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Dissolution of Partnership Firm

Srijan, Raman and Manan were partners in a firm sharing profits and losses in the ratio of 2 : 2 : 1. On 31st March, 2017 their Balance Sheet was as follows :
 

Balance Sheet of Srijan, Raman and Manan

as on 31.3.2017

Liabilities

Amount

(Rs)

Assets

Amount

(Rs)

Capitals:

 

Capital : Manan

10,000

Srijan

2,00,000

 

Plant

2,20,000

Raman

1,50,000 3,50,000

Investments

70,000

Creditors

75,000

Stock

50,000

Bills Payable

40,000

Debtors

60,000

Outstanding Salary

35,000

Bank 10,000

 

 

Profit and Loss Account

80,000

 

5,00,000

 

5,00,000

 

 

 

 


On the above date they decided to dissolve the firm.
(i) Srijan was appointed to realise the assets and discharge the liabilities. Srijan was to receive 5% commission on sale of assets (except cash) and was to bear all expenses of realisation.

(ii) Assets were realised as follows :
 
  Rs
Plant 85,000
Stock 33,000
Debtors 47,000

(iii) Investments were realised at 95% of the book value.
(iv) The firm had to pay Rs 7,500 for an outstanding repair bill not provided for earlier.
(v) A contingent liability in respect of bills receivable, discounted with the bank had also materialised and had to be discharged for Rs 15,000.
(vi) Expenses of realisation amounting to Rs 3,000 were paid Srijan. Prepare Realisation Account, Partners' Capital Accounts and Bank Account.
 
OR

Moli, Bhola and Raj were partners in a firm sharing profits and losses in the ratio of 3 : 3 : 4. Their partnership deed provided for the following :
(i) Interest on capital @ 5% p.a.
(ii) Interest on drawing @ 12% p.a.
(iii) Interest on partners' loan @ 6% p.a.
(iv) Moli was allowed an annual salary of Rs 4,000; Bhola was allowed a commission of 10% of net profit as shown by Profit and Loss Account and Raj was guaranteed a profit of Rs 1,50,000 after making all the adjustments as provided in the partnership agreement.
Their fixed capitals were Moli : Rs 5,00,000; Bhola : Rs 8,00,000 and Raj : Rs 4,00,000. On 1st April, 2016 Bhola extended a loan of Rs 1,00,000 to the firm. The net profit of the firm for the year ended 31st March, 2017 before interest on Bhola's loan was Rs 3,06,000.
Prepare Profit and Loss Appropriation Account of Moli, Bhola and Raj for the year ended 31st March, 2017 and their Current Accounts assuming that Bhola withdrew Rs 5,000 at the end of each month, Moli withdrew Rs 10,000 at the end of each quarter and Raj withdrew Rs 40,000 at the end of each half year.

View Solution
CBSE Board Paper 2018



Moli, Bhola and Raj were partners in a firm sharing profits and losses in the ratio of 3 : 3 : 4. Their partnership deed provided for the following :
(i) Interest on capital @ 5% p.a.
(ii) Interest on drawing @ 12% p.a.
(iii) Interest on partners' loan @ 6% p.a.
(iv) Moli was allowed an annual salary of Rs 4,000; Bhola was allowed a commission of 10% of net profit as shown by Profit and Loss Account and Raj was guaranteed a profit of Rs 1,50,000 after making all the adjustments as provided in the partnership agreement.
Their fixed capitals were Moli : Rs 5,00,000; Bhola : Rs 8,00,000 and Raj : Rs 4,00,000. On 1st April, 2016 Bhola extended a loan of Rs 1,00,000 to the firm. The net profit of the firm for the year ended 31st March, 2017 before interest on Bhola's loan was Rs 3,06,000.
Prepare Profit and Loss Appropriation Account of Moli, Bhola and Raj for the year ended 31st March, 2017 and their Current Accounts assuming that Bhola withdrew Rs 5,000 at the end of each month, Moli withdrew Rs 10,000 at the end of each quarter and Raj withdrew Rs 40,000 at the end of each half year.

OR

Srijan, Raman and Manan were partners in a firm sharing profits and losses in the ratio of 2 : 2 : 1. On 31st March, 2017 their Balance Sheet was as follows :
 

Balance Sheet of Srijan, Raman and Manan

as on 31.3.2017

Liabilities
Amount
(Rs)
Assets
Amount
(Rs)
Capitals:
 
Capital : Manan
10,000
Srijan
2,00,000
 
Plant
2,20,000
Raman
1,50,000 3,50,000
Investments
70,000
Creditors
75,000
Stock
50,000
Bills Payable
40,000
Debtors
60,000
Outstanding Salary
35,000
Bank 10,000
 
 
Profit and Loss Account
80,000
 
5,00,000
 
5,00,000
 
 
 
 

On the above date they decided to dissolve the firm.
(i) Srijan was appointed to realise the assets and discharge the liabilities. Srijan was to receive 5% commission on sale of assets (except cash) and was to bear all expenses of realisation.

(ii) Assets were realised as follows :
 
  Rs
Plant 85,000
Stock 33,000
Debtors 47,000

(iii) Investments were realised at 95% of the book value.
(iv) The firm had to pay Rs 7,500 for an outstanding repair bill not provided for earlier.
(v) A contingent liability in respect of bills receivable, discounted with the bank had also materialised and had to be discharged for Rs 15,000.
(vi) Expenses of realisation amounting to Rs 3,000 were paid Srijan. Prepare Realisation Account, Partners' Capital Accounts and Bank Account.

View Solution
CBSE Board Paper 2018



Mala, Neela and Kala were partners sharing profits in the ratio of 3 : 2 : 1. On 1.3.2015 their firm was dissolved. The assets were realized and liabilities were paid off. The accountant prepared Realisation Account, Partners' Capital Accounts and Cash Account, but forgot to post few amounts in these accounts.

You are required to complete these below given accounts by posting correct amounts.
 

Realisation Account
Dr.
Cr.
Particulars
Amount
Rs
Particulars
Amount
Rs
To Sundry Assets :
 
By Provision for bad debts
1,000
Machinery
10,000
 
By Sundry Creditors
15,000
Stock
21,000
 
By Sheela’s Loan
13,000
Debtors
20,000
 
By Repairs and Renewals Reserve
1,200
Prepaid Insurance
400
 
By Cash – Assets sold :
 
Investments
3,000
54,400
Machinery
8,000
 
To Mala’s Capital A/c
13,000
Stock
14,000
 
             – Sheela’s Loan
 
Debtors
16,000
38,000
To Cash – Creditors paid
15,000
By Mala’s Capital Investments
2,000
To Cash – Dishonoured bill paid
5,000
 
 
To Cash Expenses
800
……………..
………….
 
88,200
 
88,200
 
 
 
 
 
Capital Accounts
Dr.
Cr.
Particulars
Mala
Rs
Neela
Rs
Kala
Rs
Particulars
Mala
Rs
Neela
Rs
Kala
Rs
………….
………….
………….
………….
………….
………….
………….
………….
………….
………….
 
 
………….
………….
 
 
To Cash
12,000
9,000
 
By Cash
 
 
1,000
 
23,000
15,000
3,000
 
23,000
15,000
3,000
 
Cash Account
Dr.
Cr.
Particulars
Amount
Rs
Particulars
Amount
Rs
To Balance b/d
2,800
By Realisation A/c
15,000
To Realisation A/c
38,000
                 – Creditors paid
 
                  – Sale of assets
 
 
 
To Kala’s Capital A/c
1,000
By Dishonoured bill
5,000
 
 
……………
………….
 
 
By Mala’s Capital A/c
12,000
 
 
By Neela’ s Capital A/c
9,000
 
41,800
 
41,800
 
 
 
 

View Solution
CBSE Board Paper 2015



Mala, Neela and Kala were partners sharing profits in the ratio of 3 : 2 : 1. On 1.3.2015 their firm was dissolved. The assets were realized and liabilities were paid off. The accountant prepared Realisation Account, Partners' Capital Accounts and Cash Account, but forgot to post few amounts in these accounts.

You are required to complete these below given accounts by posting correct amounts.
 

Realisation Account
Dr.
Cr.
Particulars
Amount
Rs
Particulars
Amount
Rs
To Sundry Assets :
 
By Provision for bad debts
1,000
Machinery
10,000
 
By Sundry Creditors
15,000
Stock
21,000
 
By Sheela’s Loan
13,000
Debtors
20,000
 
By Repairs and Renewals Reserve
1,200
Prepaid Insurance
400
 
By Cash – Assets sold :
 
Investments
3,000
54,400
Machinery
8,000
 
To Mala’s Capital A/c
13,000
Stock
14,000
 
             – Sheela’s Loan
 
Debtors
16,000
38,000
To Cash – Creditors paid
15,000
By Mala’s Capital Investments
2,000
To Cash – Dishonoured bill paid
5,000
 
 
To Cash Expenses
800
……………..
………….
 
88,200
 
88,200
 
 
 
 

 

Capital Accounts
Dr.
Cr.
Particulars
Mala
Rs
Neela
Rs
Kala
Rs
Particulars
Mala
Rs
Neela
Rs
Kala
Rs
………….
………….
………….
………….
………….
………….
………….
………….
………….
………….
 
 
………….
………….
 
 
To Cash
12,000
9,000
 
By Cash
 
 
1,000
 
23,000
15,000
3,000
 
23,000
15,000
3,000

 

Cash Account
Dr.
Cr.
Particulars
Amount
Rs
Particulars
Amount
Rs
To Balance b/d
2,800
By Realisation A/c
15,000
To Realisation A/c
38,000
                 – Creditors paid
 
                  – Sale of assets
 
 
 
To Kala’s Capital A/c
1,000
By Dishonoured bill
5,000
 
 
……………
………….
 
 
By Mala’s Capital A/c
12,000
 
 
By Neela’ s Capital A/c
9,000
 
41,800
 
41,800
 
 
 
 

View Solution
CBSE Board Paper 2015



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 realized 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 to complete these accounts by posting the correct amounts.

Realisation Account
Dr.   Cr.
Particulars Amount
Rs
Particulars Amount
Rs
To Stock 10,000 By Provision of 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 Bank:   By Mortgage Loan 15,000
  Sundry Creditors 16,000   By Bank-assets realized : 30,600
  Bills Payable 3,400     Stock 6,700  
  Mortgage Loan 15,000 34,400   Debtors 12,500  
To Bank (Outstanding repairs)   400 Plant & Machinery 36,000 55,200
To Bank (Exp.) 620 By Bank-unrecorded assets realized   6,220
    By ________  
  1,10,420   1,10,420
       

 

Capital Accounts
Dr.   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
               

 

Bank Account
Dr.     Cr.
Particulars Amount
Rs
Particulars Amount
Rs
To Balance b/d 19,500 By Relaisation (liabilities) 34,400
To Realisation (assets realized) 55,200 By Realisation (unrecorded liabilities) 400
________________ ____ By ____________ ____
    By ____________ ____
         
  80,920   80,920
       

View Solution
CBSE Board Paper 2015



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 realized 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 to complete these accounts by posting the correct amounts.

Realisation Account
Dr.   Cr.
Particulars Amount
Rs
Particulars Amount
Rs
To Stock 10,000 By Provision of 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 Bank:   By Mortgage Loan 15,000
  Sundry Creditors 16,000   By Bank-assets realized : 30,600
  Bills Payable 3,400     Stock 6,700  
  Mortgage Loan 15,000 34,400   Debtors 12,500  
To Bank (Outstanding repairs)   400 Plant & Machinery 36,000 55,200
To Bank (Exp.) 620 By Bank-unrecorded assets realized   6,220
    By ________  
  1,10,420   1,10,420
       

 

Capital Accounts
Dr.   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
               

 

Bank Account
Dr.     Cr.
Particulars Amount
Rs
Particulars Amount
Rs
To Balance b/d 19,500 By Relaisation (liabilities) 34,400
To Realisation (assets realized) 55,200 By Realisation (unrecorded liabilities) 400
________________ ____ By ____________ ____
    By ____________ ____
         
  80,920   80,920
       

View Solution
CBSE Board Paper 2015



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 realized 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 to complete these accounts by posting the correct amounts.

Realisation Account
Dr.   Cr.
Particulars Amount
Rs
Particulars Amount
Rs
To Stock 10,000 By Provision of 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 Bank:   By Mortgage Loan 15,000
  Sundry Creditors 16,000   By Bank-assets realized : 30,600
  Bills Payable 3,400     Stock 6,700  
  Mortgage Loan 15,000 34,400   Debtors 12,500  
To Bank (Outstanding repairs)   400 Plant & Machinery 36,000 55,200
To Bank (Exp.) 620 By Bank-unrecorded assets realized   6,220
    By ________  
  1,10,420   1,10,420
       

 

Capital Accounts
Dr.   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
               

 

Bank Account
Dr.     Cr.
Particulars Amount
Rs
Particulars Amount
Rs
To Balance b/d 19,500 By Relaisation (liabilities) 34,400
To Realisation (assets realized) 55,200 By Realisation (unrecorded liabilities) 400
________________ ____ By ____________ ____
    By ____________ ____
         
  80,920   80,920
       

View Solution
CBSE Board Paper 2015



Chopra, Shah and Patel were partners sharing profits in the ratio of 3 : 2 : 1. On 31.3.2014 their firm was dissolved. The assets were realized and liabilities were paid off. The accountant prepared Realisation Account, Partner's Capital Accounts and Cash Account but forgot to post few amounts in these accounts.

You are required to complete the below give accounts by posting correct amounts.
 

Realisation Account

Dr.

Cr.

Particulars

Amount

Rs.

Particulars

Amount

Rs.

To Plant and Machinery

1,60,000

By Sundry Creditors

1,50,000

To Stock

1,50,000

By Mrs. Chopra’s Loan

1,30,000

To Sundry Debtors

2,00,000

By Repairs and Renewals Reserve

12,000

To Prepaid Insurance

4,000

By Provision for Bad Debts

10,000

To Investments

30,000

By Cash A/c – (Assets sold) :

 

To Chopra’s Capital A/c

 

Plant

1,00,000

 

(Mrs. Chopra’s Loan)

1,30,000

Stock

1,20,000

 

To Cash A/c (Dishonoured Bill)

50,000

Debtors

1,60,000

3,80,000

To Cash (Creditors)

1,50,000

By Chopra’s Capital A/c (Investments)

20,000

To Cash (Expenses)

8,000

…………

……….

 

8,82,000

 

8,82,000

 

 

 

 

 

Partner’s Capital Accounts

Dr.

Cr.

Particulars

Chopra

Rs

Shah

Rs

Patel

Rs

Particulars

Chopra

Rs

Shah

Rs

Patel

Rs

To Realisation

20,000

 

 

By bal. b/d

 

 

 

(Investments)

 

 

 

 

 

 

 

…….

…….

…….

…….

By Realisation

1,30,000

 

 

 

 

 

 

(Loan)

 

 

 

…….

…….

…….

…….

…….

…….

…….

…….

 

2,30,000

1,50,000

30,000

 

2,30,000

1,50,000

30,000

 

Cash Account

Dr.

Cr.

Particulars

Amount

Rs

Particulars

Amount

Rs

…….

…….

By Realisation A/c (Dishonoured Bill)

50,000

…….

…….

By Realisation (Sundry Creditors)

1,50,000

To Patel’s Capital A/c

10,000

…….

…….

 

 

By Chopra’s Capital A/c

1,20,000

 

 

By Shah’s Capital A/c

90,000

 

4,18,000

 

4,18,000

 

 

 

 


View Solution
CBSE Board Paper 2015



Chopra, Shah and Patel were partners sharing profits in the ratio of 3 : 2 : 1. On 31.3.2014 their firm was dissolved. The assets were realized and liabilities were paid off. The accountant prepared Realisation Account, Partner's Capital Accounts and Cash Account but forgot to post few amounts in these accounts.

You are required to complete the below give accounts by posting correct amounts.
 

Realisation Account

Dr.

Cr.

Particulars

Amount

Rs.

Particulars

Amount

Rs.

To Plant and Machinery

1,60,000

By Sundry Creditors

1,50,000

To Stock

1,50,000

By Mrs. Chopra’s Loan

1,30,000

To Sundry Debtors

2,00,000

By Repairs and Renewals Reserve

12,000

To Prepaid Insurance

4,000

By Provision for Bad Debts

10,000

To Investments

30,000

By Cash A/c – (Assets sold) :

 

To Chopra’s Capital A/c

 

Plant

1,00,000

 

(Mrs. Chopra’s Loan)

1,30,000

Stock

1,20,000

 

To Cash A/c (Dishonoured Bill)

50,000

Debtors

1,60,000

3,80,000

To Cash (Creditors)

1,50,000

By Chopra’s Capital A/c (Investments)

20,000

To Cash (Expenses)

8,000

…………

……….

 

8,82,000

 

8,82,000

 

 

 

 

 

Partner’s Capital Accounts

Dr.

Cr.

Particulars

Chopra

Rs

Shah

Rs

Patel

Rs

Particulars

Chopra

Rs

Shah

Rs

Patel

Rs

To Realisation

20,000

 

 

By bal. b/d

 

 

 

(Investments)

 

 

 

 

 

 

 

…….

…….

…….

…….

By Realisation

1,30,000

 

 

 

 

 

 

(Loan)

 

 

 

…….

…….

…….

…….

…….

…….

…….

…….

 

2,30,000

1,50,000

30,000

 

2,30,000

1,50,000

30,000

 

Cash Account

Dr.

Cr.

Particulars

Amount

Rs

Particulars

Amount

Rs

…….

…….

By Realisation A/c (Dishonoured Bill)

50,000

…….

…….

By Realisation (Sundry Creditors)

1,50,000

To Patel’s Capital A/c

10,000

…….

…….

 

 

By Chopra’s Capital A/c

1,20,000

 

 

By Shah’s Capital A/c

90,000

 

4,18,000

 

4,18,000

 

 

 

 


View Solution
CBSE Board Paper 2015



Mala, Neela and Kala were partners sharing profits in the ratio of 3 : 2 : 1. On 1.3.2015 their firm was dissolved. The assets were realized and liabilities were paid off. The accountant prepared Realisation Account, Partners' Capital Accounts and Cash Account, but forgot to post few amounts in these accounts.

You are required to complete these below given accounts by posting correct amounts.
 

Realisation Account
Dr.
Cr.
Particulars
Amount
Rs
Particulars
Amount
Rs
To Sundry Assets :
 
By Provision for bad debts
1,000
Machinery
10,000
 
By Sundry Creditors
15,000
Stock
21,000
 
By Sheela’s Loan
13,000
Debtors
20,000
 
By Repairs and Renewals Reserve
1,200
Prepaid Insurance
400
 
By Cash – Assets sold :
 
Investments
3,000
54,400
Machinery
8,000
 
To Mala’s Capital A/c
13,000
Stock
14,000
 
             – Sheela’s Loan
 
Debtors
16,000
38,000
To Cash – Creditors paid
15,000
By Mala’s Capital Investments
2,000
To Cash – Dishonoured bill paid
5,000
 
 
To Cash Expenses
800
……………..
………….
 
88,200
 
88,200
 
 
 
 

 

Capital Accounts
Dr.
Cr.
Particulars
Mala
Rs
Neela
Rs
Kala
Rs
Particulars
Mala
Rs
Neela
Rs
Kala
Rs
………….
………….
………….
………….
………….
………….
………….
………….
………….
………….
 
 
………….
………….
 
 
To Cash
12,000
9,000
 
By Cash
 
 
1,000
 
23,000
15,000
3,000
 
23,000
15,000
3,000

 

Cash Account
Dr.
Cr.
Particulars
Amount
Rs
Particulars
Amount
Rs
To Balance b/d
2,800
By Realisation A/c
15,000
To Realisation A/c
38,000
                 – Creditors paid
 
                  – Sale of assets
 
 
 
To Kala’s Capital A/c
1,000
By Dishonoured bill
5,000
 
 
……………
………….
 
 
By Mala’s Capital A/c
12,000
 
 
By Neela’ s Capital A/c
9,000
 
41,800
 
41,800
 
 
 
 

View Solution
CBSE Board Paper 2015



Sarthak and Vansh are partners sharing profits in the ratio of 2 : 1. Since both of them are specially abled sometimes they find it difficult to run the business on their own. Mansi, a common friend, decides to help them. Therefore they admit her into partnership for 1/3rd share in profits. She brings Rs 60,000 for goodwill and proportionate capital. At the time of admission of Mansi, the Balance Sheet of Sarthak and Vansh was as under:

Liabilities

Amount

Rs

Assets

Amount

Rs

Capital Accounts:

 

Plant

66,000

Sarthak

70,000

 

Furniture

 

30,000

Vansh

60,000

1,30,000

Investments

 

40,000

General Reserve

18,000

Stock

46,000

Bank Loan

18,000

Debtors

38,000

 

Creditors

72,000

Less: Provision for Bad debts

−4,000

34,000

   

Cash

 

22,000

       
 

2,38,000

 

2,38,000

       

It was decided to

(i) Reduce the value of Stock by Rs 10,000.

(ii) Plant is to be valued at Rs 80,000.

(iii) An amount of Rs 3,000 included in Creditors was not payable.

(iv) Half of the Investments were taken over by Sarthak and remaining were valued at Rs 25,000

Prepare Revaluation Account, Partners’ Capital Accounts and Balance Sheet of reconstituted firm. Identify the value being conveyed in the question. (8)

OR

Prashant and Rajesh were partners in a firm sharing profits in the ratio of 3 : 2. In spite of repeated reminders by the authorities, they kept dumping hazardous material into a nearby river. The court ordered for the dissolution of their partnership firm on 31st March 2012. Prashant was deputed to realise the assets and to pay the liabilities. He was paid Rs 1,000 as commission for his services. The financial position of the firm on 31st March 2012 was as follows:

Balance Sheet as on 31st March 2012

Liabilities

Amount

Rs

Assets

Amount

Rs

Creditors

80,000

Building

1,20,000

Mrs. Prashant’s Loan

40,000

Investments

30,000

Rajesh’s Loan

24,000

Debtors

34,000

 

Investment

8,000

Less:

Provision for doubtful debts

−4,000

30,000

Fluctuation Fund

Capitals:

 

Bills Receivable

 

37,400

Prashant

:

42,000

 

Cash

 

6,000

Rajesh

:

42,000

84,000

Profit and Loss A/c

 

8,000

   

Goodwill

 

4,000

 

2,36,000

 

2,36,000

       

Following was agreed upon:

(i) Prashant agreed to pay off his wife’s loan.

(ii) Debtors realized Rs 24,000.

(iii) Rajesh took away all investments at Rs 27,000.

(iv) Building realized Rs 1,52,000.

(v) Creditors were payable after 2 months. They were paid immediately at 10% discount.

(vi) Bills Receivable were settled at a loss of Rs 1,400.

(vii) Realisation expenses amounted to Rs 2,500.

Prepare Realisation Account, Partners’ Capital Accounts and Cash Account to close the books of the firm. Identify the value being conveyed in the question.


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CBSE Board Paper 2013



Sahaj and Nimish are partners in a firm. They share profits and losses in the ratio of 2 : 1. Since both of them are specially abled, sometimes they find it difficult to run the business on their own. Gauri, a common friend decides to help them. Therefore, they admitted her into partnership for a 1/3rd share. She brought her share of goodwill in cash and proportionate capital. At the time of Gauri’s admission, the Balance sheet of Sahaj and Nimish was as under:

Liabilities

Amount

(Rs)

Assets

Amount

(Rs)

Capital Accounts:

 

Machinery

1,20,000

Sahaj

1,20,000

 

Furniture

80,000

Nimish

80,000

2,00,000

Stock

50,000

General Reserve

30,000

Sundry Debtors

30,000

Creditors

30,000

Cash

20,000

Employees’ Provident Fund

40,000

   
 

3,00,000

 

3,00,000

       

It was decided to:

(a) Reduce the value of stock by Rs 5,000.

(b) Depreciate furniture by 10% and appreciate machinery by 5%.

(c) Rs 3,000 of the debtors proved bad. A provision of 5% was to be created on Sundry Debtors for doubtful debts.

(d) Goodwill of the firm was valued at Rs 45,000.

Prepare Revaluation Account, Partners’ Capital Accounts and Balance Sheet of the reconstituted firm. Identify the value being conveyed in the question. (8)

OR

Prachi, Ritika and Ishita were partners in a firm sharing profits and losses in the ratio of 5 : 3 : 2. Inspite of repeated reminders by the authorities, they kept dumping hazardous material into a nearby river. The court ordered for the dissolution of their partnership firm on 31st March 2012. Prachi was deputed to realise the assets and pay the liabilities. She was paid Rs 1,000 as commission for her services. The financial position of the firm was as follows:

Liabilities

Amount

(Rs)

Assets

Amount

(Rs)

Creditors

10,000

Furniture

37,000

Investment Fluctuation Fund

4,500

Stock

5,500

Capitals:

 

Investments

15,000

Prachi

40,000

Cash

9,000

Ritika

30,000

Ishita’s Capital

18,000

 

84,500

 

84,500

       

Following was agreed upon:

Prachi took over investments for Rs 12,500. Stock and furniture realized Rs 41,500. There was old furniture which has been written off completely from the books. Ritika agreed to take away the same at the price of Rs 3,000. Compensation paid to the employees amounted to Rs 8,000. This liability was not provided in the above Balance Sheet. Realization expenses amounted to Rs 1,000. Prepare Realisation Account, Partner’s Capital Accounts and Cash A/c to close the books of the firm.

Also identify the value being conveyed in the question.


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CBSE Board Paper 2013



Sahaj and Nimish are partners in a firm. They share profits and losses in the ratio of 2 : 1. Since both of them are specially abled, sometimes they find it difficult to run the business on their own. Gauri, a common friend decides to help them. Therefore, they admitted her into partnership for a 1/3rd share. She brought her share of goodwill in cash and proportionate capital. At the time of Gauri’s admission, the Balance sheet of Sahaj and Nimish was as under:

Liabilities

Amount

(Rs)

Assets

Amount

(Rs)

Capital Accounts:

 

Machinery

1,20,000

Sahaj

1,20,000

 

Furniture

80,000

Nimish

80,000

2,00,000

Stock

50,000

General Reserve

30,000

Sundry Debtors

30,000

Creditors

30,000

Cash

20,000

Employees’ Provident Fund

40,000

   
 

3,00,000

 

3,00,000

       

It was decided to:

(a) Reduce the value of stock by Rs 5,000.

(b) Depreciate furniture by 10% and appreciate machinery by 5%.

(c) Rs 3,000 of the debtors proved bad. A provision of 5% was to be created on Sundry Debtors for doubtful debts.

(d) Goodwill of the firm was valued at Rs 45,000.

Prepare Revaluation Account, Partners’ Capital Accounts and Balance Sheet of the reconstituted firm. Identify the value being conveyed in the question. (8)

OR

Prachi, Ritika and Ishita were partners in a firm sharing profits and losses in the ratio of 5 : 3 : 2. Inspite of repeated reminders by the authorities, they kept dumping hazardous material into a nearby river. The court ordered for the dissolution of their partnership firm on 31st March 2012. Prachi was deputed to realise the assets and pay the liabilities. She was paid Rs 1,000 as commission for her services. The financial position of the firm was as follows:

Liabilities

Amount

(Rs)

Assets

Amount

(Rs)

Creditors

10,000

Furniture

37,000

Investment Fluctuation Fund

4,500

Stock

5,500

Capitals:

 

Investments

15,000

Prachi

40,000

Cash

9,000

Ritika

30,000

Ishita’s Capital

18,000

 

84,500

 

84,500

       

Following was agreed upon:

Prachi took over investments for Rs 12,500. Stock and furniture realized Rs 41,500. There was old furniture which has been written off completely from the books. Ritika agreed to take away the same at the price of Rs 3,000. Compensation paid to the employees amounted to Rs 8,000. This liability was not provided in the above Balance Sheet. Realization expenses amounted to Rs 1,000. Prepare Realisation Account, Partner’s Capital Accounts and Cash A/c to close the books of the firm.

Also identify the value being conveyed in the question.


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CBSE Board Paper 2013



Sahaj and Nimish are partners in a firm. They share profits and losses in the ratio of 2 : 1. Since both of them are specially abled, sometimes they find it difficult to run the business on their own. Gauri, a common friend decides to help them. Therefore, they admitted her into partnership for a 1/3rd share. She brought her share of goodwill in cash and proportionate capital. At the time of Gauri’s admission, the Balance sheet of Sahaj and Nimish was as under:

Liabilities

Amount

(Rs)

Assets

Amount

(Rs)

Capital Accounts:

 

Machinery

1,20,000

Sahaj

1,20,000

 

Furniture

80,000

Nimish

80,000

2,00,000

Stock

50,000

General Reserve

30,000

Sundry Debtors

30,000

Creditors

30,000

Cash

20,000

Employees’ Provident Fund

40,000

   
 

3,00,000

 

3,00,000

       

It was decided to:

(a) Reduce the value of stock by Rs 5,000.

(b) Depreciate furniture by 10% and appreciate machinery by 5%.

(c) Rs 3,000 of the debtors proved bad. A provision of 5% was to be created on Sundry Debtors for doubtful debts.

(d) Goodwill of the firm was valued at Rs 45,000.

Prepare Revaluation Account, Partners’ Capital Accounts and Balance Sheet of the reconstituted firm. Identify the value being conveyed in the question. (8)

 

OR

 

Prachi, Ritika and Ishita were partners in a firm sharing profits and losses in the ratio of 5 : 3 : 2. Inspite of repeated reminders by the authorities, they kept dumping hazardous material into a nearby river. The court ordered for the dissolution of their partnership firm on 31st March 2012. Prachi was deputed to realise the assets and pay the liabilities. She was paid Rs 1,000 as commission for her services. The financial position of the firm was as follows:

 

Liabilities

Amount

(Rs)

Assets

Amount

(Rs)

Creditors

10,000

Furniture

37,000

Investment Fluctuation Fund

4,500

Stock

5,500

Capitals:

 

Investments

15,000

Prachi

40,000

Cash

9,000

Ritika

30,000

Ishita’s Capital

18,000

 

84,500

 

84,500

       

Following was agreed upon:

Prachi took over investments for Rs 12,500. Stock and furniture realized Rs 41,500. There was old furniture which has been written off completely from the books. Ritika agreed to take away the same at the price of Rs 3,000. Compensation paid to the employees amounted to Rs 8,000. This liability was not provided in the above Balance Sheet. Realization expenses amounted to Rs 1,000. Prepare Realisation Account, Partner’s Capital Accounts and Cash A/c to close the books of the firm.

Also identify the value being conveyed in the question.


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CBSE Board Paper 2013



A, B and C were partners sharing profits in the ratio of 3 : 1 : 1. Their Balance-Sheet as on March 31st 2009, the date on which they dissolve their firm, was as follows:

Liabilities

Amount

Rs

Assets

Amount

Rs

Capitals:

 

Sundry Assets

17,000

A

27,500

 

Stock

7,800

B

10,000

 

Debtors

24,200

 

C

7,000

44,500

Less: Provision for doubtful debts

1,200

23,000

Loan

1,500

Bills Receivable

1,000

Creditors

6,000

Cash

3,200

 

52,000

 

52,000

 

 

 

 

It was agreed that:

(a) A to take over Bills Receivable at Rs 800, debtors amounting to Rs 20,000 at 17,200 and the creditors of Rs 6,000 were to be paid by him at this figure.

(b) B is to take over all stock for Rs 7,000 and some sundry assets at Rs 7,200 (being 10% less than the book value)

(c) C to take over remaining sundry assets at 90% of the book value and assume the responsibility of discharge of loan together with accrued interest of Rs 300.

(d) The expenses of realization were Rs 270

The remaining debtors were sold to a debt collecting agency at 50% of the book value. Prepare Realisation A/c, Partners Capital A/c and Cash A/c

 

OR

The Balance Sheet of Ram and Shyam, who were sharing profits in the ratio of 3 : 1 on 31st March, 2009 was as follows:

Liabilities

Amount

Rs

Assets

Amount

Rs

Creditors

2,800

Cash at bank

2,000

Employees’ provident fund

1,200

Debtors

6,500

 

General Reserve

2,000

Less: Reserve for bad debts

(500)

6,000

Capitals

 

Stock

3,000

Ram

6,000

 

Investments

5,000

Shyam

4,000

10,000

 

 

 

16,000

 

16,000

 

 

 

 

They decided to admit, Mohan on April 1st 2008 for 1/5th share on the following terms:

(i) Mohan shall brings Rs 6,000 as his share of premium.

(ii) That unaccounted accrued income of Rs 100 be provided for.

(iii) The market value of investment was Rs 4,500.

(iv) A debtor whose dues of Rs 500 was written off as bad debts paid Rs 400 in full settlement.

(v) Mohan to bring in capital to the extent of 1/5th of the total capital of the new firm.

Prepare Revaluation A/c, Partners Capital A/c and the Balance Sheet of the new firm.

 


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CBSE Board Paper 2010



A, B and C were partners sharing profits in the ratio of 3 : 1 : 1. Their Balance-Sheet as on March 31st 2009, the date on which they dissolve their firm, was as follows:

Liabilities

Amount

Rs

Assets

Amount

Rs

Capitals:

 

Sundry Assets

17,000

A

27,500

 

Stock

7,800

B

10,000

 

Debtors

24,200

 

C

7,000

44,500

Less: Provision for doubtful debts

(1,200)

23,000

Loan

1,500

Bills Receivable

1,000

Creditors

6,000

Cash

3,200

 

52,000

 

52,000

 

 

 

 

It was agreed that:

(a) A to take over Bills Receivable at Rs 800, debtors amounting to Rs 20,000 at 17,200 and the creditors of Rs 6,000 were to be paid by him at this figure.

(b) B is to take over all stock for Rs 7,000 and some sundry assets at Rs 7,200 (being 10% less than the book value)

(c) C to take over remaining sundry assets at 90% of the book value and assume the responsibility of discharge of loan together with accrued interest of Rs 300.

(d) The expenses of realization were Rs 270

The remaining debtors were sold to a debt collecting agency at 50% of the book value. Prepare Realisation A/c, Partners Capital A/c and Cash A/c

OR

On 31st March, 2009 the Balance Sheet of Ram and Shyam, who were sharing profits in the ratio of 3 : 1 was as follows:

Liabilities

Amount

Rs

Assets

Amount

Rs

Creditors

2,800

Cash at bank

2,000

Employees’ provident fund

1,200

Debtors

6,500

 

General Reserve

2,000

Less: Reserve for bad debts

(500)

6,000

Capitals

 

Stock

3,000

Ram

6,000

 

Investment

5,000

Shyam

4,000

10,000

 

 

 

16,000

 

16,000

 

 

 

 

They decided to admit, Mohan on April 1st 2008 for 1/5th share on the following terms:

(i) Mohan shall bring Rs 6,000 as his share of premium.

(ii) That unaccounted accrued income of Rs 100 be provided for.

(iii) The market value of investment was Rs 4,500.

(iv) A debtor whose dues of Rs 500 was written off as bad debts paid Rs 400 in full settlement.

(v) Mohan to brings in capital to the extent of 1/5th of the total capital of the new firm.

Prepare Revaluation A/c, Partners Capital A/c and the Balance Sheet of the new firm.


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CBSE Board Paper 2010



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