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Accountancy · 2026 · 6 marks
Dissolution of Partnership FirmAccounting Treatment on Dissolution of a Partnership Firm6 markslong answer
CBSE 2026 · Region 1 · Set 1 · Q23
Ravneet and Manmeet were partners in a firm sharing profits and losses in the ratio of 7: 3. On 31st March, 2025, their Balance Sheet was as follows:…
Ravneet and Manmeet were partners in a firm sharing profits and losses in the ratio of $\displaystyle 7$ : 3. On 31st March, $\displaystyle 2025$, their Balance Sheet was as follows :
Balance Sheet of Ravneet and Manmeet as on 31st March, $\displaystyle 2025$
On the above date, the firm was dissolved. The plant and machinery was sold at ₹ $\displaystyle 4,87,000$ and stock at $\displaystyle 20$% less than the book value. Debtors realised ₹ $\displaystyle 1,40$,000. Ravneet agreed to bear all realisation expenses for which he was allowed a commission of ₹ $\displaystyle 9$,000. Actual realisation expenses amounted to ₹ $\displaystyle 7$,500. Prepare Realisation Account and Partners' Capital Accounts.
| Liabilities | Amount (₹) | Assets | Amount (₹) |
| Creditors | $\displaystyle 4,50,000$ | Cash at Bank | $\displaystyle 2,50,000$ |
| Capitals : | Stock | $\displaystyle 2,50,000$ | |
| Ravneet $\displaystyle 5,00,000$ | Debtors | $\displaystyle 2,00,000$ | |
| Manmeet $\displaystyle 3,00,000$ | $\displaystyle 8,00,000$ | Plant & Machinery | $\displaystyle 5,50,000$ |
| $\displaystyle 12,50,000$ | $\displaystyle 12,50,000$ |
Marking-scheme solution
Books of Ravneet and Manmeet
Dr. Realisation Account Cr.
Particulars Amount Particulars Amount
(₹) (₹)
To Sundry Assets By Sundry Liabilities
Stock $\displaystyle 2,50,000$ Creditors $\displaystyle 4,50,000$
Debtors $\displaystyle 2,00,000$
Plant and Machinery5,$\displaystyle 50,000$ $\displaystyle 10,00,000$ By Cash/ Bank A/c
Plant and Machinery. $\displaystyle 4,87,000$
Stock $\displaystyle 2,00,000$
$\displaystyle 8,27,000$
To Cash/ Bank A/c Debtors $\displaystyle 1,40,000$
Creditors $\displaystyle 4,50,000$
By Loss transferred to Partners’
Capital A/c’s
Ravneet $\displaystyle 1,27,400$
To Ravneet’s Capital A/c
Commission $\displaystyle 9,000$ Manmeet $\displaystyle 54,600$ $\displaystyle 1,82,000$
$\displaystyle 14,59,000$ $\displaystyle 14,59,000$
Dr. Partners’ Capital Accounts Cr.
Particulars Ravneet Manmeet Particulars Ravneet Manmeet
(₹) (₹) (₹) (₹)
To RealisationA/c $\displaystyle 1,27,400$ $\displaystyle 54,600$ By Balance b/d $\displaystyle 5,00,000$ $\displaystyle 3,00,000$
(Loss)
To Cash/ Bank A/c $\displaystyle 3,81,600$ $\displaystyle 2,45,400$ By Realisation A/c $\displaystyle 9,000$ -
(Commission)
$\displaystyle 5,09,000$ $\displaystyle 3,00,000$ $\displaystyle 5,09,000$ $\displaystyle 3,00,000$
.
Alternatively,
Dr. Partners’ Capital Accounts Cr.
Particulars Ravneet Manmeet Particulars Ravneet Manmeet
(₹) (₹) (₹) (₹)
To RealisationA/c $\displaystyle 1,27,400$ $\displaystyle 54,600$ By Balance b/d $\displaystyle 5,00,000$ $\displaystyle 3,00,000$
(Loss)
To Cash/ Bank A/c $\displaystyle 7,500$ - By Realisation A/c $\displaystyle 9,000$ -
(Commission)
To Cash/ Bank A/c $\displaystyle 3,74,100$ $\displaystyle 2,45,400$
$\displaystyle 5,09,000$ $\displaystyle 3,00,000$ $\displaystyle 5,09,000$ $\displaystyle 3,00,000$All Dissolution of Partnership Firm questions2026 question paperPractice Dissolution of Partnership Firm →
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CBSE Class 12 Accountancy past-paper question from the 2026 board exam, with the answer as CBSE’s own marking scheme gives it. Where our answers come from.