Commerce Exam > Commerce Questions > mohan, nagaraj and prakash are partners shari...
Start Learning for Free
mohan, nagaraj and prakash are partners sharing profit and losses in the ratio of 4:3:2. their balance sheet as on 31.03.2014 was as follows : balanced sheet as on 31.03.2014liabilities ₹ ₹ assets ₹ ₹creditors 25000 cash 9000bills payab 17000-le prakash's 10000-loanreserve 18000- fund capitals:mohan 30000nagaraj 20000prakash 10000
?
Most Upvoted Answer
mohan, nagaraj and prakash are partners sharing profit and losses in t...
**Dissolution of Partnership:**
Dissolution of partnership refers to the process of ending a partnership business. It involves the settlement of all the assets and liabilities of the firm, the adjustment of the capital accounts of the partners, and the distribution of the remaining assets among the partners.
**Methods of Dissolution:**
Partnership can be dissolved by various methods, such as:
1. Dissolution by Agreement: When partners mutually agree to dissolve the partnership, it is known as dissolution by agreement.
2. Dissolution by Notice: A partnership can be dissolved if one partner gives a notice to the other partners regarding the dissolution of the partnership as per the terms mentioned in the partnership agreement.
3. Dissolution by Expulsion: If a partner is expelled from the partnership due to misconduct or any other reason, it leads to the dissolution of the partnership.
4. Dissolution by Court Order: A partnership can be dissolved by the order of the court if any partner becomes of unsound mind, permanently incapable of performing duties, or if the partnership becomes unlawful.
**Settlement of Accounts:**
After the decision to dissolve the partnership, the following steps are taken for the settlement of accounts:
1. Preparation of Realization Account: A realization account is prepared to record the sale of assets and payment of liabilities. It helps in determining the profit or loss on the realization of assets and settlement of liabilities.
2. Distribution of Realization Account: The balance in the realization account is transferred to the partners' capital accounts in their profit-sharing ratio.
3. Adjustment of Capitals: After the distribution of the realization account, the partners' capital accounts are adjusted to reflect their new capital balances. Any surplus or deficit is transferred to the partners' current accounts.
4. Distribution of Cash/Bank Balance: The remaining cash or bank balance is distributed among the partners in their profit-sharing ratio.
5. Settlement of Loan Accounts: Any loans taken by the partners are settled by using the remaining cash or bank balance.
6. Settlement of Reserves and Profit/Loss: Any reserves or accumulated profits are distributed among the partners in their profit-sharing ratio. If there is any loss, it is borne by the partners in their profit-sharing ratio.
**In the given case:**
Mohan, Nagaraj, and Prakash are partners sharing profit and losses in the ratio of 4:3:2. The balance sheet as on 31.03.2014 is as follows:
Liabilities:
- Creditors: ₹25,000
- Bills Payable: ₹17,000
- Reserve Fund: ₹18,000
Assets:
- Cash: ₹9,000
- Prakash's Loan: ₹10,000
Partners' Capital:
- Mohan: ₹30,000
- Nagaraj: ₹20,000
- Prakash: ₹10,000
**Settlement of Accounts:**
1. Preparation of Realization Account:
Realization Account
Particulars Amount (₹) Particulars Amount (₹)
Creditors 25,000 Cash 9,000
Bills Payable 17,000 Prakash's Loan 10,000
Reserve Fund 18,000 Capital:
Mohan 40,000 Nagaraj 30,000
Prakash 20,000
(To record the sale of assets and
Dissolution of partnership refers to the process of ending a partnership business. It involves the settlement of all the assets and liabilities of the firm, the adjustment of the capital accounts of the partners, and the distribution of the remaining assets among the partners.
**Methods of Dissolution:**
Partnership can be dissolved by various methods, such as:
1. Dissolution by Agreement: When partners mutually agree to dissolve the partnership, it is known as dissolution by agreement.
2. Dissolution by Notice: A partnership can be dissolved if one partner gives a notice to the other partners regarding the dissolution of the partnership as per the terms mentioned in the partnership agreement.
3. Dissolution by Expulsion: If a partner is expelled from the partnership due to misconduct or any other reason, it leads to the dissolution of the partnership.
4. Dissolution by Court Order: A partnership can be dissolved by the order of the court if any partner becomes of unsound mind, permanently incapable of performing duties, or if the partnership becomes unlawful.
**Settlement of Accounts:**
After the decision to dissolve the partnership, the following steps are taken for the settlement of accounts:
1. Preparation of Realization Account: A realization account is prepared to record the sale of assets and payment of liabilities. It helps in determining the profit or loss on the realization of assets and settlement of liabilities.
2. Distribution of Realization Account: The balance in the realization account is transferred to the partners' capital accounts in their profit-sharing ratio.
3. Adjustment of Capitals: After the distribution of the realization account, the partners' capital accounts are adjusted to reflect their new capital balances. Any surplus or deficit is transferred to the partners' current accounts.
4. Distribution of Cash/Bank Balance: The remaining cash or bank balance is distributed among the partners in their profit-sharing ratio.
5. Settlement of Loan Accounts: Any loans taken by the partners are settled by using the remaining cash or bank balance.
6. Settlement of Reserves and Profit/Loss: Any reserves or accumulated profits are distributed among the partners in their profit-sharing ratio. If there is any loss, it is borne by the partners in their profit-sharing ratio.
**In the given case:**
Mohan, Nagaraj, and Prakash are partners sharing profit and losses in the ratio of 4:3:2. The balance sheet as on 31.03.2014 is as follows:
Liabilities:
- Creditors: ₹25,000
- Bills Payable: ₹17,000
- Reserve Fund: ₹18,000
Assets:
- Cash: ₹9,000
- Prakash's Loan: ₹10,000
Partners' Capital:
- Mohan: ₹30,000
- Nagaraj: ₹20,000
- Prakash: ₹10,000
**Settlement of Accounts:**
1. Preparation of Realization Account:
Realization Account
Particulars Amount (₹) Particulars Amount (₹)
Creditors 25,000 Cash 9,000
Bills Payable 17,000 Prakash's Loan 10,000
Reserve Fund 18,000 Capital:
Mohan 40,000 Nagaraj 30,000
Prakash 20,000
(To record the sale of assets and
Community Answer
mohan, nagaraj and prakash are partners sharing profit and losses in t...
I need answer
Attention Commerce Students!
To make sure you are not studying endlessly, EduRev has designed Commerce study material, with Structured Courses, Videos, & Test Series. Plus get personalized analysis, doubt solving and improvement plans to achieve a great score in Commerce.
|
Explore Courses for Commerce exam
|
|
Similar Commerce Doubts
Top Courses for CommerceView all
mohan, nagaraj and prakash are partners sharing profit and losses in the ratio of 4:3:2. their balance sheet as on 31.03.2014 was as follows : balanced sheet as on 31.03.2014liabilities ₹ ₹ assets ₹ ₹creditors 25000 cash 9000bills payab 17000-le prakash's 10000-loanreserve 18000- fund capitals:mohan 30000nagaraj 20000prakash 10000 Related: NCERT Solution (Part - 1) - Dissolution of Partnership?
Question Description
mohan, nagaraj and prakash are partners sharing profit and losses in the ratio of 4:3:2. their balance sheet as on 31.03.2014 was as follows : balanced sheet as on 31.03.2014liabilities ₹ ₹ assets ₹ ₹creditors 25000 cash 9000bills payab 17000-le prakash's 10000-loanreserve 18000- fund capitals:mohan 30000nagaraj 20000prakash 10000 Related: NCERT Solution (Part - 1) - Dissolution of Partnership? for Commerce 2024 is part of Commerce preparation. The Question and answers have been prepared according to the Commerce exam syllabus. Information about mohan, nagaraj and prakash are partners sharing profit and losses in the ratio of 4:3:2. their balance sheet as on 31.03.2014 was as follows : balanced sheet as on 31.03.2014liabilities ₹ ₹ assets ₹ ₹creditors 25000 cash 9000bills payab 17000-le prakash's 10000-loanreserve 18000- fund capitals:mohan 30000nagaraj 20000prakash 10000 Related: NCERT Solution (Part - 1) - Dissolution of Partnership? covers all topics & solutions for Commerce 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for mohan, nagaraj and prakash are partners sharing profit and losses in the ratio of 4:3:2. their balance sheet as on 31.03.2014 was as follows : balanced sheet as on 31.03.2014liabilities ₹ ₹ assets ₹ ₹creditors 25000 cash 9000bills payab 17000-le prakash's 10000-loanreserve 18000- fund capitals:mohan 30000nagaraj 20000prakash 10000 Related: NCERT Solution (Part - 1) - Dissolution of Partnership?.
mohan, nagaraj and prakash are partners sharing profit and losses in the ratio of 4:3:2. their balance sheet as on 31.03.2014 was as follows : balanced sheet as on 31.03.2014liabilities ₹ ₹ assets ₹ ₹creditors 25000 cash 9000bills payab 17000-le prakash's 10000-loanreserve 18000- fund capitals:mohan 30000nagaraj 20000prakash 10000 Related: NCERT Solution (Part - 1) - Dissolution of Partnership? for Commerce 2024 is part of Commerce preparation. The Question and answers have been prepared according to the Commerce exam syllabus. Information about mohan, nagaraj and prakash are partners sharing profit and losses in the ratio of 4:3:2. their balance sheet as on 31.03.2014 was as follows : balanced sheet as on 31.03.2014liabilities ₹ ₹ assets ₹ ₹creditors 25000 cash 9000bills payab 17000-le prakash's 10000-loanreserve 18000- fund capitals:mohan 30000nagaraj 20000prakash 10000 Related: NCERT Solution (Part - 1) - Dissolution of Partnership? covers all topics & solutions for Commerce 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for mohan, nagaraj and prakash are partners sharing profit and losses in the ratio of 4:3:2. their balance sheet as on 31.03.2014 was as follows : balanced sheet as on 31.03.2014liabilities ₹ ₹ assets ₹ ₹creditors 25000 cash 9000bills payab 17000-le prakash's 10000-loanreserve 18000- fund capitals:mohan 30000nagaraj 20000prakash 10000 Related: NCERT Solution (Part - 1) - Dissolution of Partnership?.
Solutions for mohan, nagaraj and prakash are partners sharing profit and losses in the ratio of 4:3:2. their balance sheet as on 31.03.2014 was as follows : balanced sheet as on 31.03.2014liabilities ₹ ₹ assets ₹ ₹creditors 25000 cash 9000bills payab 17000-le prakash's 10000-loanreserve 18000- fund capitals:mohan 30000nagaraj 20000prakash 10000 Related: NCERT Solution (Part - 1) - Dissolution of Partnership? in English & in Hindi are available as part of our courses for Commerce.
Download more important topics, notes, lectures and mock test series for Commerce Exam by signing up for free.
Here you can find the meaning of mohan, nagaraj and prakash are partners sharing profit and losses in the ratio of 4:3:2. their balance sheet as on 31.03.2014 was as follows : balanced sheet as on 31.03.2014liabilities ₹ ₹ assets ₹ ₹creditors 25000 cash 9000bills payab 17000-le prakash's 10000-loanreserve 18000- fund capitals:mohan 30000nagaraj 20000prakash 10000 Related: NCERT Solution (Part - 1) - Dissolution of Partnership? defined & explained in the simplest way possible. Besides giving the explanation of
mohan, nagaraj and prakash are partners sharing profit and losses in the ratio of 4:3:2. their balance sheet as on 31.03.2014 was as follows : balanced sheet as on 31.03.2014liabilities ₹ ₹ assets ₹ ₹creditors 25000 cash 9000bills payab 17000-le prakash's 10000-loanreserve 18000- fund capitals:mohan 30000nagaraj 20000prakash 10000 Related: NCERT Solution (Part - 1) - Dissolution of Partnership?, a detailed solution for mohan, nagaraj and prakash are partners sharing profit and losses in the ratio of 4:3:2. their balance sheet as on 31.03.2014 was as follows : balanced sheet as on 31.03.2014liabilities ₹ ₹ assets ₹ ₹creditors 25000 cash 9000bills payab 17000-le prakash's 10000-loanreserve 18000- fund capitals:mohan 30000nagaraj 20000prakash 10000 Related: NCERT Solution (Part - 1) - Dissolution of Partnership? has been provided alongside types of mohan, nagaraj and prakash are partners sharing profit and losses in the ratio of 4:3:2. their balance sheet as on 31.03.2014 was as follows : balanced sheet as on 31.03.2014liabilities ₹ ₹ assets ₹ ₹creditors 25000 cash 9000bills payab 17000-le prakash's 10000-loanreserve 18000- fund capitals:mohan 30000nagaraj 20000prakash 10000 Related: NCERT Solution (Part - 1) - Dissolution of Partnership? theory, EduRev gives you an
ample number of questions to practice mohan, nagaraj and prakash are partners sharing profit and losses in the ratio of 4:3:2. their balance sheet as on 31.03.2014 was as follows : balanced sheet as on 31.03.2014liabilities ₹ ₹ assets ₹ ₹creditors 25000 cash 9000bills payab 17000-le prakash's 10000-loanreserve 18000- fund capitals:mohan 30000nagaraj 20000prakash 10000 Related: NCERT Solution (Part - 1) - Dissolution of Partnership? tests, examples and also practice Commerce tests.
|
|
Explore Courses for Commerce exam
|
|
Suggested Free Tests
Signup for Free!
Signup to see your scores go up within 7 days! Learn & Practice with 1000+ FREE Notes, Videos & Tests.
|
© EduRev
|
Education Revolution
|
Follow Us
|
Signup to see your scores
go up within 7 days!
Access 1000+ FREE Docs, Videos and Tests
Takes less than 10 seconds to signup