Dissolution of Partnership Firm — Class 12 Accountancy PYQs

Wayne, Shaan and Bryan were partners in a firm. Shaan had advanced a loan of ₹ 1,00,000 to the firm. On 31st March, 2024 the firm was dissolved. After transferring various assets (other than cash & bank) and outside liabilities to Realisation Account, Shaan took over furniture of book value of ₹ 90,000 in part settlement of his loan amount. For the payment of balance amount of Shaan's loan Bank Account will be credited with :
(A) ₹ 1,00,000
(B) ₹ 90,000
(C) ₹ 1,90,000
(D) ₹ 10,000

Arushi, Vivaan and Mitali were partners in a firm. On 31st March 2024, the firm was dissolved. On that date the firm had debtors of ₹ 60,000 and provision for doubtful debts of ₹ 3,000 were existing in the books. Debtors of ₹ 8,000 proved bad and full amount was realised from the remaining debtors. The amount realised from debtors was :
(A) ₹ 60,000
(B) ₹ 55,000
(C) ₹ 52,000
(D) ₹ 49,000

Pass necessary journal entries for the following transactions on dissolution of the firm of Rajesh, Somesh and Yogesh after various assets (other than cash) and third party liabilities have been transferred to Realisation Account :
(i) Rajesh took over stock of ₹ 4,00,000 at a discount of 20%.
(ii) Somesh agreed to take over the firm's furniture, not recorded in the books of the firm at ₹ 80,000.
(iii) Land and Building of the book value of ₹ 60,00,000 was sold for ₹ 90,00,000 through a broker who charged 10% commission.
(iv) Ashish, an old customer, whose account for ₹ 70,000 was written off as bad in the previous year, paid 60% of the amount.
(v) Sundry Creditors of ₹ 3,00,000 were settled at a discount of 10%.
(vi) Realisation expenses amounting to ₹ 21,000 were paid by Yogesh.

Pass necessary journal entries for the following transactions on dissolution of the firm of Sachin, Virat and Rohit after various assets (other than cash) and third party liabilities have been transferred to Realisation Account :
(i) Sachin took over stock of book value of ₹ 80,000 at a discount of 10%.
(ii) Virat agreed to take over the firm's creditors of the book value of ₹ 70,000 at a valuation of ₹ 65,000.
(iii) Rohit took over his wife's loan of ₹ 3,00,000.
(iv) There was an old typewriter which had been written off completely from the books. It realised ₹ 10,000.
(v) Land and Building of the book value of ₹ 50,00,000 was sold for ₹ 70,00,000 through a broker who charged 5% commission on the deal.
(vi) Loss on realisation ₹ 30,000 was to be distributed between Sachin, Virat and Rohit equally.

Pass necessary journal entries for the following transactions on dissolution of the partnership firm of Preeti, Varsha and Kamala after various assets (other than cash) and third party liabilities have been transferred to Realisation Account :
(i) Preeti took over the debtors of book value of ₹ 90,000 at a discount of 20%.
(ii) Kamala took over her husband's loan of ₹ 4,00,000.
(iii) There were 100 shares of ₹ 10 each in Star Ltd. acquired at a cost of ₹ 2,00,000 which had been written off completely from the books. These shares were valued at ₹ 2,400 each and divided among the partners in their profit sharing ratio.
(iv) Sundry creditors amounting to ₹ 5,00,000 were settled at a discount of 10%.
(v) Land and Building of the book value of ₹ 40,00,000 was sold for ₹ 60,00,000 through a broker who charged 5% commission.
(vi) Varsha paid the dissolution expenses of ₹ 45,000 on behalf of the firm.

Pass necessary journal entries for the following transactions on the dissolution of the partnership firm of Sami and Usha after various assets (other than cash) and external liabilities have been transferred to Realisation Account :
(i) Creditors of ₹ 18,000 took over all the investments at ₹ 11,000. Remaining amount was paid to them through a cheque.
(ii) A debtor whose debt of ₹ 23,000 was written off as bad paid ₹ 15,000 in full settlement.
(iii) Usha had given a loan of ₹ 16,000 to the firm. She accepted ₹ 14,000 in full settlement of her loan.
(iv) Stock of the book value of ₹ 20,000 was taken over by Sami and Usha in their profit sharing ratio.
(v) The firm paid realisation expenses amounting to ₹ 9,000 on behalf of Sami.
(vi) The firm had furniture of ₹ 40,000. Usha took over 50% of the furniture at a discount of 10% and the remaining furniture was sold at a profit of 20% on book value.

Pass the necessary journal entries for the following transactions on the dissolution of a partnership firm of Vibha and Ajit after various assets (other than cash) and external liabilities have been transferred to Realisation Account :
(i) Creditors worth ₹ 46,000 accepted ₹ 9,000 cash and furniture of ₹ 32,000 in full settlement of their claim.
(ii) The firm had stock of ₹ 20,000. Ajit took over 40% of the stock at a discount of 10% while the remaining stock was sold for ₹ 18,000.
(iii) Vibha was appointed to look after dissolution work for which she was allowed a remuneration of ₹ 16,000. Vibha agreed to bear the dissolution expenses. Actual dissolution expenses ₹ 15,000 were paid by Vibha.
(iv) Ajit's loan of ₹ 45,000 was settled at ₹ 42,000.
(v) A machine which was not recorded in the books was taken over by Vibha at ₹ 23,000, whereas its expected value was ₹ 28,000.
(vi) The firm had a debit balance of ₹ 20,000 in the Profit and Loss Account on the date of dissolution.

Pass necessary journal entries for the following transactions on the dissolution of a partnership firm of Mansha and Rajiv after various assets (other than cash) and external liabilities have been transferred to Realisation Account :
(i) Mansha's loan of ₹ 18,000 was settled by giving her an unrecorded furniture of ₹ 20,000.
(ii) Machinery of the book value of ₹ 80,000 was sold at a loss of 10%.
(iii) A creditor of ₹ 40,000 accepted cash ₹ 21,000 and stock of the book value of 25,000 in full settlement of his claim.
(iv) Bank loan of ₹ 1,00,000 was paid along with interest of ₹ 10,000.
(v) Investments of the face value of ₹ 52,000 were sold in the open market for ₹ 63,000 for which a commission of ₹ 2,000 was paid to the broker.
(vi) Profit and Loss Account balance of ₹ 30,000 appeared on the asset side of the balance sheet.

Aavya, Mitansh and Praveen were partners in a firm. On 31st March, 2023, the firm was dissolved. Creditors took over furniture of book value of ₹ 50,000 at ₹ 45,000 in part settlement of their amount of ₹ 60,000. The balance amount was paid to them through cheque. The amount paid through cheque will be :
(A) ₹ 10,000
(B) ₹ 50,000
(C) ₹ 45,000
(D) ₹ 15,000

Archana, Vandana and Arti were partners in a firm sharing profits and losses in the ratio of 5 : 3 : 2. Their Balance Sheet on 31st March, 2023 was as follows :

Balance Sheet of Archana, Vandana and Arti as at 31st March, 2023

Liabilities	Amount (₹)	Assets	Amount (₹)
Capitals :		Investments	80,000
Archana 80,000		Plant	1,00,000
Vandana 70,000		Stock	40,000
Arti 60,000	2,10,000	Debtors	50,000
General Reserve	30,000	Cash at Bank	30,000
Creditors	60,000
	3,00,000		3,00,000

The firm was dissolved on the above date.
(i) Assets were realised as follows :
Debtors – ₹ 40,000
Stock – ₹ 50,000
Plant – ₹ 60,000
(ii) 25% of the Investments were taken over by Vandana at ₹ 18,000. Remaining Investments were taken over by Archana at 10% less than its book value.
(iii) Expenses of realisation ₹ 20,000 were paid by Arti.

Prepare Realisation Account.