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What is a Realisation
in dissolution , what is the accounting treatment of loan , which appear in the question`s balance sheet ?
The following is the balance sheet of A and B as at 31st March, 2014:
Mrs. A's Loan - 15000
Mrs. B' Loan - 10000
Trade Creditors - 30000
Bills Payable - 10000
Outstanding Expenses - 5000
A: Capital - 100000
B: Capital - 80000
Cash - 4200
Bank - 3400
Less: Provision - 2000
Investments - 10000
Stock - 40000
Truck - 75000
Plant and Machinery - 80000
B : Drawings - 9400
1) Half of the stock was sold at 10% less than the book value and the remaining half was taken over by A at 20% more than the book value.
2) During the course of dissolution a liability under action for damages was settled at 12000 against 10000 included in the creditors.
3) Assets realised as follows-
Plant machinery- 100000 ; Truck-120000; Goodwill was sold for 25000 ; Bad Debts amounted to 5000 ; Half the investments were sold at book value.
4) A promised to pay off Mrs.A's Loan and took away half the investments at 10% discount.
5) Trade Creditors and Bills Payable were due on average basis of one month after 31st march, but were paid immediately on 31st march, at 12% discount p.a.
Prepare Necessary Accounts
do we distribute employee provident fund to partners at the time of :
1. admission/ retirement
2. dissolution( is it treated the same way as reserve fund ?)
WHEN A LIABILITY IS TO BE DISCHARGED BY A PARTNER WHY IS HIS CAPITAL ACCOUNT CREDITED?
experts please tell me the treatment of workmen compensation reserve/fund and employees provident fund in the dissolution chapter
how to treat joint life policy in dissolution of partnership when surrender value is given ?
State the difference
between dissolution of partnership and dissolution of partnership
1) mohit paid realisation expenses of rs 18000 out of his private fund ,who was to get remuneration of rs 13000 for completing the dissolution process and was responsible to bear all the realisation expenses.
2)Priyanka paid the realisation expenses of rs 15000 out of her pocket and she was to get a remuneration of rs 18000 for completing the dissolution process
report on procedure of winding up partnership firm
firm’s debts and partner’s private debts.
Why investment fluctuation reserve is not credited to partner's capital a/c in case of dissolution of firm?
plz provide me a solution of divya sharma vk pulisher of accountancy class 12
solution of vk ohri and tr jain of economics class 12
sanjay , tarun and vineet shared profit in the ratio 3:2:1. on december 31,2006 there balance sheet was as follows:
sanjay capital 1,00,000 , tarun capital 1,00,000 , vineet capital 70,000 , creditors 80,000 , bills payable 30,000
plant 90,000 , debtors 60,000 , furniture 32,000 , stock 60,000 , investment 70,000 , bills receivable 36,000 , cash in hand 32,000
on this date the firm was dissolved .. sanjay was appointed to realise the assets . sanjay was to receive 6% commission on the sale of assets and was bear all expenses of realisation .
sanjay realised the assets as fllow : plant rs. 72,000 , debtors rs. 54,000 , furniture rs. 18,000 , stock rs. 90% of the book value , investment rs 76,000 and bills receivable rs. 31,000 . expenses of the realisation amounted to rs. 4,500 .
prepare realisation account, capital accounts and cash accounts
diffrence between memorandum balancesheet and balance sheet
The following is the balance sheet of A and B as on 31.12.1993:
laibilities amount asset amount
creditors 30,000 cash 500
B/p 8,000 Bank 8,000
mrs.A's loan 5,000 stock 5,000
mrs b's loan 10,000 investment 10,000
general reserve 10,000 debtors 20,000-2,000(provision) 18,000
IFF 1,000 plant 20,000
a's capital 10,000 building 15,000
B's capital 10,000 goodwill 4,000
advertisement suspense 3,500
The firm was dissolved on 31.12.1993 on the following terms:
What is the journal entry for advertisement suspense account amounted to rs. 28000 which is shown in the asset side of the balance of the balance sheet??
pass the journal entries at the time of dissolution of firm :
(a). ramesh, a partner was paid remuneration of rs.25000 and he was to meet all expenses.
(b). anuj , a partner was paid remuneration of rs.20000 and he was to meet all expenses. firm paid an expense of rs.5000.
(c). realisation expenses amounted to rs.10000 were paid by the firm on behalf of alok, a partner, with whom it was agreed at rs.7500.
(d). realisation expenses amounted to rs. 5000. it was agreed that firm will pay rs.2000 and balance by ravinder , a partner.
(e). realisation expenses amounted to rs.15000. the firm had agreed with amrit , a partner, to reimburse him upto rs.10000
Y Ltd. forfeited 90 shares of ` 10 each, ` 8 called up issued at a premium of ` 2 per share to
mrs. rita choudhary took over 50 percent of stock at 20 percent discount.
balance of the stock was sold off at a profit of 30 percent on cost.
i want to know the about for both the above adjustments.
Explain the process of
dissolution of a partnership firm?
State the accounting
i. Unrecorded assets
nature of realisation account is nomial i know but my teacher is notaccepted.it is real nature why why....
why prepaid expenses appear in realisation accounts as it cannot be realised?
in case of dissolution of a firm which item on the liability side are to be paid last?
1-In the notes of (chapter-retirement and death of a partner) it is written that if there is no adjustment related to WCF, IFF, contingency reserves, then they will not be trahferred to partner's capital account and will be shown in balance sheet. please tell what's the logic behind it?
A firm is dissolved. building is auctioned, and auctioneer's commission is 1000. How will auctioneer's commission be treated?
please help me with the different cases of realisation expenses...grrhh m confused...
J, S and R were in partnership sharing profts and losses in the ratio of 3:2:1. Therir balance sheet as on 31st Decmebr, 1999 was as follows:
Reserve Fund: 6,000
Employees' Provident Fund: 6,000
Depreciation Reserve 10,000
Joint Life Policy 12,400
Accrued Interest 2,000
It was agreed to dissolve the firm and the terms of the dissolution were:
Prepare Realisation account , Capital accoounts and Cash account.
ALSO EXPLAIN ME THE TREATMENT FOR EMPLOYEES PROVIDENT FUND AND DEPRECIATION RESERVE.
dk goel dissolution q48
Journal entry for payment of unrecorded liabilities in cash is given as-
Cash/Bank A/c Dr.
To Realisation A/c
The same entry is given for the recording of the sale of unrecorded assets. Why is it so?
how to calculate realisation a/c??? any easy method to keep in our memory in dissoution of partnership firm
What is the treatment of deferred revenue expenditure at the time of dissolution of a partnership firm?
in dissolution when realisation expenses are to be borne by a partner for which he is given commission amount is given and the actual expenses are also given the comission amount will be debited to realisation a/c and how will the actual expenses be shown?
what is the treatment of investment fluctuation fund in dissolution of a firm??
how are unrecorded assets treated in realisation account?
what is treatment of partner"s commission in dissolution of firm
If workman compensation claim appears in balance sheet, what will be its treatment on dissolution?
Shilpa,Meena and Nanda decided to dissolve their partnershipon March 31,2006. Their profit sharing ratio was 3:2:1and their Balance Sheet was as under:
Balance Sheet of Shilpa, Meena and Nanda as on March 31, 2006
Nanda’s Capital Account
Provision for doubtful debts
The stock of value of Rs 41,660 are taken over by Shilpa for Rs 35,000 and she agreed to discharge bank loan.The remaining stock was sold at Rs 14,000 and debtors amounting to Rs 10,000 realised Rs 8,000. land is soldfor Rs 1,10,000. The remaining debtors realised 50%at their book value. Cost of Realisation amounted toRs 1,200. There was a typewriter not recorded in the books worth Rs 6,000 whichwere taken over by one of the Creditors at this value. Prepare Realisation Account.
1. IF WORKMEN COMPENSATION FUND IS GIVEN ONLY IN BALANCE SHEET , WHAT IS THE TREATMENT?
2. WHAT IS THE TREARTMENT FOR INVESTMENT FLUCTUATION FUND?
3. WHAT IS THE TREATMENT FOR LOAN AND BANK LOAN GIVEN IN BALANCE SHEET?
4. WHAT IS THE TREATMENT FOR" REALISATION EXPENSES IS TO BE PAID BY 'A' PERSONALLY OUT OF FIRMS ACCOUNT?
5. WHAT IS THE TREATMENT OF JOINT LIFE POLICY IF GIVEN IN BALANCE SHEET?
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