CBSE 2025 · Region 6 · Set 3 · Q25

Tushar, Mehta and Ghosh were partners in a firm sharing profits and losses in the ratio of $\displaystyle 1$ : $\displaystyle 2$ : 4. On 31st March, $\displaystyle 2024$ their firm was dissolved. After transferring sundry assets (other than cash in hand and cash at bank) and external liabilities to realisation account, the following transactions took place : (i) There was a debit balance of ₹ $\displaystyle 77,000$ in the profit and loss account, which was transferred to the capital accounts of the partners. (ii) The firm had investments of ₹ $\displaystyle 4,00,000$ whose market price was ₹ $\displaystyle 4,20$,000. The investments were taken over by the partners in their profit sharing ratio at market price. (iii) The book value of the debtors was ₹ $\displaystyle 8,00,000$ and the provision for bad debts was ₹ $\displaystyle 40$,000. Debtors were realised at $\displaystyle 90$% of the book value and a debtor of $\displaystyle 5,000$ which had been previously written off as bad debt paid the full amount. (iv) Ram Lal, a creditor of ₹ $\displaystyle 2,00,000$ took over furniture of book value of ₹ $\displaystyle 2,50,000$ in full settlement of his claim. The remaining creditors allowed a discount of $\displaystyle 10$% on their claim of $\displaystyle 2,20$,000. (v) Expenses on realisation amounted to ₹ $\displaystyle 50,000$ which were paid by the firm. (vi) Gain on realisation amounted to $\displaystyle 42$,000. Pass necessary journal entries for the above transactions in the books of the firm.