List of top Accountancy Questions on Dissolution of Partnership Firms asked in CBSE CLASS XII

Pass necessary journal entries for the following transactions on the dissolution of the 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.

Madhur and Neeraj were partners in a firm sharing profits and losses in the ratio of 3 : 2. The Balance Sheet as at 31st March, 2024 was as follows: Balance Sheet of Madhur and Neeraj as at 31^st March, 2024

Liabilities	Amount (₹)	Assets	Amount (₹)
Capitals:		Machinery	7,00,000
Madhur	9,00,000	Investments	4,00,000
Neeraj	8,00,000	Debtors	11,00,000
Creditors	6,00,000	Stock	2,00,000
Bills Payable	2,00,000	Cash at Bank	1,00,000
Total	25,00,000	Total	25,00,000

The firm was dissolved on the above date and the following transactions took place:

Machinery was taken over by creditors in full settlement of their account.
Investments were taken over by Neeraj at 5,00,000.
One of the debtors of 1,00,000 was untraceable. Remaining debtors were realised at 10% less.
Stock was taken over by Madhur at 50% discount.
Realisation expenses amounting to 1,00,000 were paid by Madhur.
Prepare Realisation Account.

Madhavan, Chatterjee and Pillai were partners in a firm sharing profits and losses in the ratio of 2 : 1 : 2. On 31stMarch, 2024, their Balance Sheet was as follows :

Balance Sheet of Madhavan, Chatterjee and Pillai as at 31^st March, 2024

Liabilities	Amount (₹)	Assets	Amount (₹)
Creditors	1,10,000	Cash at Bank	4,05,000
Outstanding Expenses	17,000	Stock	2,20,000
Mrs. Madhavan’s Loan	2,00,000	Debtors	95,000
Chatterjee’s Loan	1,70,000	Less: Provision for Doubtful Debts	(5,000)
Capitals:	Madhavan – 2,00,000	Land and Building	1,82,000
	Chatterjee – 1,00,000	Plant and Machinery	1,00,000
	Pillai – 2,00,000
Total	9,97,000	Total	9,97,000

On the above date, the firm was dissolved and the following transactions took place :
Debtors were taken over by the creditors in full settlement of their claim.
Madhavan agreed to pay Mrs. Madhavan’s loan.
50% of the stock was taken over by Chatterjee at 10% less than the book value. The remaining stock was sold at a profit of 20%.
Land and Building was taken over by Pillai for $₹1,00,000$ and Plant and Machinery was sold as scrap for $₹20,000$.
Realisation expenses $₹17,000$ were paid by cheque.
Prepare Realisation Account.

In the event of dissolution of a partnership firm, the order of payment of losses including deficiencies of capital shall be:

On the dissolution of the partnership firm of Raman, Hari and Suresh, realisation expenses $₹17,000$ were paid by a debtor of $₹75,000$ on behalf of the firm. The remaining amount was received from him along with interest of $₹2,000$ for delayed payment. Realisation Account will be ___________ by ___________.

White, Shaun and Todd were partners in a firm sharing profits and losses equally. Shaun’s wife had advanced a loan of ₹ 1,00,000 to the firm. The firm was dissolved. Shaun’s wife’s loan had already been transferred to Realisation account. The account credited to discharge Shaun’s wife’s loan will be :

On dissolution, Mohan's loan of ₹10,000 will be discharged by crediting:

On dissolution of a firm, there was an unrecorded asset of $₹15,000$ which was taken over by a partner at $₹13,000$. Partner’s capital account will be debited by :

When realisation expenses are paid by a partner on behalf of the firm, then :

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:}
Creditors worth ₹ 46,000 accepted ₹ 9,000 cash and furniture of ₹ 32,000 in full settlement of their claim.

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.

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.

Ajit’s loan of ₹ 45,000 was settled at ₹ 42,000.

A machine which was not recorded in the books was taken over by Vibha at ₹ 23,000, whereas its expected value was ₹ 28,000.

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 firm after the transfer of assets and liabilities has been made to Realisation Account:
(i) Debtors of ₹ 60,000; provision for doubtful debts ₹ 2,000. ₹ 56,000 were collected.
(ii) Creditors were ₹ 80,000; settled at ₹ 76,000.

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:

Rishi, Manu and Komal were partners in a firm sharing profits and losses in the ratio of 3 : 4 : 5. On 31^st March, 2024 their firm was dissolved. After transferring sundry assets (except cash in hand and cash at bank) and third party liabilities to realisation account, the following transactions took place:
(i) A creditor of ₹2,00,000 took over an old machine for ₹70,000 that had been completely written off and his balance was settled at a discount of 10%.
(ii) Remaining creditors of ₹8,00,000 agreed to take over stock of ₹6,00,000 in full settlement of their claim.
(iii) The remaining stock of ₹3,00,000 was sold at a loss of 30%.
(iv) Dissolution expenses amounting to ₹90,000 were paid by Komal.
(v) Saransh, an old customer whose account for ₹40,000 was written off as bad debt in the previous year, paid ₹36,000.
(vi) Loss on dissolution amounted to ₹2,40,000.
Pass necessary journal entries for the above transactions to close the books of Rishi, Manu and Komal at the time of dissolution of the firm.

Tushar, Mehta and Ghosh were partners in a firm sharing profits and losses in the ratio of 1 : 2 : 4. On 31st March, 2024 their firm was dissolved. After transferring sundry assets (other than cash in hand and cash at bank) and external liabilities to realisation account, the following transactions took place: \begin{enumerate} \item There was a debit balance of ₹77,000 in the profit and loss account, which was transferred to the capital accounts of the partners. \item The firm had investments of ₹4,00,000 whose market price was ₹4,20,000. The investments were taken over by the partners in their profit sharing ratio at market price. \item The book value of the debtors was ₹8,00,000 and the provision for bad debts was ₹40,000. Debtors were realised at 90% of the book value and a debtor of ₹5,000 which had been previously written off as bad debt paid the full amount. \item Ram Lal, a creditor of ₹2,00,000 took over furniture of book value of ₹2,50,000 in full settlement of his claim. The remaining creditors allowed a discount of 10% on their claim of ₹2,20,000. \item Expenses on realisation amounted to ₹50,000 which were paid by the firm. \item Gain on realisation amounted to ₹42,000. \end{enumerate} Pass necessary journal entries for the above transactions in the books of the firm.

Show the following items under major heads and sub-heads (if any) in the Balance Sheet of the company as per Schedule III, Part I of the Companies Act, 2013:
(a) Calls in advance
(b) Public deposits
(c) Intangible assets under development

From the following information of Jamna Ltd., prepare a Comparative Statement of Profit and Loss for the year ended 31^st March, 2024.

Particulars	2022–23 (₹)	2023–24 (₹)
Revenue from operations	16,00,000	20,00,000
Cost of revenue from operations	8,00,000	10,00,000
Other expenses	2,00,000	4,00,000

Tax Rate: $40%$

Calculate the Operating Ratio from the following information:

Particulars	Amount (₹)
Revenue from Operations (Cash + Credit)	25,00,000
Purchases (Cash + Credit)	12,00,000
Carriage Inward	20,000
Salaries	1,45,000
Wages	85,000
Increase in Inventory	50,000

Lalit and Madan were partners in a firm sharing profits and losses in the ratio of 7 : 3. On 31st March, 2024 their firm was dissolved. After transferring sundry assets (other than cash) and third-party liabilities to Realisation Account, the following transactions took place: \begin{itemize} \item[(i)] The firm had stock of \rupee2,00,000. 40% of this stock was taken over by a creditor of \rupee1,00,000 in full settlement of his claim. The remaining stock was sold at a loss of 10%. \item[(ii)] The remaining creditors were paid \rupee2,10,000. \item[(iii)] Plant and Machinery of \rupee5,00,000 were accepted by Mrs. Madan against the settlement of her loan of \rupee5,40,000. \item[(iv)] Debtors of \rupee3,50,000 were sold to a debt collection agency who charged a commission of \rupee25,000. \item[(v)] Investments of \rupee1,00,000 were taken over by the partners in their profit-sharing ratio. \item[(vi)] Expenses of dissolution were \rupee8,000. \end{itemize} Pass necessary journal entries for the above transactions in the books of the firm.

Piyush and Mita were partners in a firm sharing profits and losses in the ratio of 5 : 2. On 31^st March, 2024, the firm was dissolved. After transferring various assets (other than cash) and third-party liabilities to the Realisation Account, the following transactions took place:

(i) Investments whose book value was ₹50,000 were realised at 70%.
(ii) Unrecorded liabilities of ₹21,000 were paid.
(iii) Piyush took over stock worth ₹78,000 at ₹65,000.

Pass necessary journal entries for the above transactions in the books of Piyush and Mita.

On dissolution of a partnership firm, if realisation expenses are paid by the firm on behalf of a partner, then such expenses are debited to which of the following account:

Pawan, a partner, was appointed to look after the process of dissolution of the firm for which he was allowed a remuneration of rupee 75,000. Pawan agreed to bear the dissolution expenses. Actual dissolution expenses rupee 60,000 were paid by Pawan. Pawan’s capital account will be credited by:

Assertion (A): In a partnership firm, the private assets of the partners can also be used to pay off the firm’s debts.
Reason (R): The liability of the partners for acts of the firm is limited.
Choose the correct option from the following: