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Accountancy · 2025 · 6 marks
Dissolution of Partnership FirmAccounting Treatment on Dissolution of a Partnership Firm6 markslong answer
CBSE 2025 · Region 5 · Set 3 · Q25
Guru, Samta and Prakash were partners in a firm sharing profits and losses in the ratio of 2: 3: 5. On 31st March, 2024, their Balance Sheet was as…
Guru, Samta and Prakash were partners in a firm sharing profits and losses in the ratio of $\displaystyle 2$ : $\displaystyle 3$ : 5. On 31st March, $\displaystyle 2024$, their Balance Sheet was as follows :
Balance Sheet of Guru, Samta and Prakash as at 31st March, $\displaystyle 2024$
On the above date the firm was dissolved and the following transactions took place : (i) Debtors were taken over by the creditors in full settlement of their account. (ii) $\displaystyle 50$% of the stock was taken over by Samta at $\displaystyle 10$% less than the book value. The remaining stock was sold at a profit of $\displaystyle 20$%. (iii) Land and Building was taken over by Prakash at ₹ $\displaystyle 20,00,000$ and $\displaystyle 2$° Plant and Machinery was sold as scrap for ₹ $\displaystyle 1,00$,000. (iv) Guru agreed to pay off Mrs. Guru's loan. (v) Realisation expenses were $\displaystyle 56$,000. Prepare Realisation Account.
| Liabilities | Amount (₹) | Assets | Amount (₹) |
| Creditors | $\displaystyle 4,20,000$ | Cash at Bank | $\displaystyle 3,10,000$ |
| Mrs. Guru's Loan | $\displaystyle 5,00,000$ | Stock | $\displaystyle 6,00,000$ |
| Samta's Loan | $\displaystyle 4,40,000$ | Debtors $\displaystyle 3,90,000$ | |
| Capitals : | Less : Provision for doubtful debts $\displaystyle 10,000$ | $\displaystyle 3,80,000$ | |
| Guru $\displaystyle 3,00,000$ | Land and Building | $\displaystyle 4,14,000$ | |
| Samta $\displaystyle 5,00,000$ | Plant and Machinery | $\displaystyle 9,00,000$ | |
| Prakash $\displaystyle 4,44,000$ | $\displaystyle 12,44,000$ | ||
| $\displaystyle 26,04,000$ | $\displaystyle 26,04,000$ |
Marking-scheme solution
Dr. Realisation A/c Cr.
Particulars Amount Particulars Amount
( ) ( )
To Sundry Assets: By Sundry Liabilities:
Stock $\displaystyle 6,00,000$ Creditors $\displaystyle 4,20,000$
Debtors $\displaystyle 3,90,000$ Mrs. Guru’s Loan $\displaystyle 5,00,000$
Land & Building $\displaystyle 4,14,000$ Provision for doubtful debts $\displaystyle 10,000$ $\displaystyle 9,30,000$
Plant & Machinery $\displaystyle 9,00,000$ $\displaystyle 23,04,000$
By Samta’s Capital A/c (Stock) $\displaystyle 2,70,000$
To Guru’s Capital A/c $\displaystyle 5,00,000$
(Mrs. Guru’s Loan) By Prakash’s Capital A/c $\displaystyle 20,00,000$
(Land & Building)
To Bank A/c $\displaystyle 56,000$
(Realisation expenses ) By Bank A/c:
Stock $\displaystyle 3,60,000$
To Profit transferred to: Plant & Machinery $\displaystyle 1,00,000$ $\displaystyle 4,60,000$
Guru’s Capital A/c $\displaystyle 1,60,000$
Samta’s Capital A/c $\displaystyle 2,40,000$ $\displaystyle 8,00,000$
Prakash’s Capital A/c $\displaystyle 4,00,000$
$\displaystyle 36,60,000$ $\displaystyle 36,60,000$
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