y took over stock for Rs..66,000 and Z took over buildings for Rs.4,80,000.
(iii) Other assets realised as follows: debtoRs. Rs.57,600, furniture Rs. 1,16,000.
(iv) Patents didn't realise anything and trade creditoRs. were settled in full by paying them Rs..66,000.
(v) Accounts of partneRs. were settled after realised assets and paying outside liabilities.

Shikhar and Ranveer are partners in a firm sharing profits and losses in the ratio of 2:1 On 31st March, 2015, their balance sheet was as under. Ranveer became permanently incapable to work. So, the Court ordered for the dissolution of the firm. Shikhar took over investments at an agreed valuation of Rs70,000.  Other assets were realised as follows Sundry debtors: Full amount. The firm could realise stock at 15% less and furniture at 20% less than the book value. building was sold at Rs.2,00,000. Compensation to employees paid by the firm amounted to Rs.20,000. This liability was not provided for in the above balance sheet. you are required to close the books of the firm by preparing realisation account, partners' capital accounts and bank account. Also, identify the value involved.

If partner's loan appears on the liabilities side of the balance sheet of the firm and the capital account of such partner shows a debit balance, how will you deal with such a loan?

What will be the accounting treatment of undistributed profits such as general reserve, credit balance of profit and loss account at the time of dissolution of firm?

Realisation account shows profit of Rs1,00,000. In which ratio will it be shared by the partners?

All the partners of a firm want to dissolve the firm. Sonu, a partner wants that his loan of Rs 32,000 should be paid off before the payment of Mrs Monu's loan. But Monu, another partner wants that Mrs Monu's loan must be paid before the payment of Sonu's loan. Who is correct?

Angad, Raman and Harshit are partners in a firm.  They decided to dissolve their firm.  Pass necessary journal entries for the following after various assets (other than cash and bank) and their party liabilities have been transferred to Realisation Account.

(i) There was a stock of Rs. 90,000.  Raman took over 50% of the stock at 10% discount and remaining stock was sold at 40% profit on book value.

(ii) Profit and Loss Account was showing a credit balance of Rs. 15,000 which distributed among the partners.

(iii) A machinery which was not recorded in the books was sold for Rs. 2,000.

(iv) Angad was paid only Rs. 5,000 (in full settlement) for his loan to the firm which amounted to Rs. 5,500.

(v) Realisation expenses amount to Rs. 5,000 paid by Harshit.

(vi) There were 100 shares of Rs. 10 each in D.C.M.  Ltd. acquired at cost of Rs.1,200 which had been written off completely from the books.  These shares are valued at Rs. 9 each and divided among the partners in their profit sharing ratio.

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.