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Accountancy · 2025 · 6 marks
Dissolution of Partnership FirmAccounting Treatment on Dissolution of a Partnership Firm6 markslong answer
CBSE 2025 · Region 2 · Set 3 · Q23
Pass necessary journal entries for the following transactions on dissolution of the partnership firm of Preeti, Varsha and Kamala after various assets (other than cash) and third party liabilities have been transferred to Realisation Account : (i) Preeti took over the debtors of book value of ₹ $\displaystyle 90,000$ at a discount of $\displaystyle 20$%. (ii) Kamala took over her husband's loan of ₹ $\displaystyle 4,00$,000. (iii) There were $\displaystyle 100$ shares of ₹ $\displaystyle 10$ each in Star Ltd. acquired at a cost of ₹ $\displaystyle 2,00,000$ which had been written off completely from the books. These shares were valued at ₹ $\displaystyle 2,400$ each and divided among the partners in their profit sharing ratio. (iv) Sundry creditors amounting to ₹ $\displaystyle 5,00,000$ were settled at a discount of $\displaystyle 10$%. (V) Land and Building of the book value of ₹ $\displaystyle 40,00,000$ was sold for ₹ $\displaystyle 60,00,000$ through a broker who charged $\displaystyle 5$% commission. (vi) Varsha paid the dissolution expenses of ₹ $\displaystyle 45,000$ on behalf of the firm.
Marking-scheme solution
Books of Preeti, Varsha and Kamala
Journal
Date Particulars Dr. Cr.
L.F.
Amount Amount
$\displaystyle 9$
(₹) (₹)
(i) Preeti’s Capital A/c Dr. $\displaystyle 72,000$
To Realisation A/c $\displaystyle 72,000$
(Debtors taken over by Preeti at a discount of $\displaystyle 20$%)
(ii)
Realisation A/c Dr. $\displaystyle 4,00,000$
To Kamala’s Capital A/c $\displaystyle 4,00,000$
(Kamala took over her husband’s loan)
(iii)
Preeti’s Capital A/c Dr. $\displaystyle 80,000$
Varsha’s Capital A/c Dr. $\displaystyle 80,000$
Kamala ’s Capital A/c Dr. $\displaystyle 80,000$
To Realisation A/c $\displaystyle 2,40,000$
(Shares of Star Ltd. acquired by Preeti, Varsha and
Kamala in their profit sharing ratio)
(iv)
Realisation A/c Dr. $\displaystyle 4,50,000$
To Bank A/c/ Cash A/c $\displaystyle 4,50,000$
(Creditors settled at a discount of $\displaystyle 10$%)
(v)
Bank/ Cash A/c Dr. $\displaystyle 57,00,000$
To Realisation A/c $\displaystyle 57,00,000$
(Land and building sold and commission paid to the
broker)
(vi)
Realisation A/c Dr. $\displaystyle 45,000$
To Varsha’s Capital A/c $\displaystyle 45,000$
(Varsha paid dissolution expenses on behalf of the firm)
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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.