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Dissolution of a Partnership Firm – Chapter 7
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A and B are partners in a firm sharing profits and losses in the ratio of 3 : 2. On 31st March, 2026, their Balance Sheet was as follows:
| Liabilities | ₹ | ₹ | Assets | ₹ |
|---|---|---|---|---|
| Sundry Creditors | 38,000 | Cash at Bank | 11,500 | |
| Loan by Mrs. A | 10,000 | Stock | 6,000 | |
| Loan by B | 15,000 | Sundry Debtors | 19,000 | |
| Reserve | 5,000 | Furniture | 4,000 | |
| A’s Capital | 10,000 | Plant | 28,000 | |
| B’s Capital | 8,000 | 18,000 | Investments | 10,000 |
| Profit & Loss A/c | 7,500 | |||
| 86,000 | 86,000 |
The firm was dissolved on 31st March, 2026 and both the partners agreed to the following:
- (a) A took Investments at an agreed value of ₹ 8,000. He also agreed to settle Loan by Mrs. A.
- (b) Other assets realised as: Stock—₹ 5,000; Debtors—₹ 18,500; Furniture—₹ 4,500; Plant—₹ 25,000.
- (c) Expenses of realisation came to ₹ 1,600.
- (d) Creditors agreed to accept ₹ 37,000 in full settlement of their claims.
Prepare Realisation Account, Partners’ Capital Accounts and Bank Account.
(NCERT, Modified)
[Ans.: Loss on Realisation—₹ 6,600; A to be paid—₹ 6,540; B to be paid—₹ 4,360;
Total of Bank Account—₹ 64,500.]
Total of Bank Account—₹ 64,500.]
Solution:
This topic was modified 2 months ago 3 times by Wings Unschool Admin
Posted : 23/07/2026 8:41 am