Commerce Exam  >  Commerce Notes  >  Accountancy Class 12  >  NCERT Solution - Dissolution of Partnership (Part - 3)

NCERT Solution - Dissolution of Partnership (Part - 3) | Accountancy Class 12 - Commerce PDF Download

Q15: Anup and Sumit are equal partners in a firm. They decided to dissolve the parntership on March 31, 2017. When the balance sheet is as under:NCERT Solution - Dissolution of Partnership (Part - 3) | Accountancy Class 12 - Commerce

The Assets were realised as follows:

NCERT Solution - Dissolution of Partnership (Part - 3) | Accountancy Class 12 - Commerce

The Creditors were paid Rs 25,500 in full settlement. Expenses of Realisation amount to Rs 2,500.
Prepare Realisation Account, Bank Account, Partners Capital Accounts to close the books of the firm.
Ans:NCERT Solution - Dissolution of Partnership (Part - 3) | Accountancy Class 12 - Commerce 

 

Note: As per the solution, Profit on Realisation is Rs 6,500; however as per the answer given in the book is Rs 46,500. If Loan is not transferred to the Realisation Account and paid directly from Loan Account, then the answer would match with that of the book.

 Q16: Ashu and Harish are partners sharing profit and losses as 3:2. They decided to dissolve the firm on March 31, 2017. Their balance sheet on the above date was:

NCERT Solution - Dissolution of Partnership (Part - 3) | Accountancy Class 12 - Commerce

Ashu is to take over the building at Rs 95,000 and Machinery and Furniture is take over by Harish at value of Rs 80,000. Ashu agreed to pay Creditor and Harish agreed to meet Bank overdraft. Stock and Investments are taken by both partner in profit sharing ratio. Debtors realised for Rs 46,000, expenses of Realisation amounted to Rs 3,000. Prepare necessary ledger account.
Ans:

NCERT Solution - Dissolution of Partnership (Part - 3) | Accountancy Class 12 - Commerce

Note: As per the solution, the Profit on Realisation is Rs 6,000; however, the answer mentioned in the book is Rs 14,000.

 Working Notes:

 

Ashu

Harish

Building

95,000

 

Machinery and Furniture

 

80,000

Stock (3:2)

12,000

8,000

Investment (3:2)

36,000

24,000

 

Rs 1,43,000

Rs 1,12,000

 

Q17:  Sanjay, Tarun and Vineet shared profit in the ratio of 3:2:1. On March 31, 2017 their balance sheet was as follows:

NCERT Solution - Dissolution of Partnership (Part - 3) | Accountancy Class 12 - Commerce

On this date the firm was dissolved. Sanjay was appointed to realise the assets.
Sanjay was to receive 6% commission on the sale of assets (except cash) and was to bear all expenses of realisation.
Sanjay realised the assets as follows : Plant Rs. 72,000, Debtors Rs. 54,000, Furniture Rs. 18,000, Stock 90% of the book value, Investments Rs. 76,000 and Bills receivable Rs.31,000. Expenses of realisation amounted to Rs.4,500.
Prepare Realisation Account, Capital Accounts and Cash Account

Ans:NCERT Solution - Dissolution of Partnership (Part - 3) | Accountancy Class 12 - Commerce


Q18: The following is the Balance Sheet of Gupta and Sharma as on March 31,2017:

NCERT Solution - Dissolution of Partnership (Part - 3) | Accountancy Class 12 - Commerce

The firm was dissolved on December 31, 2017 and asset realised and settlements of liabilities as follows:
(a) The Realisation of the assets were as follows:

 

Rs

Sundry Debtors

52,000

Stock

42,000

Bills receivable

16,000

Machinery

49,000

(b) Investment was taken over by Gupta at agreed value of Rs 36,000 and agreed to pay of Mrs. Gupta’s loan.
(c) The Sundry Creditors were paid off less 3% discount.
(d) The Realisation expenses incurred amounted to Rs 1,200.
Journalise the entries to be made on the dissolution and prepare Realisation Account, Bank Account and Partners Capital Accounts.

Ans:NCERT Solution - Dissolution of Partnership (Part - 3) | Accountancy Class 12 - Commerce

NCERT Solution - Dissolution of Partnership (Part - 3) | Accountancy Class 12 - CommerceNCERT Solution - Dissolution of Partnership (Part - 3) | Accountancy Class 12 - CommerceNCERT Solution - Dissolution of Partnership (Part - 3) | Accountancy Class 12 - Commerce

 Note: As per the solution, Loss on Realisation is Rs 36,560 and the total of Bank Account is Rs 1,71,500. However, the answers mentioned in the book are Rs 19,660 and Rs 1,88,500 respectively.

 
Q19: Ashok, Babu and Chetan are in partnership sharing profit in the proportion  of 1/2, 1/3, 1/6 respectively. They dissolve the partnership of the December 31, 2017, when the balance sheet of the firm as under:

NCERT Solution - Dissolution of Partnership (Part - 3) | Accountancy Class 12 - Commerce

The Machinery was taken over by Babu for Rs 45,000, Ashok took over the Investment for Rs 40,000 and Freehold property took over by Chetan at Rs 55,000. The remaining Assets realised as follows: Sundry Debtors Rs 56,500 and Stock Rs 36,500. Sundry Creditors were settled at discount of 7%. A Office computer, not shown in the books of Accounts realised Rs 9,000. Realisation expenses amounted to Rs 3,000.
Prepare Realisation Account, Partners Capital Account, Bank Account.
Ans: 

NCERT Solution - Dissolution of Partnership (Part - 3) | Accountancy Class 12 - CommerceNCERT Solution - Dissolution of Partnership (Part - 3) | Accountancy Class 12 - CommerceNCERT Solution - Dissolution of Partnership (Part - 3) | Accountancy Class 12 - CommerceNCERT Solution - Dissolution of Partnership (Part - 3) | Accountancy Class 12 - CommerceNCERT Solution - Dissolution of Partnership (Part - 3) | Accountancy Class 12 - Commerce

Note: As per the solution, profit on realisation is Rs 2,400. However, the answer provided in the book is Rs 1,200.


Q20: The following is the Balance sheet of Tanu and Manu, who shares profit and losses in the ratio of 5:3, On March 31, 2017:

NCERT Solution - Dissolution of Partnership (Part - 3) | Accountancy Class 12 - CommerceOn the above date the firm is dissolved and the following agreement was made: Tanu agree to pay the bank loan and took away the sundry debtors. Sundry creditors accepts stock and paid Rs 10,000 to the firm. Machinery is taken over by Manu for Rs 40,000 and agreed to pay of bills payable at a discount of 5%.. Motor car was taken over by Tanu for Rs 60,000. Investment realised Rs 76,000 and fixtures Rs 4,000. The expenses of dissolution amounted to Rs 2,200.

Prepare Realisation Account, Bank Account and Partners Capital Accounts.
Ans:

NCERT Solution - Dissolution of Partnership (Part - 3) | Accountancy Class 12 - CommerceNCERT Solution - Dissolution of Partnership (Part - 3) | Accountancy Class 12 - CommerceNCERT Solution - Dissolution of Partnership (Part - 3) | Accountancy Class 12 - Commerce

The document NCERT Solution - Dissolution of Partnership (Part - 3) | Accountancy Class 12 - Commerce is a part of the Commerce Course Accountancy Class 12.
All you need of Commerce at this link: Commerce
47 videos|180 docs|56 tests

Top Courses for Commerce

FAQs on NCERT Solution - Dissolution of Partnership (Part - 3) - Accountancy Class 12 - Commerce

1. What are the key steps involved in the dissolution of a partnership?
Ans. The key steps involved in the dissolution of a partnership include: 1. <b>Decision Making</b>: Partners must agree to dissolve the partnership either through mutual consent or based on pre-agreed terms in the partnership deed. 2. <b>Notice of Dissolution</b>: A formal notice should be issued to inform all stakeholders, including clients, vendors, and employees, about the dissolution. 3. <b>Settlement of Accounts</b>: All assets and liabilities of the partnership should be assessed, and accounts must be settled among partners, including the distribution of remaining assets. 4. <b>Final Accounts Preparation</b>: Prepare final accounts to reflect the financial position of the partnership at the time of dissolution. 5. <b>Legal Formalities</b>: Depending on local laws, certain legal formalities may need to be completed, such as filing with relevant authorities to officially record the dissolution.
2. What are the reasons for the dissolution of a partnership?
Ans. Reasons for the dissolution of a partnership can include: 1. <b>Mutual Agreement</b>: Partners may agree to dissolve the partnership voluntarily. 2. <b>Expiry of Term</b>: If the partnership was established for a specific period, it automatically dissolves when that period ends. 3. <b>Achievement of Purpose</b>: The partnership may dissolve once its business objectives have been met. 4. <b>Death or Insolvency</b>: The death, insolvency, or incapacity of a partner can lead to dissolution unless otherwise agreed in the partnership deed. 5. <b>Legal Reasons</b>: Certain legal actions, such as a court order or violation of laws, can also necessitate dissolution.
3. How is the profit distribution handled during the dissolution of a partnership?
Ans. During the dissolution of a partnership, profit distribution is handled as follows: 1. <b>Final Settlement</b>: Before distribution, all liabilities of the partnership must be settled, including debts owed to creditors. 2. <b>Asset Valuation</b>: The assets of the partnership are valued, and any remaining assets after settling liabilities are considered for distribution. 3. <b>Partnership Agreement</b>: Profits or losses are distributed among partners according to the profit-sharing ratio specified in the partnership agreement. 4. <b>Any Losses</b>: If there are losses, they are also shared according to the agreed profit-sharing ratio. 5. <b>Final Accounts</b>: After preparing final accounts, the remaining profits or losses will be settled among the partners in proportion to their capital contributions or as per the partnership deed.
4. What legal formalities must be completed after the dissolution of a partnership?
Ans. After the dissolution of a partnership, the following legal formalities should be completed: 1. <b>Public Notice</b>: A public notice may be published to inform third parties about the dissolution. 2. <b>Tax Filings</b>: Final tax returns must be prepared and filed with the relevant tax authorities. 3. <b>Settlement with Creditors</b>: Ensure that all creditors are paid off and obtain necessary releases or waivers from them. 4. <b>Cancellation of Registration</b>: If the partnership was registered, the registration should be canceled with the appropriate registrar or authority. 5. <b>Distribution Records</b>: Keep detailed records of the distribution of assets among the partners for future reference and legal compliance.
5. What is the significance of preparing final accounts during the dissolution process?
Ans. Preparing final accounts during the dissolution process is significant because: 1. <b>Financial Clarity</b>: It provides a clear picture of the financial position of the partnership at the time of dissolution. 2. <b>Settlement Basis</b>: Final accounts serve as a basis for settling accounts among partners and determining their respective shares of profits or losses. 3. <b>Transparency</b>: They ensure transparency in the distribution of assets and liabilities, fostering trust among partners. 4. <b>Legal Compliance</b>: Accurate final accounts are important for legal compliance and can serve as evidence in case of disputes. 5. <b>Tax Obligations</b>: Final accounts help in fulfilling tax obligations by providing necessary financial information required for tax filings.
47 videos|180 docs|56 tests
Download as PDF
Explore Courses for Commerce exam

Top Courses for Commerce

Signup for Free!
Signup to see your scores go up within 7 days! Learn & Practice with 1000+ FREE Notes, Videos & Tests.
10M+ students study on EduRev
Related Searches

Exam

,

Extra Questions

,

Free

,

Sample Paper

,

video lectures

,

past year papers

,

Viva Questions

,

NCERT Solution - Dissolution of Partnership (Part - 3) | Accountancy Class 12 - Commerce

,

pdf

,

study material

,

Objective type Questions

,

NCERT Solution - Dissolution of Partnership (Part - 3) | Accountancy Class 12 - Commerce

,

Important questions

,

mock tests for examination

,

MCQs

,

shortcuts and tricks

,

ppt

,

Semester Notes

,

Summary

,

Previous Year Questions with Solutions

,

practice quizzes

,

NCERT Solution - Dissolution of Partnership (Part - 3) | Accountancy Class 12 - Commerce

;