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Accountancy · 2025 · 6 marks
Dissolution of Partnership FirmAccounting Treatment on Dissolution of a Partnership Firm6 markslong answer
CBSE 2025 · Region 1 · Set 2 · Q24
Pass necessary journal entries for the following transactions on the dissolution of the partnership firm of Mansha and Rajiv after various assets (other than cash) and external liabilities have been transferred to Realisation Account : (i) Mansha's loan of ₹ $\displaystyle 18,000$ was settled by giving her an unrecorded furniture of ₹ $\displaystyle 20$,000. (ii) Machinery of the book value of ₹ $\displaystyle 80,000$ was sold at a loss of $\displaystyle 10$%. (iii) A creditor of ₹ $\displaystyle 40,000$ accepted cash ₹ $\displaystyle 21,000$ and stock of the book value of $\displaystyle 25,000$ in full settlement of his claim. (iv) Bank lean of ₹ $\displaystyle 1,00,000$ was paid along with interest of ₹ $\displaystyle 10$,000. (V) Investments of the face value of ₹ $\displaystyle 52,000$ were sold in the open market for ₹ $\displaystyle 63,000$ for which a commission of ₹ $\displaystyle 2,000$ was paid to the broker. (vi) Profit and Loss Account balance of ₹ $\displaystyle 30,000$ appeared on the asset side of the balance sheet.
Marking-scheme solution
Books of Mansha and Rajiv
Journal
Date Particulars L.F. Dr. Cr.
Amount Amount
(₹) (₹)
(i) Mansha’s Loan A/c Dr. $\displaystyle 18,000$
To Realisation A/c $\displaystyle 18,000$
(Mansha’s loan settled by giving her unrecorded furniture)
(ii)
Cash/ Bank A/c Dr. $\displaystyle 72,000$
To Realisation A/c $\displaystyle 72,000$
(Machinery sold at a loss of $\displaystyle 10$%)
(iii)
Realisation A/c Dr. $\displaystyle 21,000$
To Cash A/c $\displaystyle 21,000$
(Creditors accepted cash and stock in full settlement)
$\displaystyle 9$
(iv) Realisation A/c Dr. $\displaystyle 1,10,000$
To Cash/ Bank A/c $\displaystyle 1,10,000$
(Bank loan paid along with interest)
(v)
Cash/ Bank A/c Dr. $\displaystyle 61,000$
To Realisation A/c $\displaystyle 61,000$
(Investments sold and commission paid to the broker)
(vi)
Mansha’s Capital A/c Dr. $\displaystyle 15,000$
Rajiv’s Capital A/c Dr. $\displaystyle 15,000$
To Profit and Loss A/c $\displaystyle 30,000$
(Debit balance of Profit and Loss account debited to the
partners’ capital accounts)
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CBSE Class 12 Accountancy past-paper question from the 2025board exam, with the answer as CBSE’s own marking scheme gives it. Where our answers come from.