CBSE 2022 · Region 3 · Set 3 · Q9

T, U and V were partners in a firm sharing profits and losses in the ratio of $\displaystyle 2$ : $\displaystyle 1$ : 2. Their firm was incurring huge losses thus it had to be closed. After transferring assets (other than cash in hand and bank) and third party liabilities to realization account the following transactions took place : (i) T took away $\displaystyle 50$% of the stock at book value less $\displaystyle 10$% for ₹ $\displaystyle 90,000$, and the remaining stock was sold for ₹ $\displaystyle 40$,000. (ii) Creditors of ₹ $\displaystyle 78,000$ took over machinery of ₹ $\displaystyle 80,000$ in full settlement of their claim. (iii) ₹ $\displaystyle 5,000$ debtors previously written off were recovered. (iv) Mrs. V's loan of ₹ $\displaystyle 72,000$ was paid by the firm. (v) Loss on dissolution was ₹ $\displaystyle 80$,000. Pass necessary journal entries for the above transactions in the books of T, U and V.

OR

D, E and F were partners in a firm sharing profits in the ratio of $\displaystyle 5$ : $\displaystyle 2$ : 3. On $\displaystyle 31.3.2022$ their balance sheet was as follows : Balance Sheet of D, E and F as on $\displaystyle 31.3.2022$ Amount Amount Liabilities Assets $\displaystyle 2$ z Creditors $\displaystyle 53,000$ Cash $\displaystyle 16,000$ Bills Payable $\displaystyle 62,000$ Bank $\displaystyle 17,000$ General Reserve $\displaystyle 2,00,000$ Stock $\displaystyle 18,000$ Capitals : Debtors $\displaystyle 1,99,000$ D $\displaystyle 7,00,000$ Investments $\displaystyle 1,15,000$ E $\displaystyle 5,00,000$ Machinery $\displaystyle 7,50,000$ F $\displaystyle 6,00,000$ $\displaystyle 18,00,000$ Land and Building $\displaystyle 10,00,000$ $\displaystyle 21,15,000$ $\displaystyle 21,15,000$ On the above date D retired from the firm and the following was agreed upon : (i) Goodwill of the firm was valued at ₹ $\displaystyle 1,00$,000. D's share of goodwill was adjusted through the capital accounts of remaining partners. (ii) Investments were to be brought to their market value which was ₹ $\displaystyle 85$,000. (iii) Machinery was to be depreciated to ₹ $\displaystyle 7,00$,000. (iv) Land and Building was to be appreciated to ₹ $\displaystyle 12,00$,000. (v) The balance in D's capital account was transferred to his loan account. Prepare Revaluation Account and D's Capital Account on his retirement.