✓ Board-verified
Accountancy · 2025 · 6 marks
Dissolution of Partnership FirmAccounting Treatment on Dissolution of a Partnership Firm6 markslong answer
CBSE 2025 · Region 4 · Set 2 · Q23
Manav and Namit were partners in a firm sharing profits and losses in the ratio of 3: 2. Their Balance Sheet as at 31st March, 2024 was as follows:…
Manav and Namit were partners in a firm sharing profits and losses in the ratio of $\displaystyle 3$ : 2. Their Balance Sheet as at 31st March, $\displaystyle 2024$ was as follows :
Balance Sheet of Manav and Namit as at 31st March, $\displaystyle 2024$
The firm was dissolved on the above date and the following transactions took place : (i) Stock was given to creditors in full settlement of their account. (ii) Investments were taken over by Manav at $\displaystyle 120$% of book value. (iii) Bad debts amounted to ₹ $\displaystyle 2,00$,000. (iv) Machinery was realised at $\displaystyle 50$% discount. (v) Realisation expenses amounted to ₹ $\displaystyle 1,00,000$ which were paid by Namit. Prepare Realisation Account.
| Liabilities | Amount (₹) | Assets | Amount (₹) |
| Capitals : | Machinery | $\displaystyle 8,00,000$ | |
| Manav $\displaystyle 4,00,000$ | Investments | $\displaystyle 5,00,000$ | |
| Namit $\displaystyle 6,00,000$ | $\displaystyle 10,00,000$ | Debtors | $\displaystyle 12,00,000$ |
| Bank Overdraft | $\displaystyle 9,00,000$ | Stock | $\displaystyle 3,00,000$ |
| Creditors | $\displaystyle 10,00,000$ | Cash in Hand | $\displaystyle 1,00,000$ |
| $\displaystyle 29,00,000$ | $\displaystyle 29,00,000$ |
Marking-scheme solution
Dr. Realisation Account Cr.
Particulars Amount Particulars Amount
(₹) (₹)
To Sundry Assets t/f: By Sundry Liabilities t/f:
Machinery $\displaystyle 8,00,000$ Bank Overdraft $\displaystyle 9,00,000$
Investments $\displaystyle 5,00,000$ Creditors $\displaystyle 10,00,000$ $\displaystyle 19,00,000$
Debtors $\displaystyle 12,00,000$
Stock $\displaystyle 3,00,000$ $\displaystyle 28,00,000$ By Manav’s Capital A/c $\displaystyle 6,00,000$
To Namit’s Capital A/c $\displaystyle 1,00,000$ (Investment)
(Realisation Expenses) By Bank A/c (Debtors) $\displaystyle 10,00,000$
To Bank A/c (Bank O/d) $\displaystyle 9,00,000$ By Bank A/c (Machinery) $\displaystyle 4,00,000$
To Profit transferred to
Partners’ Capital A/c
Manav $\displaystyle 60,000$
Namit $\displaystyle 40,000$ $\displaystyle 1,00,000$
$\displaystyle 39,00,000$ $\displaystyle 39,00,000$
All Dissolution of Partnership Firm questions2025 question paperPractice Dissolution of Partnership Firm →
More from Dissolution of Partnership Firm
- Pass necessary Journal Entries for the following transactions, on the dissolution of a partnership firm of Kavita and Suman on 31st March, 2022,…2023
- Distinguish between 'Dissolution of Partnership' and 'Dissolution of Partnership Firm' on the basis of: (i) Closure of books (ii) Termination of…2022
- Pass necessary journal entries for the following transactions on the dissolution of the partnership firm of Mansha and Rajiv after various assets…2025
- Pass the necessary journal entries for the following transactions on the dissolution of the firm of Abhay and Mansi after various assets (other than…2024
- Rishi, Manu and Komal were partners in a firm sharing profits and losses in the ratio of 3: 4: 5. On 31st March, 2024 their firm was dissolved. After…2025
- Pass the necessary journal entries for the following transactions on the dissolution of the partnership firm of Sami and Usha after various assets…2025
- Total assets of a partnership firm, which was dissolved were ₹ 30,00,000 and its total liabilities were ₹ 6,00,000. Assets were realised at 80% and…2023
- Pass necessary journal entries for the following transactions on the dissolution of a firm after various assets (other than cash) and outside…2023
CBSE Class 12 Accountancy past-paper question from the 2025 board exam, with the answer as CBSE’s own marking scheme gives it. Where our answers come from.