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Accountancy · 2025 · 6 marks
Dissolution of Partnership FirmAccounting Treatment on Dissolution of a Partnership Firm6 markslong answer
CBSE 2025 · Region 4 · Set 3 · Q23
Rishika and Shivika were partners in a firm sharing profits and losses in the ratio of 3: 2. Their Balance Sheet as at 31st March, 2024 stood as…
Rishika and Shivika were partners in a firm sharing profits and losses in the ratio of $\displaystyle 3$ : 2. Their Balance Sheet as at 31st March, $\displaystyle 2024$ stood as follows :
Balance Sheet of Rishika and Shivika as at 31st March, $\displaystyle 2024$
The firm was dissolved on the above date and the following transactions took place : (i) Equipments were given to creditors in full settlement of their account. (ii) Investments were sold at a profit of $\displaystyle 20$% on its book value. (iii) Full amount was collected from debtors. (iv) Stock was taken over by Rishika at $\displaystyle 50$% discount. (v) Actual expenses of realisation amounted to ₹ $\displaystyle 2,00,000$ which were paid by the firm. Prepare Realisation Account.
| Liabilities | Amount (₹) | Assets | Amount (₹) |
| Capitals : | Equipment | $\displaystyle 45,00,000$ | |
| Rishika $\displaystyle 30,00,000$ | Investments | $\displaystyle 5,00,000$ | |
| Shivika $\displaystyle 20,00,000$ | $\displaystyle 50,00,000$ | Debtors | $\displaystyle 35,00,000$ |
| Shivika's Husband's Loan | $\displaystyle 5,00,000$ | Stock | $\displaystyle 8,00,000$ |
| Creditors | $\displaystyle 40,00,000$ | Cash at Bank | $\displaystyle 2,00,000$ |
| $\displaystyle 95,00,000$ | $\displaystyle 95,00,000$ |
Marking-scheme solution
Dr. Realisation Account Cr.
Particulars Amount Particulars Amount
(₹) (₹)
To Sundry Assets t/f: By Sundry Liabilities t/f:
Equipment $\displaystyle 45,00,000$ Shivika’s Husband’s Loan
$\displaystyle 5,00,000$
Investments $\displaystyle 5,00,000$ Creditors $\displaystyle 40,00,000$ $\displaystyle 45,00,000$
Debtors $\displaystyle 35,00,000$
Stock $\displaystyle 8,00,000$ $\displaystyle 93,00,000$ By Bank A/c (Investment) $\displaystyle 6,00,000$
By Bank A/c (Debtors) $\displaystyle 35,00,000$
To Bank A/c $\displaystyle 2,00,000$ By Rishika’s Capital A/c $\displaystyle 4,00,000$
(Realisation Expenses) (Stock)
To Bank A/c $\displaystyle 5,00,000$ By Loss transferred to
(Shivika’s Husband’s Loan) Partners’ Capital A/c
Rishika $\displaystyle 6,00,000$
Shivika $\displaystyle 4,00,000$ $\displaystyle 10,00,000$
$\displaystyle 1,00,00,000$ $\displaystyle 1,00,00,000$
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