Related InterviewSolutions

• Anup and Sumit are equal partners in a firm. They decided to dissolve the parntership on December 31, 2017. When the balance sheet is as under : The Assets were realised as follows :Rs. Lease hold land 72,000 Furniture 22,500 Stock 40,500 Plant 48,000 Sundry Debtors 10,500The 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.
• Rose and Lily shared profits in the ratio of 2:3. Their Balance Sheet on March 31, 2017 was as follows: Rose and Lily decided to dissolve the firm on the above date. Assets (except bills receivables) realised Rs. 4,84,000. Creditors agreed to take Rs. 38,000. Cost of realisation was Rs. 2,400. There was a Motor Cycle in the firm which was bought out of the firm’s money, was not shown in the books of the firm. It was now sold for Rs. 10,000. There was a contingent liability in respect of outstanding electric bill of Rs. 5,000 Bill Receivable taken over by Rose at Rs. 33,000. Show Realisation Account, Partners Capital Acount, Loan Account and Cash Account.
• Accumulated losses are transferred to —— (Current/Capital Accounts) in —— (equal ratio/profit sharing ratio).
• When the firm has agreed to pay the partner a fixed amount for realisation work irrespective of the actual amount spent, such fixed amount is debited to (Realisation/Capital) Account and Credited to (Capital/Bank) Account.
• Unrecorded liabilities when paid are shown in:A. Debit of Realisation AccountB. Debit of Bank AccountC. Credit of Realisation AccountD. Credit of Bank Account.
• When creditor accepts an asset whose value is more than the amount due to him, he will —— (pay/not pay) the excess amount which will be credited —— Account.
• The following is the Balance sheet of Tanu and Manu, who shares profit and losses in the ratio of 5:3, On December 31,2017: On 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.
• The following is the Balance Sheet of Gupta and Sharma as on December 31,2017: 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.
• The accumulated profits and reserves are transferred to :A. Realisation AccountB. Partners’ Capital AccountsC. Bank AccountD. None of the above.
• On dissolution of a firm, partner’s loan account is transferred to:A. Realisation AccountB. Partner’s Capital AccountC. Partner’s Current AccountD. None of the above.