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Accountancy · 2023 · 6 marks
Dissolution of Partnership FirmAccounting Treatment on Dissolution of a Partnership Firm6 markslong answer
CBSE 2023 · Region 5 · Set 2 · Q25
Pass necessary Journal Entries for the following transactions on the dissolution of a partnership firm of Mita and Sonu on 31st March, $\displaystyle 2022$ after the various assets other than cash and third party liabilities have been transferred to the Realisation Account. (a) Creditors of ₹ $\displaystyle 90,000$ took over Land and Building of ₹ $\displaystyle 2,00,000$ in full settlement of their claim. (b) Sonu took over debtors amounting to ₹ $\displaystyle 50,000$ at ₹ $\displaystyle 40$,000. (C) Realisation expenses ₹ $\displaystyle 1800$ were paid by Sonu. (d) A machine which was not recorded in the books was taken over by Mita at ₹ $\displaystyle 11,000$ while its expected market value was ₹ $\displaystyle 15$,000. (G) Sonu agreed to pay off his wife's loan of ₹ $\displaystyle 20$,000. (f) Profit on dissolution amounted to ₹ $\displaystyle 50$,000.
Marking-scheme solution
Books of Mita and Sonu
JOURNAL
Date Particulars L.F. Dr. Cr.
(`) (`)
Amount Amount
$\displaystyle 2022$ (a) No Entry - -
March
$\displaystyle 31$
(b) Sonu’s Capital A/c Dr. $\displaystyle 40,000$
” To Realisation A/c $\displaystyle 40,000$
(debtors taken over by Sonu at `$\displaystyle 40,000$)
(c)
RealisationA/c Dr. $\displaystyle 1,800$
” To Sonu’s Capital A/c $\displaystyle 1,800$
(realization expenses `$\displaystyle 1,800$ paid by
Sonu)
(d)
Mita’s Capital A/c Dr. $\displaystyle 11,000$
” To Realisation A/c $\displaystyle 11,000$
(machine taken over by Mita at
`$\displaystyle 11,000$)
(e)
Realisation A/c Dr. $\displaystyle 20,000$
” To Sonu’s Capital A/c $\displaystyle 20,000$
(Mrs Sonu’s loan `$\displaystyle 20,000$ taken over by
Sonu)
” (f) Realisation A/c Dr. $\displaystyle 50,000$
To Mita’s Capital A/c $\displaystyle 25,000$
To Sonu’s Capital A/c $\displaystyle 25,000$
(profit on dissolution transferred to
partners’ capital accounts in old ratio)
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CBSE Class 12 Accountancy past-paper question from the 2023board exam, with the answer as CBSE’s own marking scheme gives it. Where our answers come from.