The assets were realised and the liabilities were paid as under:
(i) Arnab agreed to pay his brother's loan.
(ii) Investments realised 20% less.
(iii) Creditors were paid at 10% less.
(iv) Building was auctioned for Rs.. 3,55,000 Commission on auction was 5,000/ -.
(V) 50% of the stock was taken over by Ragini at market price which was 20% less than
book value and the remaining was sold at market price.
(vi) Dissolution expenses were Rs.. 8,000. Rs. 3,000 were to be borne by the firm and the balance
by Dhrupad. The expenses were paid by him.
Realisation Account, Bank Account and Partners' Capital Accounts.
Other Sudry Assets
Furniture
Books Debts 1,24,200
Less: proision for D.D. ( 1,200)
Stock
Cash
1,17,000
11,000
1,23,000
17,800
13,200
2,82,000
2,82,000
It was agreed that.
a) X to take over fumiture at Rs.8,000 and debtors amounting to Rs. 1,20,000 at 1,17,200 and the creditors of Rs.16,000 were to be paid by him at this figure.
b) Y is to take over all the stock for Rs. 17,000 and some sundry assets at Rs.72,000 ( being 10% less than the book value)
c) Z to take over remaining sundry assets at 80% of the book value ands assume the responsibility of discharge of Bank overdraft together with accrued interest of Rs.2,300.
d) The expense of realization were Rs.2,700 which were to be borne by X. But was paid by the firm.
e) The remaining debtors were sold to a debt collecting agency at 50% of the value.
Prepare necessary ledger accounts to close the books of the firm.
The assets were realised as follows .
• Stock 20,000; Bills Receivable 3,800:
Furniture Rs 5,100; Plant & Machinery Rs. 35,000; Sundry Debtors at 10% less than book.
Creditors allowed a discount of 5 % Pritam agreed to pay his wife's loan. Naresh agreed to guy outstanding rent. Expenses on dissolution came to Rs. 800.
Pritam and Naresh shared profits and losses in the ratio of their Capitals. Accounts were finally settled.
Journal, Realisation Account, Capital Accounts and Bank Account
What is a Realisation Account?
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 ?)
in dissolution , what is the accounting treatment of loan , which appear in the question`s balance sheet ?
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 ?
The assets were realised and the liabilities were paid as under:
(i) Arnab agreed to pay his brother's loan.
(ii) Investments realised 20% less.
(iii) Creditors were paid at 10% less.
(iv) Building was auctioned for Rs.. 3,55,000 Commission on auction was 5,000/ -.
(V) 50% of the stock was taken over by Ragini at market price which was 20% less than
book value and the remaining was sold at market price.
(vi) Dissolution expenses were Rs.. 8,000. Rs. 3,000 were to be borne by the firm and the balance
by Dhrupad. The expenses were paid by him.
Realisation Account, Bank Account and Partners' Capital Accounts.
State the difference between dissolution of partnership and dissolution of partnership firm.
report on procedure of winding up partnership firm
MG Rathi
The following is the balance sheet of A and B as at 31st March, 2014:
liabilities:-
Mrs. A's Loan - 15000
Mrs. B' Loan - 10000
Trade Creditors - 30000
Bills Payable - 10000
Outstanding Expenses - 5000
A: Capital - 100000
B: Capital - 80000
Total= 250000
Assets:-
Cash - 4200
Bank - 3400
Debtors: 30000
Less: Provision - 2000
Investments - 10000
Stock - 40000
Truck - 75000
Plant and Machinery - 80000
B : Drawings - 9400
Total 250000
Adjustments---
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
Why investment fluctuation reserve is not credited to partner's capital a/c in case of dissolution of firm?
Distinguish between firm’s debts and partner’s private debts.
plz provide me a solution of divya sharma vk pulisher of accountancy class 12
and
solution of vk ohri and tr jain of economics class 12
diffrence between memorandum balancesheet and balance sheet
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
why prepaid expenses appear in realisation accounts as it cannot be realised?
Explain the process of dissolution of a partnership firm?
What is the treatment of deferred revenue expenditure at the time of dissolution of a partnership firm?
State the accounting treatment for:
i. Unrecorded assets
ii. Unrecorded liabilities
nature of realisation account is nomial i know but my teacher is notaccepted.it is real nature why why....
WHEN A LIABILITY IS TO BE DISCHARGED BY A PARTNER WHY IS HIS CAPITAL ACCOUNT CREDITED?
A firm is dissolved. building is auctioned, and auctioneer's commission is 1000. How will auctioneer's commission be treated?
transferred to Realisation A/c:
(i) An unrecorded asset of R40,000 was given to an unrecorded creditor of R60,000 in
settlement of his claim of R45,000 and the balance was paid to him in cash.
(ii) A Motorbike which was not recorded in the books was taken over by Charu at
10,000, whereas its expected value was 15,000.
(iil) Creditors, to whom the firm owed R50,000, accepted stock of 30,000 at a discount
of 20% and the balance in cash.
(iv) X, an old customer, whose account for T20,000 was written off as bad in the previous year, paid 40% of the amount written off.
(v) Esha paid the realisation expenses of R20,000 out of her pocket and she was to get a fixed remuneration of R25,000 for completing the dissolution process. (vi) Divya's loan of T40,000 was discharged at 42,000.?
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?
please help me with the different cases of realisation expenses...grrhh m confused...
dk goel dissolution q48
Q. X, Y and Z were partners sharing profits in the ratio 2 : 2 : 1. their balance sheet as on 31st March, 2010, when they dissolved the firm was as follows :
x
y
z
Ban Overdraft
Creaditor
1,27,500
1,10,000
17,000
11,500
16,00
Furniture
Books Debts 1,24,200
Less: proision for D.D. ( 1,200)
Stock
Cash
11,000
1,23,000
17,800
13,200
a) X to take over fumiture at Rs.8,000 and debtors amounting to Rs. 1,20,000 at 1,17,200 and the creditors of Rs.16,000 were to be paid by him at this figure.
b) Y is to take over all the stock for Rs. 17,000 and some sundry assets at Rs.72,000 ( being 10% less than the book value)
c) Z to take over remaining sundry assets at 80% of the book value ands assume the responsibility of discharge of Bank overdraft together with accrued interest of Rs.2,300.
d) The expense of realization were Rs.2,700 which were to be borne by X. But was paid by the firm.
e) The remaining debtors were sold to a debt collecting agency at 50% of the value.
Prepare necessary ledger accounts to close the books of the firm.
how to calculate realisation a/c??? any easy method to keep in our memory in dissoution of 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?
sir ,
what to do if nothing is given about the realisation of assets at the time of dissolution of the firm .
according to your solutions ; assets remain unrealised and according to ncert they are realised at book value ..
in your notes you stated that both methods can be adopted
so can you answer how both hold corect and help me out of the situation with some example ..
thanking you in advance
what is the treatment of investment fluctuation fund in dissolution of a firm??
If workman compensation claim appears in balance sheet, what will be its treatment on dissolution?
what is treatment of partner"s commission in dissolution of firm
how are unrecorded assets treated in realisation account?
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?
• Stock 20,000; Bills Receivable 3,800:
Furniture Rs 5,100; Plant & Machinery Rs. 35,000; Sundry Debtors at 10% less than book.
Creditors allowed a discount of 5 % Pritam agreed to pay his wife's loan. Naresh agreed to guy outstanding rent. Expenses on dissolution came to Rs. 800.
Pritam and Naresh shared profits and losses in the ratio of their Capitals. Accounts were finally settled.
Journal, Realisation Account, Capital Accounts and Bank Account
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:
Liabilities:
Capital Accounts
J:24,000
S: 17,200
R: 20,800
Reserve Fund: 6,000
Employees' Provident Fund: 6,000
Depreciation Reserve 10,000
Creditors 22,000
Total: 1,06,000
ASSETS:
Buldings: 20,000
Plant: 44,000
Stock 12000
Joint Life Policy 12,400
Debtors 10,000
Accrued Interest 2,000
Cash 5,600
Total: 1,06,000
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.