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Accountancy · 2024 · 6 marks
Dissolution of Partnership FirmAccounting Treatment on Dissolution of a Partnership Firm6 markslong answer
CBSE 2024 · Region 4 · Set 2 · Q25
Pass the necessary journal entries for the following transactions on the dissolution of the firm of Sud ha and Shiva after the various assets (other than cash and bank) and third party liabilities have been transferred to realisation account : (i) Sud ha agreed to pay off her husband's loan ₹ $\displaystyle 19$,000. (ii) A debtor, whose debt of ₹ $\displaystyle 9,300$ was written off as bad debts in the books, paid ₹ $\displaystyle 7,500$ in full settlement. (iii) Shiva took over all investments at ₹ $\displaystyle 13$,300. (iv) An unrecorded creditor of ₹ $\displaystyle 20,000$ was paid by Sud ha at a discount of $\displaystyle 10$% . (V) The firm had $\displaystyle 300$ shares in Veligare Ltd. acquired at a cost of ₹ $\displaystyle 3,000$ and had been written off completely from the books. These shares were valued at ₹ $\displaystyle 5$ each and divided among the partners in their profit sharing ratio. (vi) Realisation expenses ₹ $\displaystyle 3,400$ were paid by Sud ha for which she was allowed a remuneration of ₹ $\displaystyle 3$,000.
Marking-scheme solution
Books of Sudha & Shiva
Journal
L. Debit Credit
Date Par'culars F Amount Amount
(₹) (₹)
$\displaystyle 19,000$
(i)
Realisa-on A/c Dr
$\displaystyle 19,000$
To Sudha’s Capital A/C
( A Liability taken over by Sudha, a
partner)
(ii)
Cash /Bank A/c Dr
$\displaystyle 7,500$
To Realisa-on A/c
$\displaystyle 7,500$
(Bad Debts recovered)
(iii)
Shiva’s Capital A/c Dr $\displaystyle 13,300$
To Realisa-on A/c $\displaystyle 13,300$
(Investment taken over by a partner,Shiva)
(iv)
Realisa-on A/c Dr
$\displaystyle 18,000$
To Sudha’s Capital A/c
$\displaystyle 18,000$
(A Liability taken over by Sudha, a partner)
(v)
Sudha’s Capital A/c Dr
$\displaystyle 750$
Shiva’s Capital A/c Dr
$\displaystyle 750$
To Realisa-on A/c
$\displaystyle 1,500$
(Shares acquired by partners in their profit
sharing ra-o )
(vi)
Realisa-on A/c Dr
$\displaystyle 3,000$
To Sudha’s Capital A/c
$\displaystyle 3,000$
(Remunera-on allowed to Sudha, a partner
for bearing realisa-on expenses)
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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.