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Accountancy · 2024 · 6 marks
Dissolution of Partnership FirmAccounting Treatment on Dissolution of a Partnership Firm6 markslong answer
CBSE 2024 · Region 5 · Set 1 · Q25
Pass the necessary journal entries for the following transactions on dissolution of the firm of Avyan and Shruti after various assets (other than cash) and third party liabilities have been transferred to Realisation Account $\displaystyle 1$ (i) Sundry creditors amounting to ₹ $\displaystyle 40,000$ were settled at a discount of $\displaystyle 10$% . (ii) An unrecorded computer of ₹ $\displaystyle 50,000$ was taken over by Shruti. (iii) Creditors of ₹ $\displaystyle 5,000$ agreed to take over debtors of ₹ $\displaystyle 8,000$ in full settlement of their claim. (iv) The firm had a debit balance of ₹ $\displaystyle 42,000$ in the Profit and Loss Account on the date of dissolution. (v) There was an old furniture with the firm which had been written off completely from the books. This was sold for ₹ $\displaystyle 9$,000. (vi) Realisation expenses amounting to ₹ $\displaystyle 11,000$ were paid by Shruti.
Marking-scheme solution
Books of Avyan and Shruti
Journal
Date Particulars L.F Dr. Amount Cr. Amount
₹ ₹
(i) Realisation A/c Dr. $\displaystyle 36,000$
To Cash/Bank A/c $\displaystyle 36,000$
(Creditors settled at a discount of $\displaystyle 10$%)
(ii)
Shruti’s Capital A/c Dr. $\displaystyle 50,000$
To Realisation A/c $\displaystyle 50,000$
(Unrecorded computer taken over by Shruti)
(iii)
No entry
(iv)
Avyan’s Capital A/c Dr. $\displaystyle 21,000$
Shruti’s Capital A/c Dr. $\displaystyle 21,000$
To Profit and Loss A/c $\displaystyle 42,000$
(Debit balance of Profit and Loss Account
distributed among the partners)
(v)
Bank/ Cash A/c Dr. $\displaystyle 9,000$
To Realisation A/c $\displaystyle 9,000$
(Old furniture which had been written off,
sold)
(vi)
Realisation A/c Dr. $\displaystyle 11,000$
To Shruti’s Capital A/c $\displaystyle 11,000$
(Expenses of realisation paid by Shruti)
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CBSE Class 12 Accountancy past-paper question from the 2024board exam, with the answer as CBSE’s own marking scheme gives it. Where our answers come from.