CBSE 2022 · Region 1 · Set 1 · Q7

Chanda, Tara and Nisha were partners in a firm sharing profits and losses in the ratio of $\displaystyle 3$ : $\displaystyle 2$ : 1. They decided to dissolve the firm on 31st March, 2021. Pass necessary Journal Entries for the following transactions after all assets (other than cash and bank) and third party liabilities have been transferred to Realisation Account. (i) A typewriter completely written off from the books was sold for ₹ $\displaystyle 9$,000. (ii) Chanda took over stock worth ₹ $\displaystyle 96,000$ at ₹ $\displaystyle 84$,000. (iii) Nisha was to get remuneration of ₹ $\displaystyle 42,000$ for completing the dissolution process. (iv) Creditors of ₹ $\displaystyle 23,500$ took over all the investments at ₹ $\displaystyle 10$,000. Remaining amount was paid to them in Cash. (v) Sundry Creditors amounting to ₹ $\displaystyle 40,000$ were settled at a discount of $\displaystyle 10$%.

OR

Hcena, Mina and Tina are partners in a firm sharing profits and losses equally. Their Balance Sheet on April 1st, $\displaystyle 2020$ was as follows : Balance Sheet of Heena, Meena & Tina as on 1st April, $\displaystyle 2020$ Liabilities Amount Assets Amount co a) Bills Payable $\displaystyle 12,000$ Building $\displaystyle 40,000$ Sundry Creditors $\displaystyle 18,000$ Machinery $\displaystyle 30,000$ General Reserve $\displaystyle 12,000$ Furniture $\displaystyle 12,000$ Capitals :Heena $\displaystyle 30,000$ Stock $\displaystyle 22,000$ Meena $\displaystyle 30,000$ Debtors $\displaystyle 20,000$ Tina $\displaystyle 28,000$ Less : Provision for doubtful debts $\displaystyle 1.000$ $\displaystyle 19,000$ Bank $\displaystyle 7,000$ $\displaystyle 1,30,000$ $\displaystyle 1,30,000$ Tina retired from the firm on the above date and the following was agreed upon : (a) Building was to be appreciated by $\displaystyle 20$%. (b) Machinery was to be depreciated by ₹ $\displaystyle 1$,500. ($\displaystyle 0$) Provision for doubtful debts was to be increased to ₹ $\displaystyle 1$,500. (d) Goodwill was valued at ₹ $\displaystyle 21,000$ on Tina's rctirerncnt and the same was to be treated without opening goodwill account. (e) The balance in Tina's Capital account will be transferred to her Loan account. Prepare Revaluation Account and Partners' Capital Accounts.