T S Grewal Dissolution Solutions

Answer1:Journal

S.N.ParticularsL.F.DebitsAmountRsCreditAmountRs

(a)Realisation A/cDr.1,500

To Cash A/c1,500

(Realisation expenses paid)

(b)Realisation A/cDr.600

To Mohans Capital A/c600

(Realisation expenses paid by Mohan)

(c)Realisation A/cDr.2,000

To Mohans capital A/c2,000

(Commission allowed to Mohan on dissolution of the firm)

(d)No entryNo journal entry is passed because both motor car and creditors accounts have already been transferred to Realisation Account and nothing is recovered or paid in terms of Cash and Bank

Answer2:Journal



To Ajays Capital A/c10,000

(Expenses on Realisation paid by Ajay)

(b)Rahuls Capital A/cDr.15,000

To Cash A/c15,000

(Realisation Expenses paid by Rahul )


To Rameshs Capital A/c25,000

(Remuneration allowed to Ramesh on account of taking responsibility of dissolution)

(d)Realisation A/cDr.20,000

To Anujs Capital A/c20,000

(Remunation allowed to Anuj)

Anujs Capital A/cDr.5,000

To Bank A/c5,000

(Realisation expenses paid by the firm on behalf of Anuj)

Answer3:Journal



To Aloks Capital A/c7,500

(Remuneration allowed to Alok)

Aloks capital A/cDr.10,000

To Bank A/c10,000

(Expenses paid by the firm on behalf of Alok)

Alternatively, only one single entry can also be passed instead of above two entries.

Realisation A/cDr.7,500

Aloks Capital A/cDr.2,500

To Bank A/c10,000


(b)Realisation A/cDr.2,000

Ravinders Capital A/cDr.3,000

To Bank A/c5,000



To Amits Capital A/c10,000

(Realisation expenses paid by Amit on behalf of the firm)

Answer4:

Journal


(a)Bank A/cDr.50,000

To Realisation A/c50,000

(Assets realized for cash)

(b)Realisation A/cDr.10,000

To Bank A/c10,000

(Payment of liabilities made)


To Xs Capital A/c2,500

(5% commission allowed to Mr. Xs on sale of assets of Rs 50,000)


To Amrits Capital A/c10,000

(Amrit was allowed remuneration on account of realisation)

Amrits Capital A/cDr.15,000

To Bank A/c15,000

(Realisation expenses paid on behalf of amrit)

Alternatively, only one single entry can also be passed instead of above two entries.


Amrits Capital A/cDr.5,000

To Bank A/c15,000


(e)Bad debts Recovered A/cDr.3,600


(Bad debts recovered)

(f)Cash A/cDr.15,000


(Investments are realised at 150%)

Answer5:

Journal



To Bank A/c12,000

(Bank loan paid at the time of dissolution)

(b)Qs Capital A/cDr.16,000


(Stock taken over by Q)


To Ps Capital A/c4,000

(Creditors paid by P)

(d)Bank A/cDr.1,200


(Unrecorded assets realised)

(e)Realisation A/cDr.2,000

To Qs Capital A/c2,000

(Realisation expenses paid by Q)

(f)Realisation A/cDr.36,000

To Ps Capital A/c20,000

To Qs Capital A/c16,000

(Realisation Profit distributed )

Answer6:Journal

DateParticularsL.F.DebitAmountRsCredit AmountRs

Realisation A/cDr.9,22,000

To Land & Building A/c4,00,000

To Machinery A/c3,00,000

To Debtors A/c2,22,000

(Being assets transferred)

Creditors A/cDr.1,79,000

Employees Provident Fund A/cDr.21,000

To Realisation A/c2,00,000

(Being liabilities transferred)

Bank A/cDr.4,30,000


(Being Land & Building realised)

Bank A/c (2,25,000 + 1,000)Dr.2,26,000


(Being Debtors realised along-with Bad-debts recovered)

Bank A/cDr.25,000


(Being Unrecorded Investments sold)

Bank A/cDr.2,80,000


(Being Machinery took over by Vichal for Cash)

Realisation A/cDr.1,75,000

To Bank A/c (85,500 + 89,500)1,75,000

(Being 50% Creditors of Rs 89,500 were paid at a discount of Rs 4,000 and remaining 50% were settled in full)


To Achals Capital A/c24,000

To Vichals Capital A/c40,000

(Being profits on realisation transferred)

Achals Capital A/cDr.3,24,000

Vichals Capital A/cDr.5,40,000

To Bank A/c8,64,000

(Being Partners paid off)

Answer7:Journal

DateParticularsL.F.DebitAmountRsCredit AmountRs


To Kunals Capital A/c6,000

(Being Kunal agrees to pay off his wifes loan)


To Cash A/c27,000

(Being Creditors worth Rs 30,000 paid off at a discount of 10%)

Rohits Loan A/cDr.70,000

To Cash A/c70,000

(Being Loan paid by the firm)

Kunals Capital A/cDr.3,000


(Being asset taken over by Kunal)

Rohits Capital A/cDr.5,000

Kunals Capital A/cDr.5,000

Sarthaks Capital A/cDr.5,000

To Profit and Loss A/c15,000

(Being Loss distributed equally)


To Sarthaks Capital A/c15,000

(Being remuneration of Rs 15,000 paid for completion of dissolution process)

Answer8:Journal



To Bank A/c5,000

(Payment made for realisation expenses)

(b)No Entry

(c)Ys Capital A/cDr.10,000


(Machine taken over by Y)



(X accepted the liabilities)

(e)

(f)Ys Loan A/cDr.20,000

To bank A/c20,000

(Payment of Ys Loan made)

Xs Capital A/cDr.25,000

Ys Capital A/cDr.15,000

Zs Capital A/cDr.10,000

To Profit and Loss A/c50,000

(Balance of Profit and Loss account distributed among partners in their old ratio)

(g)Realisation A/cDr.50,000

To Bank A/c50,000

(Bank Loan paid)

(h)Bank A/cDr.17,000


(Unrecorded assets sold)

(i)Zs Capital A/cDr.14,000


(Stock taken over by Z)

(j)Realisation A/cDr.30,000


To Ys Capital A/c9,000

To Zs Capital A/c6,000

(Profit on realisation distributed among partners)

Answer9:Realisation Account

Dr.Cr.

ParticularsAmountRsParticularsAmountRs

Machinery10,580Sundry Creditors14,000

Stock4,740Bank (Assets Realised)19,500

Debtors5,540

Bank A/c:Loss transferred to:

Creditors14,000Xs Capital A/c1,200

Expenses44014,440Ys Capital A/c6001,800

35,30035,300

Partners Capital Accounts

Dr.Cr.

ParticularsXYParticularsXY

Realisation A/c (Loss)1,200600Balance b/d4,0003,000

Reserve for Contingencies333167

Bank A/c3,1332,567

4,3333,1674,3333,167

Bank Account

Dr.Cr.


Balance b/d640Realisation A/c14,440

Realisation A/c19,500Xs Capital A/c3,133

Ys Capital A/c2,567

20,14020,140


Dr.Cr.


Building45,000Creditors14,000

Machinery15,000Bank A/c:

Furniture12,000Stock22,000

Debtors8,000Debtors7,500

Stock24,000Machinery16,000

Building35,00080,500

Bank A/c:

Creditors14,000Bales Loan500

Expenses2,50016,500Yales Capital A/c (Furniture )9,000

Loss transferred to:

Bales Capital A/c8,250

Yales Capital A/c8,25016,500

1,20,5001,20,500


Dr.Cr.

ParticularsBaleYaleParticularsBaleYale

Realisation A/c (Loss)8,2508,250Balance b/d50,00040,000

Realisation A/c9,000General Reserve(Old Ratio) 4,0004,000

Bank A/c45,75026,750

54,00044,00054,00044,000

Bales Loan Account

Dr.Cr.


Bank A/c2,500Balance b/d3,000

Realisation A/c500

3,0003,000

Bank Account

Dr.Cr.


Balance b/d11,000Bales Loan2,500

Realisation A/c80,500Realisation A/c16,500

Bales Capital A/c45,750

Yales Capital A/c26,750

91,50091,500

Answer11:

Realisation Account

Dr.Cr.


Furniture11,000Provision for Bad Debts400

Investments7,000Sundry creditors9,500

Stoke38,000

Debtors8,000Rathis Capital (Investment)7,500

Cash A/c:Cash A/c (Furniture, debtors, stock )48,400

Sundry Creditors9,000Loss transferred to:

Expenses6009,600Jathis Capital A/c3,900

Sethi s Capital A/c2,340

Rathis Capital A/c1,5607,800

73,60073,600


Dr.Cr.

ParticularsJathiSethiRathiParticularsJathiSethiRathi

Realisation A/c (Loss)3,9002,3401,560Balance b/d28,00019,0008,000

Realisation A/c7,500

Cash A/c24,10016,660Cash A/c1,060

28,00019,0009,06028,00019,0009,060

Cash Account

Dr.Cr.


Balance b/d900Realisation A/c9,600

Realisation A/c48,400Jathis Capital A/c24,100

Rathis Capital1,060Sethis Capital A/c16,660

50,36050,360


Dr.Cr.


Stock25,000Sundry Creditors21,500

Debtors18,000Loan21,500

Furniture5,000

Machinery8,000Cash A/c:

Fixed Assets2,000

Cash A/c:Stock and Debtors33,00035,000

Sundry creditors21,500

Expenses600Loss transferred to:

Loan21,50043,600Sharmas Capital A/c10,800

Vermas Capital A/c7,200

Guptas Capital A/c3,60021,600

99,60099,600


Dr.Cr.

ParticularsSharmaVermaGuptaParticularsSharmaVermaGupta


Cash A/c4,8002,200600

10,8007,2003,60010,8007,2003,600

Cash Account

Dr.Cr.


Balance b/d1,000Realisation A/c43,600

Realisation A/c35,000

Sharmas Capital4,800

Vermas Capital2,200

Guptas Capital600

43,60043,600


Dr.Cr.


Debtors16,000Provision for Doubtful Debts400

Stock12,000Creditors24,000

Furniture4,000

Building44,000Bank A/c:

Bank A/c:Stock10,000

Creditors22,000Furniture2,000

Liability for damages6,000Building50,000

Expense2,00030,000Debtors14,00076,000


As Capital A/c2,240

Bs Capital A/c2,240

Cs Capital A/c1,1205,600

1,06,0001,06,000


Dr.Cr.

ParticularsABCParticularsABC


Reserve A/c4,0004,0002,000

Bank A/c31,76025,76012,880

34,00028,00014,00034,00028,00014,000

Bank Account

Dr.Cr.



Realisation A/c76,000As Capital A/c31,760

Bs Capital A/c25,760

Cs Capital A/c12,880

1,00,4001,00,400


Dr.Cr.


Stock6,000Creditors38,000

Debtors19,000Mrs. As Loan10,000

Furniture4,000

Plant28,000As Capital A/c (Investments)8,000

Investments10,000Bank A/c:

As Capital A/c (Mrs. As loan)10,000Stock5,000

Bank A/c :Debtors18,500

Expenses1,600Furniture4,500

Creditors37,00038,600Plant25,00053,000


As Capital A/c3,960

Bs Capital A/c2,6406,600

1,15,6001,15,600


Dr.Cr.

ParticularsABParticularsAB

Realisation (loss)3,9602,640Balance b/d10,0008,000

Realisation A/c8,000Reserve A/c3,0002,000

Profit and Loss A/c4,5003,000Realisation A/c10,000

Bank A/c6,5404,360

23,00010,00023,00010,000

Bs Loan Account

Dr.Cr.


Balance b/d15,000

Bank A/c15,000

15,00015,000

Bank Account

Dr.Cr.



Realisation A/c53,000As Capital A/c6,540

Bs Capital A/c4,360

Bs Loan A/c15,000

64,50064,500


Dr.Cr.


Building40,000Provision for Doubtful Debts2,000

Plant and machinery40,000Bills Payable40,000

Stock19,000Loan from Bank30,000

Sundry Debtors42,000

Bank A/c:Bank A/c:

Bills Payable32,000Stock23,400

Outstanding Bill800Debtors21,000

Expenses1,250Building36,000

Loan from Bank30,00064,050Plant and Machinery36,0001,16,400


Ps Capital A/c9,250

Qs Capital A/c5,550

RCapital A/c1,85016,650

2,05,0502,05,050


Dr.Cr.

ParticularsPQRParticularsPQR


Reserve Fund5,0003,0001,000

Bank A/c39,75033,45019,150

49,00039,00021,00049,00039,00021,000

Bank Account

Dr.Cr.



Realisation A/c1,16,400Ps Capital A/c39,750

Qs Capital A/c33,450

Rs Capital A/c19,150

1,56,4001,56,400


Dr.Cr.


Freehold property16,000Sundry creditors2,000

Investments4,000

Sundry Debtors2,000Dipalis Capital A/c (Investment)3,800

Stock3,000Bank A/c:

Bank A/c:Freehold Property18,000

Creditors1,900Sundry Debtors1,800

Expenses4002,300Stock2,800

Computer Printer1,00023,600

Profit transferred to:

Dipalis Capital A/c1,260

Rajashris Capital A/c8402,100

29,40029,400


Dr.Cr.

ParticularsDipaliRajashriParticularsDipaliRajashri

Realisation A/c (Investments)3,800Balance b/d17,50010,000

Profit and Loss A/c900600

Bank A/c15,86011,440Realisation A/c (Profit)1,260840

19,660 11,44019,66011,440

Bank Account

Dr.Cr.



Cash A/c4,000Dipalis Capital A/c15,860

Realisation A/c23,600Rajashris Capital A/c11,440

29,60029,600


Dr.Cr.


Stock19,800Provision for Doubtful Debts1,000

Debtors15,000Creditors17,000

Investments4,000Bills Payable12,000

Furniture10,000Vinods Capital A/c5,000

Machinery33,000Bank A/c:

Bank (Expenses)2,000Stock17,500

Bank (Creditors)17,000Debtors14,500

Bank (Bills Payable)12,000Furniture6,800

Machinery30,30069,100

Loss on Realisation transferred to:

Vinod4,350

Vijay2,900

Venkat1,4508,700

1,12,8001,12,800

Partners Capital Account

Dr.Cr.

ParticularsVinodVijayVenkatParticularsVinodVijayVenkat

Realisation A/c (Investments)5,000Balance b/d25,00011,0008,000

Realisation A/c (Loss)4,3502,9001,450General Reserve3,0002,0001,000

Bank A/c18,65010,1007,550

28,00013,0009,00028,00013,0009,000

Vinods Loan A/c

Dr.Cr.


Bank A/c5,300Balance b/d5,300

5,3005,300

Bank A/c

Dr.Cr.


Balance b/d3,500Realisation A/c (Expenses)2,000

Realisation A/c (Assets realised)69,100Realisation A/c (Creditors)17,000

Realisation A/c (Bills Payable)12,000

Vinods Loan A/c5,300

Vinods Capital A/c18,650

Vijays Capital A/c10,100

Venkats Capital A/c7,550

72,60072,600

T S Grewal Dissolution Solutions

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