Quiz about Secondary School in Accountancy

Question 1

Pass necessary journal entries on the dissolution of a firm in the following cases (a) Dharam a partner was appointed to look after the process of dissolution at a remuneration of ₹ 12000 and he had to bear the dissolution expenses. Dissolution expenses ₹ 11000 were paid by Dharam. (b) Jay a partner was appointed to look after the process of dissolution and was allowed a remuneration of ₹ 15000. Jay agreed to bear dissolution expenses. Actual dissolution expenses ₹ 16000 were paid by Vijay another partner on behalf of Jay. (c) Deepa a partner was to look after the process of dissolution and for this work she was allowed a remuneration of ₹ 7000. Deepa agreed to bear dissolution expenses. Actual dissolution expenses ₹ 6000 were paid from the firm’s bank account. (d) Dev a partner agreed to do the work of dissolution for ₹ 75000. He took away stock of the same amount as his commission. The stock had already been transferred to Realisation Account. (e) Jeev a partner agreed to do the work of dissolution for which he was allowed a commission of ₹ 10000. He agreed to bear the dissolution expenses. Actual dissolution expenses paid by Jeev were ₹ 12000. These expenses were paid by Jeev by drawing cash from the firm. (f) A debtor of ₹ 8000 already transferred to Realisation Account agreed to pay the realisation expenses of ₹ 7800 in full settlement of his account.

Accepted Answer

NA

Question 2

Bale and Yale are equal partners of a firm. They decide to dissolve their partnership on 31st March2018 at which date their Balance Sheet stood as (a) The assets realised were Stock ₹ 22000; Debtors ₹ 7500; Machinery ₹ 16000; Building ₹ 3500. (b) Yale took over the Furniture at ₹ 9000. (c) Bale agreed to accept ₹ 2500 in full settlement of his Loan Account. (d) Dissolution Expenses amounted to ₹ 2500. Prepare the (i) Realisation Account (ii) Capital Accounts of Partners (iii) Bale’s Loan Account (iv) Bank Account.

Accepted Answer

NA

Question 3

A B and C were equal partners. On 31st March 2018 their Balance Sheet stood as The firm was dissolved on the above date on the following terms (a) For the purpose of dissolution Investments were valued at ₹ 18000 and A took over the Investments at this value. (b) Fixed Assets realised ₹ 29700 whereas Stock and Debtors realised ₹ 80000. (c) Expenses of realisation amounted to ₹ 1300. (d) Creditors allowed a discount of ₹ 800. (e) One Bill receivable for ₹ 1500 under discount was dishonoured as the acceptor had become insolvent and was unable to pay anything and hence the bill had to be met by the firm. Prepare Realisation Account Partner’s Capital Accounts and Cash Account showing how the accounts would finally be settled among the partners.

Accepted Answer

NA

Question 4

Ramesh and Umesh were partners in a firm sharing profits in the ratio of their capitals. On 31st March 2013 their Balance Sheet was as follows On the above date the firm was dissolved. (a) Ramesh took over 50% of stock at ₹ 10000 less then the book value. The remaining stock was sold at a loss of ₹ 15000. Debtors were realised at a discount of 5%. (b) Furniture was taken over by Umesh for ₹ 50000 and machinery was sold for ₹ 450000. (c) Creditors were paid in full. (d) There was an unrecorded bill for repairs for ₹ 160000 which was settled at ₹ 140000. Prepare Realisation Account.

Accepted Answer

NA

Question 5

Vinod Vijay and Venkat are partners sharing profits and losses in the ratio of 3 2 1. They decided to dissolve their firm on 31st March 2018 the date on which their Balance Sheet stood as The following additional information is given (a) The Investments are taken over by Vinod for ₹ 5000 (b) (c) Expenses on realisation amounted to ₹ 2000. Close the books of the firm giving relevant Ledger Accounts.

Accepted Answer

NA

Question 6

Shilpa Meena and Nanda decided to dissolve their partnership on 31st March 2018. Their profit-sharing ratio was 3 2 1 and their Balance Sheet was as under It is agreed as follows The stock of value of ₹ 41660 are taken over by Shilpa for ₹ 35000 and she agreed to discharge bank loan. The remaining stock was sold at ₹ 14000 and debtors amounting to ₹ 10000 realised ₹ 8000. Land is sold for ₹ 110000. The remaining debtors realised 50% at their book value . Cost of realisation amounted to ₹ 1200. There was a typewriter not recorded in the books worth of ₹ 6000 which were taken over by one of the Creditors at this value. Prepare Realisation Account Partners Capital Accounts and Cash Account to close the books of the firm.

Accepted Answer

NA

Question 7

Balance Sheet of a firm as at 31st March 2018 when it was decided to dissolve the same was ₹19500 were realised from all assets except Cash at Bank. The cost of winding up came to ₹ 440. X and Y shared profits in the ratio of 2 1 respectively. Prepare Realisation Account and Capital Accounts of Partners.

Accepted Answer

NA

Question 8

What journal entries would be passed for discharge of following unrecorded liabilities on the dissolution of a firm of partners A and B (a) There was a contingent liability in respect of bills discounted but not matured of ₹ 18500. An acceptor of one bill of ₹ 2500 became insolvent and fifty paise in a rupee was recovered. The liability of the firm on account of this bill discounted and dishonoured has not so far been recorded. (b) There was a contingent liability in respect of a claim fro damages for ₹ 75000 such liability was settled for ₹ 50000 and paid by the partner A. (c) Firm will have to pay ₹ 10000 as compensation to an injured employee which was a contingent liability not accepted by the firm. (d) ₹ 5000 for damages claimed by a customer has been disputed by the firm. It was settled at 70% by a compromise between the customer and the firm.

Accepted Answer

NA

Question 9

Pass the journal entries for the following transactions on the dissolution of the firm of P and Q after various assets (other than cash) and outside liabilities have been transferred to Realisation Account (a) Stock ₹ 200000. P took over 50% of stock at a discount of 10%. Remaining stock was sold at a profit of 25% on cost. (b) Debtors ₹ 225000. Provision for Doubtful Debts ₹ 25000; ₹ 20000 of the book debts proved bad. (c) Land and Building (Book value ₹ 1250000) sold for ₹ 1500000 through a broker who changed 2% commission. (d) Machinery (Book value ₹ 600000) was handed over to a creditor at a discount of 10%. (e) Investment (Book value ₹ 60000) realised at 125%. (f) Goodwill of ₹ 75000 and prepaid fire insurance of ₹ 10000. (g) There was an old furniture in the firm which had been written off completely in the books. This was sold for ₹ 10000. (h) Z an old customer whose account for ₹ 20000 was written off as bad in the previous year paid 60%. (i) P undertook to pay Mrs. P’s loan of ₹ 50000. (j) Trade creditors ₹ 160000. Half of the trade creditors accepted Plant and Machinery at an agreed valuation of ₹ 54000 and cash in full settlement of their claims after allowing a discount of ₹ 16000. Remaining trade creditors were paid 90% in final settlement.

Accepted Answer

NA

Question 10

Lal and Pal were partners in a firm sharing profits in the ratio of 3 7. On 1st April 2015 their firm was dissolved. After transferring assets (other than cash and outsider’s liabilities to Realisation Account you are given the following information (a) A creditor of ₹ 360000 accepted machinery valued at ₹ 500000 and paid to the firm ₹ 140000. (b) A second creditor for ₹ 50000 accepted stock ₹ 45000 in full settlement of his claim. (c) A third creditor amounting to ₹ 90000 accepted ₹ 45000 in cash and investments worth ₹ 43000 in full settlement of his claim. (d) Loss on dissolution was ₹ 15000. Pass necessary journal entries for the above transactions in the books of firm assuming that all payments were made by cheque.

Accepted Answer

NA

Question 11

Rohit Kunal and Sarthak are partners in a firm. They decided to dissolve their firm. Pass necessary journal entries for the following after various assets (other than Cash and Bank) and the third party liability have been transferred to Realisation Account (a) Kunal agreed to pay off his wife’s loan of ₹ 6000. (b) Total Creditors of the firm were ₹ 40000. Creditors worth ₹ 10000 were given a piece of furniture costing ₹ 8000 in full and final settlement. Remaining Creditors allowed a discount of 10%. (c) Rohit had given a loan of ₹ 70000 to the firm which was duly paid. (d) A machine which was not recorded in the books was taken over by Kunal at ₹ 3000 whereas its expected value was ₹ 5000. (e) The firm had a debit balance of ₹ 15000 in the Profit and Loss Account on the date of dissolution. (f) Sarthak paid the realisation expenses of ₹ 16000 out of his private funds who was to get a remuneration of ₹ 15000 for completing dissolution process and was responsible to bear all the realisation expenses.

Accepted Answer

NA

Question 12

Aman and Harsh were partners in a firm. They decided to dissolve their firm. Pass necessary journal entries for the following after various assets (other than cash and bank) and third party liabilities have been transferred to Realisation Account (a) There was furniture worth ₹ 50000. Aman took over 50% of the furniture at 10% discount and the remaining furniture was sold at 30% profit on book value. (b) Profit and Loss Account was showing a credit balance of ₹ 15000 on the date of dissolution. (c) Harsh’s loan of ₹ 6000 was discharged at ₹ 6200. (d) The firm paid realisation expenses amounting to ₹ 5000 on behalf of Harsh who had to bear these expenses. (e) There was a bill for 1200 under discount. The bill was received from Soham who proved insolvent and a first and final dividend of 25% was received from his estate. (f) Creditors to whom the firm owed ₹ 6000 accepted stock of ₹ 5000 at a discount of 5% and the balance in cash.

Accepted Answer

NA

Question 13

Pass necessary journal entries for the following transactions on the dissolution of the firm P and Q after the various assets (other than cash) and outside liabilities have been transferred to Realisation Account (a) Bank Loan ₹ 12000 was paid. (b) Stock worth ₹ 16000 was taken over by partner Q. (c) Partner P paid a creditor ₹ 4000. (d) An asset not appearing in the books of accounts realised ₹ 1200. (e) Expenses of realisation ₹ 2000 were paid by partner Q. (f) Profit on realisation ₹ 36000 was distributed between P and Q in 5 4 ratio.

Accepted Answer

NA

Question 14

X Y and Z are partners in a firm sharing profits in the ratio of 3 2 1 respectively. The firm was dissolved on 1st March 2013. After transferring assets (other than cash) and third party liabilities to the Realisation Account you are provided with the following information (a) There was a balance of ₹ 18000 in the firm’s Profit and Loss Account. (b) There was an unrecorded bike of ₹ 50000 which was taken over by X. (c) Creditors of ₹ 5000 were paid ₹ 4000 in full settlement of accounts. Pass necessary journal entries for the above at the time of dissolution of firm.

Accepted Answer

NA

Question 15

Record necessary journal entries in the following cases (a) Creditors worth ₹ 85000 accepted ₹ 40000 as cash and Investment worth ₹ 43000 in full settlement of their claim. (b) Creditors were ₹ 16000. They accepted Machinery valued at ₹ 18000 in settlement of their claim. (c) Creditors were ₹ 90000. They accepted Building valued at ₹ 120000 and paid cash to the firm ₹ 30000.

Accepted Answer

NA

Question 16

Pass journal entries for the following at the time of dissolution of a firm (a) Sale of Assets – ₹ 50000. (b) Payment of Liabilities – ₹ 10000. (c) A commission of 5% allowed to Mr. X a partner on sale of assets. (d) Realisation expenses amounted to ₹ 15000. The firm had agreed with Amrit a partner to reimburse him up to ₹ 10000. (e) Z an old customer whose account for ₹ 6000 was writte off as bad in the previous year paid 60% of the amount written off. (f) Investment (Book Value ₹ 10000) realised at 150%.

Accepted Answer

NA

Question 17

What journal entries would you pass in the following cases? (a) Expenses of realisation ₹ 1500. (b) Expenses of realisation ₹ 600 but paid by Mohan a partner. (c) Mohan one of the partners of the firm was asked to look into the dissolution of the firm for which he was allowed a commission of ₹ 2000. (d) Motor car of book value ₹ 50000 taken over by creditors of the book value of ₹ 40000 in full settlement.

Accepted Answer

NA

Question 18

Pass journal entries for the following (a) Realisation expenses of ₹ 15000 were to be met by Rahul a partner but were paid by the firm. (b) Ramesh a partner was paid remuneration of ₹ 25000 and he was to meet all expenses. (c) Anuj a partner was paid remuneration of ₹ 20000 and he was to meet all expenses. Firm paid an expense of ₹ 5000.

Accepted Answer

NA

Question 19

Book value of assets ( other than cash and bank) transferred to Realisation Account is ₹ 100000. 50% of the assets are taken over by a partner Atul at a discount of 20%; 40% of the remaining assets are sold at a profit of 30% on cost 5% of the balance being obsolete realised nothing and remaining assets are handed over to a Creditor in full settlement of his claim. You are required to record the journal entries for realisation of assets.

Accepted Answer

NA

Question 20

X Y and Z were partners in a firm sharing profits and losses in the ratio of 3 2 1. Z died on 30th June 2018. The Balance Sheet of the firm as at that 31st March 2018 is as follows The following decisions were taken by the remaining partners (a) A Provision for Doubtful Debts is to be raised at 5% on Debtors. (b) While Machinery to be decreased by 10% Furniture and Stock are to be appreciated by 5% and 10% respectively. (c) Advertising Expenses ₹ 4200 are to be carried forward to the next accounting year and therefore it is to be adjusted through the Revaluation Account. (d) Goodwill of the firm is valued at ₹ 60000. (e) X and Y are to share profits and losses equally in future. (f) Profit for the year ended 31st March 2018 was ₹ 16000 and Z’s share of profit till the date of death is to be determined on the basis of profit for the year ended 31st March 2018. (g) The Fixed Capital Method is to be converted into the Fluctuating Capital Method by transferring the Current Account balances to the respective Partners Capital Accounts. Prepare the Revaluation Account Partners Capital Accounts and prepare C’s Executors’s Account to show that C’s Executors were paid in two half-yearly installments plus interest of 10% p.a. on the unpaid balance. The first installments was paid on 31st December 2018.

Accepted Answer

NA

Question 21

Pass necessary journal entries to record the following unrecorded assets and liabilities in the books of Paras and Priya (a) There was an old furniture in the firm which had been written off completely in the books. This was sold for ₹ 3000. (b) Ashish an old customer whose account for ₹ 1000 was written off as bad in the previous year paid 60% of the amount. (c) Paras agreed to takeover the firm’s goodwill (not recorded in the books of the firm) at a valuation of ₹ 30000. (d) There was an old typewriter which had been written off completely from the books. It was estimated to realise ₹ 400. It was taken by Priya at an estimated price less 25%. (e) There were 100 shares of ₹ 10 each in Star Limited acquired at a cost of ₹ 2000 which had been written-off completely from the books. These shares are valued @ ₹ 6 each and divided among the partners in their profit-sharing ratio.

Accepted Answer

NA

Question 22

X Y and Z are partners in a firm sharing profits and losses in the ratio of 5 3 2. Their Balance Sheet as at 31st March 2018 was as follows Z died on 1st April 2018 X and Y decide to share future profits and losses in ratio of 3 5. It was agreed that (i) Goodwill of the firm be valued 2 years purchase of average of four completed years profits which were 2014-15 – ₹ 100000; 2015-16 – ₹ 80000; 2016-17 – ₹ 82000. (ii) Stock undervalued by ₹ 14000 and machinery overvalued by ₹ 13600. All debtors are good. A debtor whose dues of ₹ 400 were written off as bad debts paid 50% in full settlement. Out of the amount of insurance premium which was debited entirely to Profit and Loss Account ₹ 2200 be carried forward as an unexpired insurance premium. ₹ 1000 included in Sundry Creditors is not likely to arise. A claim of ₹ 1000 on account of Workmen Compensation to be provided for. (iii) Investment be sold for ₹ 8200 and a sum of ₹ 11200 be paid to execution of Z immediately. The balance to be paid in four equal half-yearly installments together with interest @ 8% p.a. at half year rest. Show Reavaluation Account Capital Accounts of Partners and the Balance Sheet of the new firm.

Accepted Answer

NA

Question 23

Pass journal entries for the following transactions at the time of dissolution of the firm (a) Loan of ₹ 10000 advanced by a partner to the firm was refunded. (b) X a partner takes over an unrecorded asset (Typewriter) at ₹ 300. (c) Undistributed balance (Debit) of Profit and Loss Account ₹ 30000. The firm has three partners X Y and Z. (d) Assets of the firm realised ₹ 125000. (e) Y who undertakes to carry out the dissolution proceedings is paid ₹ 2000 for the same Y. (f) Creditors are paid ₹ 28000 in full settlement of their account of ₹ 30000.

Accepted Answer

NA

Question 24

Pass journal entries for the following (a) Realisation expenses amounted to ₹ 10000 were paid by the firm on behalf of Alok a partner with whom it was agreed at ₹ 7500. (b) Realisation expenses amounted to ₹ 5000. It was agreed that the firm will pay ₹ 2000 and balance by Ravinder a partner. (c) Dissolution expenses amounted to ₹ 10000 were paid by Amit a partner on behalf of the firm.

Accepted Answer

NA

Question 25

X Y and Z were partners in a firm sharing profits in the ratio of 2 2 1. On 31st March 2018 their Balance Sheet was as follows ​ Y died on 30th June 2018. The Partnership Deed provided for the following on the death of a partner (i) Goodwill of the business was to be calculated on the basis of 2 times the average profit of the past 5 years. The profits for the years ended 31st March 2018 31st March 2017 31st March 2016 31st March 2015 and 31st March 2014 were ₹ 320000 (Loss) ; ₹ 100000; ₹ 160000; ₹ 220000 and ₹ 440000 respectively. (ii) Y’s share of profit or loss from 1st April 2018 till his death was to be calculated on the basis of the profit or loss for the year ended 31st March 2018. You are required to calculate the following (a) Goodwill of the firm and Y’s share of goodwill at the time of his death. (b) Y’s share in the profit or loss of the firm till the date of his death. (c) Prepare Y’s Capital Account at the time of his death to be presented to his executors.

Accepted Answer

NA

Question 26

X Y and Z were partners in a firm sharing profits and losses in the 5 4 3. Their Balance Sheet on 31st March 2018 was as follows X died on 1st October 2018 and Y and Z decide to share future profits in the ratio of 7 5. It was agreed between his executors and the remaining partners that (i) Goodwill of the firm be valued at 2 years purchase of average of four completed years profit which were (ii) X’s share of profit from the closure of last accounting year till date of death be calculated on the basis of last years profit. (iii) Building undervalued by ₹ 200000; Machinery overvalued by ₹ 150000 and Furniture overvalued by ₹ 46000. (iv) A provision of 5% be created on Debtors for Doubtful Debts. (v) Interest on Capital be provided at 10% p.a. (vi) Half of the net amount payable to X’s executor was paid immediately and the balance was transferred to his loan account which was to be paid later. Prepare Revaluation Account X’s Capital Account and X’s Executors Account as on 1st October 2018.

Accepted Answer

NA

Question 27

The Balance Sheet of X Y and Z as at 31st March 2018 was The profit-sharing ratio was 3 2 1. Z died on 31st July 2018. The Partnership Deed provides that (a) Goodwill is to be calculated on the basis of three years purchase of the five years average profit. The profits were 2017-18 ₹ 24000; 2016-15 ₹ 20000; 2014-15 ₹ 10000 and 2013-14 ₹ 5000. (b) The deceased partner to be given share of profits till the date of death on the basis of profits for the previous year. (c) The Assets have been revalued as Stock – ₹ 10000; Debtors – ₹ 15000; Furniture – ₹ 1500; Plant and Machinery – ₹ 5000; Building – ₹ 35000. A Bill Receivable for ₹ 600 was found worthless. (d) A Sum of ₹ 12233 was paid immediately to Z’s Executors and the balance to be paid in two equal annual installments together with interest @ 10% p.a. on the amount outstanding. Give journal entries and show the Z’s Executors Account till it is finally settled.

Accepted Answer

NA

Question 28

R S and T were partners sharing profits and losses in the ratio of 5 3 2 respectively. On 31st March 2018 Their Balance Sheet stood as T died on 1st August 2018. It was agreed that (a) Goodwill be valued at 2 years purchase of average of last 4 years profits which were 2014-15 ₹ 60000; 2016-17 ₹ 80000 and 2017-18 ₹ 75000. (b) Machinery be valued at ₹ 140000; Patents be valued at ₹ 40000; Leasehold be valued at ₹ 125000 on 1st August 2018. (c) For the purpose of calculating T’s share in the profits of 2018-19 the profits in 2018-19 should be taken to have accrued on the same scale as in 2017-18. (d) A sum of ₹ 21000 to be paid immediately to the Executors of T and the balance to be paid in four equal half-yearly installments together with interest @ 10% p.a. Pass necessary journal entries to record the above transactions and T’s Executors Account.

Accepted Answer

NA

Question 29

A B and C are partners in a firm sharing profits in the proportion of 3 2 1. Their Balance Sheet as at 31st March 2018 stood as follows ​ B died on 30th June 2018 and according to the deed of the said partnership his executors are entitled to be paid as under (a) The capital to his credit at the time of his death and interest thereon @ 10% per annum. (b) His proportionate share of General Reserve. (c) His share of profits from the intervening period will be based on the sales during that period. Sales from 1st April 2018 to 30th June 2018 were as ₹ 1200000. The rate of profit during past three years had been 10% on sales. (d) Goodwill according to his share of profit to be calculated by taking twice the amount of profits of the last three years less 20%. The profit of the previous three years were 1st Year ₹ 82000; 2nd year ₹ 90000; 3rd year ₹ 98000. (e) The investments were sold at par and his executors were paid out in full. Prepare B’s Capital Account and his Executors Account.

Accepted Answer

NA

Question 30

A B and C were partners in a firm sharing profits in the ratio of 5 3 2. On 31st March 2017 their Balance Sheet was as follows​ A died on 1st October 2017. It was agreed among his executors and the remaining partners that (i) Goodwill to be valued at 2 years purchase of the average profit of the previous 4 years which were 2013-14 ₹ 13000; 2014-15 ₹ 12000; 2015-16 ₹ 20000 and 2016-17 ₹ 15000. (ii) Patents be valued at ₹ 8000; Machinery at ₹ 28000; and Building at ₹ 25000. (iii) Profits for the year 2017-18 be taken as having accrued at the same rate as that of the previous year. (iv) Interest on capital be provided @ 10% p.a. (v) Half of the amount due to A to be paid immediately to the executors and the balance transferred to his (Executors) Loan Account. Prepare A’s Capital Account and A’s Executors Account as on 1st October 2017.

Accepted Answer

NA

Question 31

B C and D were partners in a firm sharing profits in the ratio of 5 3 2. On 31st December 2008 their Balance Sheet was as follows B died on 31st March 2009. The Partnership Deed provided for the following on the death of a partner (a) Goodwill of the firm was to be valued at 3 years purchase of the average profit of last 5 years. The profits for the years ended 31st December 2007 31st December 2006 31st December 2005 and 31st December 2004 were ₹ 70000 ; ₹ 60000 and ₹ 40000 respectively. (b) B’s share of profit and loss till the date of his death was to be calculated on the basis of the profit and loss for the year ended 31st December 2008. You are required to calculate the following (i) Goodwill of the firm and B’s share of goodwill at the time of his death. (ii) B’s share in the profit or loss of the firm till the date of his death. (iii) Prepare B’s Capital Account at the time of his death to be presented to his Executors.

Accepted Answer

NA

Question 32

P Q and R were partners in a firm sharing profits in 2 2 1 ratio. The Partnership Deed provided that on the death of a partner his executors will be entitled to the following (a) Interest on Capital @ 12% p.a. (b) Interest on Drawings @ 18% p.a. (c) Salary of ₹ 12000 p.a. (d) Share in the profit of the firm(up to the date of death) on the basis of previous year’s profit. P died on 31st May 2108. His capital was ₹ 80000. He had withdrawn ₹ 15000 and interest on his drawings was calculated as ₹ 1200. Profit of the firm for the previous year ended 31st March 2018 was ₹ 30000. Prepare P’s Capital Account to be rendered to his executors.

Accepted Answer

NA

Question 33

Sunny Honey and Rupesh were partners in a firm. On 31st March 2014 their Balance Sheet was as follows Honey died on 31st December 2014. The Partnership Deed provided that the representative of the deceased partner shall be entitled to (a) Balance in the Capital Account of the deceased partner. (b) Interest on Capital @ 6% per annum up to the date of his death. (c) His share in the undistributed profits or losses as per the Balance Sheet. (d) His share in the profits of the firm till the date of his death calculated on the basis of rate of net profit on sales of the previous year. The rate of net profit on sales of previous year was 20%. Sales of the firm during the year till 31st December 2014 was ₹ 600000. Prepare Honey’s Capital Account to be presented to his executors.

Accepted Answer

NA

Question 34

Akhil Nikhil and Sunil were partners sharing profits and losses equally. Following was their Balance Sheet as at 31st March 2018 Sunil died on 1st August 2018. The Partnership Deed provided that the executor of a deceased partner was entitled to (a) Balance of Partners Capital Account and his share of accumulated reserve. (b) Share of profits from the closure of the last accounting year till the date of death on the basis of the profit of the preceding completed year before death. (c) Share of goodwill calculated on the basis of three times the average profit of the last four years. (d) Interest on deceased partner’s capital @ 6% p.a. (e) ₹ 50000 to be paid to deceased executor immediately and the balance to remain in his Loan Account. Profits and Losses for the preceding years were 2014-15 ₹ 80000 Profit ; 2015-16 ₹ 100000 Loss; 2016-17 ₹ 120000 Profit; 2017-18 ₹ 180000 Profit. Pass necessary journal entries and prepare Sunil’s Capital Account and Sunil’s Executor Account.

Accepted Answer

NA

Question 35

X Y and Z were partners in a firm sharing profits in the ratio of 4 3 1. The firm closes its books on 31st March every year. On 1st February 2018 Y died and it was decided that the new profit-sharing ratio between X and Z will be equal. Partnership Deed provided for the following on the death of a partner (a) His share of goodwill be calculated on the basis of half of the profits credited to his account during the previous four completed years. The firm’s profits for the last four years were

Accepted Answer

NA

Question 36

Babita Chetan and David are partners in a firm sharing profits in the ratio of 2 1 1 respectively. Firm closes its accounts on 31st March every year. Chetan died on 30th September 2012. There was a balance of ₹ 125000 in Chetan’s Capital Account in the beginning of the year. In the event of Death of any partner the Partnership Deed provides for the following (a) Interest on capital will be calculated at the rate of 6% p.a. (b) The executor of deceased partner shall be paid ₹ 24000 for his share of goodwill. (c) His share of Reserve Fund of ₹ 12000 shall be paid to his executor. (d) His share of profit till the date of death will be calculated on the basis of sales. It is also specified that the sales during the year 2011-12 were ₹ 400000. The sales from 1st April 2012 to 30th September 2012 were ₹ 120000. The profit of the firm for the year ending 31st March 2012 was ₹ 200000. Prepare Chetan’s Capital Account to be presented to his executor.

Accepted Answer

NA

Question 37

Kavita Leena and Monica are partners in firm sharing profits in the ratio of 1 1 3 respectively. Their Capital Accounts showed the following balanceson 31st March 2012 Kavita ₹ 70000; Leena ₹ 65000 and Monica ₹ 210000. Firm closes its accounts every year on 31st March. Kavita died on 30th September 2012. In the event of death of any partner the Partnership Deed provides for the following (a) Interest on capital will be calculated at the rate of 6% p.a. (b) The deceased partner’s share in the goodwill of the firm will be calculated on the basis of 2 years purchase of the average profit of last three years. The profits of the firms for the last three years were ₹ 90000; ₹ 100000 and ₹ 110000 respectively. (c) Her share in the Reserve Fund of the firm will be paid. The Reserve Fund of the firm was ₹ 60000 at the time of Kavita’s death. (d) Her share of profit till the date of death will be calculated on the basis of sales. It is also specified that the sales during the year 2011-12 were ₹ 2000000. The sales from 1st April 2012 to 30th September 2012 were ₹ 400000. The profit of the firm for the year ending 31st March 2012 was ₹ 200000. Prepare Kavita’s Capital Account to be presented to his legal representative.

Accepted Answer

NA

Question 38

Virad Vishad and Roma were partners in a firm sharing profits in the ratio of 5 3 2 respectively. On 31st March 2103 their Balance Sheet was as under Virad died on 1st October 2013. It was agreed between his executors and the remaining partners that (i) Goodwill of the firm be valued at 2 years purchase of average profits for the last three years. The average profits were ₹ 150000. (ii) Interest on capital be provided at 10% p.a. (iii) Profits for the 2013-14 be taken as having accrued at the same rate as that of the previous year which was ₹ 150000. Prepare Virad’s Capital Account to be presented to his Executors as on 1st October 2013.

Accepted Answer

NA

Question 39

Iqbal and Kapoor are in partnership sharing profits and losses in 3 2. Kapoor died three months after the date of the last Balance Sheet. According to the Partnership Deed the legal personal representatives of Kapoor are entitled to the following payments (a) His capital as per the last Balance Sheet. (b) Interest on above capital @ 3% p.a. till the date of death. (c) His share of profits till the date of death calculated on the basis of last year’s profits. His drawings are to bear interest at an average rate of 2% on the amount irrespective of the period. The net profits for the last three years after charging insurance premium were ₹ 20000; ₹ 25000 and ₹ 30000 respectively. Kapoor’s capital as per Balance Sheet was ₹ 40000 and his drawings till the date of death were ₹ 5000. Draw Kapoor’s Capital Account to be rendered to his representatives.

Accepted Answer

NA

Question 40

Vikas Gagan and Momita were partners in a firm sharing profits in the ratio of 2 2 1. The firm closes its books on 31st March every year. On 30th September 2014 Momita died. According to the provisions of Partnership Deed the legal representatives of a deceased partner are entitled for the following in the event of hisher death (a) Capital as per the last Balance Sheet. (b) Interest on capital at 6% per annum till the date of her death. (c) Her share of profit to the date of death calculated on the basis of average profit of last four years. (d) Her share of goodwill to be determined on the basis of three years purchase of the average profit of last four years. The profits of last four years were The balance in Momita’s Capital Account on 13st March 2014 was ₹ 60000 and she had withdrawn ₹ 10000 till date of her death. Interest on her drawings was ₹ 300. Prepare Momita’s Capital Account to be presented to her executors.

Accepted Answer

NA

Question 41

X and Y are partners. The Partnership Deed provides inter alia (a) That the Accounts be balanced on 31st March every year. (b) That the profits be divided as X one-half Y one-third and carried to a Reserve one-sixth. (c) That in the event of the death of a partner his Executors be entitled to be paid out (i) The Capital to his credit till the date of death. (ii) His proportion of profits till the date of death based on the average profits of the last three completed years. (iii) By way of Goodwill his proportion of the total profits for the three preceding years. (d) The Profits for three years were 2015-16 ₹ 4200; 2016-17 ₹ 3900; 2017-18 ₹ 4500. Y died on 1st August 2018. Prepare necessary accounts.

Accepted Answer

NA

Question 42

(b) His share of profit in the year of his death was to be computed on the basis of average profit of past two years. Pass necessary journal entries realting to goodwill and profit to be transferred to Y’s Capital Account.

Accepted Answer

NA

Question 43

X Y and Z were partners in a firm sharing profit in 3 2 1 ratio. The firm closes its books on 31st March every year. Y died on 30th June 2018. On Y’s death the goodwill of the firm was valued at ₹60000. Y’s share in the profits of the firm till the time of his death was to be calculated on the basis of previous year’s profit which was ₹ 150000. Pass necessary journal entries for the treatment of goodwill and Y’s share of profit at the time of his death.

Accepted Answer

NA

Question 44

P R and S are in partnership sharing profits 48 38 and 18 respectively. It is provided in the Partnership Deed that on the death of any partner his share of goodwill is to be valued at one-half of the net profit credited to his account during the last four completed years. R died on 1st January 2018. The firm’s profits for the last four years ended 31st December were as 2014 – ₹ 120000; 2015 – ₹ 80000; 2016 – ₹ 40000; 2017 – ₹ 80000. (a) Determine the amount that should be credited to R in respect of his share of Goodwill. (b) Pass journal entry without raising Goodwill Account for its adjustment.

Accepted Answer

NA

Question 45

X Y and Z were partners in a firm. Z died on 31st May 2018. His share of profit from the closure of the last accounting year till the date of death was to be calculated on the basis of the average of three completed ₹ 19000 and ₹ 17000 respectively. Calculate Z’s share of profit till his death and pass necessary journal entry for the same assuming (a) there is no change in profit-sharing ratio of remaining partners and (b) there is change in profit-sharing ratio of remaining partners new ratio being 3 2.

Accepted Answer

NA

Question 46

X Y and Z were partners sharing profits and losses in the ratio of 3 2 1 respectively. Y died on 30th June 2018. The Profit from 1st April 2018 to 30th June 2018 amounted to ₹ 360000. X and Z decided to share the future profits in the ratio of 3 2 respectively with effect from 1st July 2018. Pass the necessary journal entries to record Y’s share of profit up to the date of death.

Accepted Answer

NA

Question 47

Ram Manohar and Joshi were partners in a firm. Joshi died on 31st May 2018. His share of profit from the closure of the last accounting year till the date of death was to be calculated on the basis of the average of three completed years of profits before death. Profits for the years ended 31st March 2016 2017 and 2018 were ₹ 7000; ₹ 8000 and ₹ 9000 respectively. Calculate Joshi’s share of profit till the date of his death and pass necessary journal entry for the same.

Accepted Answer

NA

Question 48

A B and C are partners sharing profits and losses in the ratio of 3 2 1. B died on 30th June 2018. For the year ended 31st March 2019 proportionate profit of 2018 is to be taken into consideration. During the year ended 31st March 2018 bad debts of ₹ 2000 had to be adjusted. The profit for the year ended 31st March 2018 was ₹ 14000 before adjustment of bad debts. Calculate B’s share of profit till the date of his death.

Accepted Answer

NA

Question 49

A B and C were partners sharing profits and losses in the ratio of 2 2 1. C died on 30th June 2018. Profit and Sales for the year ended 31st March 2018 were ₹ 100000 and ₹ 1000000 respectively. Sales during April to June 2018 were ₹ 150000. You are required to calculate share of profit of C up to the date of his death.

Accepted Answer

NA

Question 50

A B and C are partners sharing profits in the ratio of 5 3 2. Their Balance Sheet as on 31st March 2018 is given below C retires on 30th June 2018 and it was mutually agreed that (a) Building be valued at ₹ 2200000. (b) Investments to be valued at ₹ 300000. (c) Stock be taken at ₹ 800000. (d) Goodwill of the firm be valued at two years purchase of the average profit of the past five years. (e) C’s share of profits up to the date of retirement be calculated on the basis of average profit of the preceding three years. The profits of the preceding five years were as under (f) Amount payable to C to be transferred to his Loan Account carrying interest @ 10% p.a. Prepare Revaluation Account Partners Capital Accounts and the Balance Sheet as at 30th June 2018.

Accepted Answer

NA

9901.	Pass necessary journal entries on the dissolution of a firm in the following cases: (a) Dharam, a partner, was appointed to look after the process of dissolution at a remuneration of ₹ 12,000 and he had to bear the dissolution expenses. Dissolution expenses ₹ 11,000 were paid by Dharam. (b) Jay, a partner, was appointed to look after the process of dissolution and was allowed a remuneration of ₹ 15,000. Jay agreed to bear dissolution expenses. Actual dissolution expenses ₹ 16,000 were paid by Vijay, another partner on behalf of Jay. (c) Deepa, a partner, was to look after the process of dissolution and for this work she was allowed a remuneration of ₹ 7,000. Deepa agreed to bear dissolution expenses. Actual dissolution expenses ₹ 6,000 were paid from the firm’s bank account. (d) Dev, a partner, agreed to do the work of dissolution for ₹ 7,5000. He took away stock of the same amount as his commission. The stock had already been transferred to Realisation Account. (e) Jeev, a partner, agreed to do the work of dissolution for which he was allowed a commission of ₹ 10,000. He agreed to bear the dissolution expenses. Actual dissolution expenses paid by Jeev were ₹ 12,000. These expenses were paid by Jeev by drawing cash from the firm. (f) A debtor of ₹ 8,000 already transferred to Realisation Account agreed to pay the realisation expenses of ₹ 7,800 in full settlement of his account.
Answer» iwwhwbExplanation:7173%£whwu iajqb io91 qjqi8 18÷6_2,25€2877: ruwwh8q1

9902.	Bale and Yale are equal partners of a firm. They decide to dissolve their partnership on 31st March,2018 at which date their Balance Sheet stood as: (a) The assets realised were: Stock ₹ 22,000; Debtors ₹ 7,500; Machinery ₹ 16,000; Building ₹ 35,00. (b) Yale took over the Furniture at ₹ 9,000. (c) Bale agreed to accept ₹ 2,500 in full settlement of his Loan Account. (d) Dissolution Expenses amounted to ₹ 2,500. Prepare the: (i) Realisation Account (ii) Capital Accounts of Partners (iii) Bale’s Loan Account (iv) Bank Account.
Answer» COME of politics of social divisionsdepends on how the political leaders RAISE thedemands of any community". EXPLAIN THESTATEMENT

9903.	A, B and C were equal partners. On 31st March, 2018, their Balance Sheet stood as: The firm was dissolved on the above date on the following terms: (a) For the purpose of dissolution, Investments were valued at ₹ 18,000 and A took over the Investments at this value. (b) Fixed Assets realised ₹ 29,700 whereas Stock and Debtors realised ₹ 80,000. (c) Expenses of realisation amounted to ₹ 1,300. (d) Creditors allowed a discount of ₹ 800. (e) One Bill receivable for ₹ 1,500 under discount was dishonoured as the acceptor had become insolvent and was unable to pay anything and hence the bill had to be met by the firm. Prepare Realisation Account, Partner’s Capital Accounts and Cash Account showing how the accounts would finally be settled among the partners.
Answer» lisation Account, Partner’s Capital Accounts and Cash Account are calculated and prepared below: Explanation: REALISATION ACCOUNT: Particulars (Dr.)To Stock A/c - Rs. 20,100To Debtors A/c - Rs. 62,600To Investments A/c - Rs. 16,000To Furniture A/c - Rs. 6,500To Building A/c - Rs. 23,500To Cash A/c Expenses - Rs. 1,300Creditors - Rs. 49,600Bills - Rs. 1,500Total = Rs. 52,400Adding all, we get,= 20100 + 62600 + 16000 + 6500 + 23500 + 52400= Rs. 1,81,100Particulars (CR.)By CREDITORS A/c - Rs. 50,400By A's Capital A/c (Investments) - Rs. 18,000By Cash A/c: Furniture and Building - Rs. 29,700Stock and Debtors - Rs. 80,000Total = Rs. 1,09,700By Loss TRANSFERRED to: A's Capital A/c - Rs. 1000B's Capital A/c - Rs. 1000C's Capital A/c - Rs. 1000Total = Rs. 3000Adding all, we get,= 50400 + 18000 + 109700 + 3000= Rs. 1,81,100 As per the Parner's Capital Accounts, The Dr. and the Cr. of P, Q and R will be Rs. 34,000, Rs. 29,000 and Rs. 19,000 respectively. The cash account are calculated and prepared below:

9904.	Ramesh and Umesh were partners in a firm sharing profits in the ratio of their capitals. On 31st March, 2013, their Balance Sheet was as follows : On the above date the firm was dissolved. (a) Ramesh took over 50% of stock at ₹ 10,000 less then the book value. The remaining stock was sold at a loss of ₹ 15,000. Debtors were realised at a discount of 5%. (b) Furniture was taken over by Umesh for ₹ 50,000 and machinery was sold for ₹ 4,50,000. (c) Creditors were paid in full. (d) There was an unrecorded bill for repairs for ₹ 1,60,000 which was settled at ₹ 1,40,000. Prepare Realisation Account.
Answer» lisation ACCOUNT are prepared below:ANSWER:Particulars (Dr.)To Sundry Assets A/c DEBTORS - RS. 2,40,000Stock - Rs. 1,30,000Furniture - Rs. 2,00,000Machinery - Rs. 9,30,000Total = Rs. 15,00,000To CASH A/c (Liabilities) Creditors - Rs. 1,70,000Outstanding Bill - Rs. 1,40,000Total = Rs. 3,10,000Adding Sundry assets A/c and Cash A/c = Rs. 15,00,000 + Rs. 3,10,000 = Rs. 18,10,000Particulars (Cr.)By Creditors A/c - Rs.1,70,000By Ramesh's Current A/c (stock)-Rs.55,000By Cash A/c (Assets) Stock -Rs. 50,000Machinery - Rs. 4,50,000Debtors - Rs. 2,28,000Total = Rs. 7,28,000By Umesh's Current A/c (Furniture) = Rs. 50,000By Realistion Loss: Ramesh's Current A/c - Rs. 5,64,900Umesh's Current A/c - Rs. 2,42,100Total = Rs. 8,07,000Adding Creditors A/c, Ramesh's Current A/c (stock), Cash A/c, Umesh's Current A/c (Furniture) and the Realistion Loss, we get= Rs.1,70,000 + Rs.55,000 + Rs. 7,28,000 + Rs. 50,000 + Rs. 8,07,000 = Rs. 18,10,000.

9905.	Vinod, Vijay and Venkat are partners sharing profits and losses in the ratio of 3 : 2 : 1. They decided to dissolve their firm on 31st March, 2018 the date on which their Balance Sheet stood as: The following additional information is given: (a) The Investments are taken over by Vinod for ₹ 5,000 (b) (c) Expenses on realisation amounted to ₹ 2,000. Close the books of the firm giving relevant Ledger Accounts.
Answer» come of politics of social divisionsdepends on how the political leaders raise thedemands of any COMMUNITY". Explain THESTATEMENT

9906.	Shilpa, Meena and Nanda decided to dissolve their partnership on 31st March, 2018. Their profit-sharing ratio was 3 : 2 : 1 and their Balance Sheet was as under: It is agreed as follows: The stock of value of ₹ 41,660 are taken over by Shilpa for ₹ 35,000 and she agreed to discharge bank loan. The remaining stock was sold at ₹ 14,000 and debtors amounting to ₹ 10,000 realised ₹ 8,000. Land is sold for ₹ 1,10,000. The remaining debtors realised 50% at their book value . Cost of realisation amounted to ₹ 1,200. There was a typewriter not recorded in the books worth of ₹ 6,000 which were taken over by one of the Creditors at this value. Prepare Realisation Account, Partners Capital Accounts, and Cash Account to close the books of the firm.
Answer» lisation Account, Partners Capital Accounts, and Cash Account to close the books of the firm are calculated and prepared below:Explanation:REALISATION ACCOUNT:PARTICULARS (Dr.)Land - RS. 81,000Stock - Rs. 56,760Debtors - Rs. 18,600Shilpa's Capital A/c - Rs. 20,000Cash: Creditors - Rs. 31000Realisation Expenses - Rs. 1,200 Total = Rs. 32,200Realisation Profit Shilpa's Capital A/c - Rs. 10,470Meena's Capital A/c - Rs. 6,980Nanda's Capital A/c - Rs. 3,490Total = Rs. 20,940Adding all we get, = 81000 + 56760 + 18600 + 20000 + 32200 + 20940 = Rs. 2,29,500Particulars (Cr.)Bank Loan - Rs. 20,000Creditors - Rs. 37,000Provision for DOUBTFUL debts - Rs. 1,200Shilpa's Capital A/c (STOCK) - Rs. 35,000Cash Stock - Rs. 14,000Debtors - Rs. 12,300Land - Rs. 1,10,000Total = 1,36,300Adding all we get,= 20000 + 37000 + 1200 + 35000 + 136300= Rs. 2,29,500As PER the Partners Capital Accounts,The Dr. and Cr. of Shilpa, Meena and Nanda are Rs. 1,16,470, Rs. 50,980 and Rs. 23,000 respectively.The cash account is calculated and prepared below:

9907.	Balance Sheet of a firm as at 31st March, 2018 , when it was decided to dissolve the same was: ₹19,500 were realised from all assets except Cash at Bank. The cost of winding up came to ₹ 440. X and Y shared profits in the ratio of 2 : 1 respectively. Prepare Realisation Account and Capital Accounts of Partners.
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9908.	What journal entries would be passed for discharge of following unrecorded liabilities on the dissolution of a firm of partners A and B: (a) There was a contingent liability in respect of bills discounted but not matured of ₹ 18,500. An acceptor of one bill of ₹ 2,500 became insolvent and fifty paise in a rupee was recovered. The liability of the firm on account of this bill discounted and dishonoured has not so far been recorded. (b) There was a contingent liability in respect of a claim fro damages for ₹ 75,000 such liability was settled for ₹ 50,000 and paid by the partner A. (c) Firm will have to pay ₹ 10,000 as compensation to an injured employee, which was a contingent liability not accepted by the firm. (d) ₹ 5,000 for damages claimed by a customer has been disputed by the firm. It was settled at 70% by a compromise between the customer and the firm.
Answer» As per the journal,(A) An amount of RS. 1250 has been DEBITED from the BANK A/c and it has been credited to Realisation account.This is being the amount which is RECEIVED.(B) An amount of Rs. 2,500 has been debited from the realisation account and it has been credited to the Bank A/c.This is being the amount when the liabilities discharged.(C) An amount of Rs. 50,000 has been debited from the realisation account and it has been credited to the A's capital A/cThis is being the amount obtained when the liabilities are paid by a partner.(D) An amount of Rs. 10,000 has been debited from the realisation account and it has been credited to the Bank A/c.This is being the amount obtained when the liabilities discharged.(E) An amount of Rs. 3,500 has been debited from the realisation account and it has been credited to the Bank A/c.This is being the amount obtained when the liabilities discharged.

9909.	Pass the journal entries for the following transactions on the dissolution of the firm of P and Q after various assets (other than cash) and outside liabilities have been transferred to Realisation Account: (a) Stock ₹ 2,00,000. P took over 50% of stock at a discount of 10%. Remaining stock was sold at a profit of 25% on cost. (b) Debtors ₹ 2,25,000. Provision for Doubtful Debts ₹ 25,000; ₹ 20,000 of the book debts proved bad. (c) Land and Building (Book value ₹ 12,50,000) sold for ₹ 15,00,000 through a broker who changed 2% commission. (d) Machinery (Book value ₹ 6,00,000) was handed over to a creditor at a discount of 10%. (e) Investment (Book value ₹ 60,000) realised at 125%. (f) Goodwill of ₹ 75,000 and prepaid fire insurance of ₹ 10,000. (g) There was an old furniture in the firm which had been written off completely in the books. This was sold for ₹ 10,000. (h) Z an old customer whose account for ₹ 20,000 was written off as bad in the previous year paid 60%. (i) P undertook to pay Mrs. P’s loan of ₹ 50,000. (j) Trade creditors ₹ 1,60,000. Half of the trade creditors accepted Plant and Machinery at an agreed valuation of ₹ 54,000 and cash in full settlement of their claims after allowing a discount of ₹ 16,000. Remaining trade creditors were paid 90% in final settlement.
Answer» As per the journal,(A) An amount of Rs. 90,000 and Rs. 1,25,000 has been debited from the P's capital A/c and bank account and it has been credited to Realisation account.This is being the amount when stock REALISED(B) An amount of Rs. 2,05,000 has been debited from the Bank account and it has been credited to the realisation A/c.This is being the amount when the debtors realised(C) An amount of Rs. 14,70,000 has been debited from the bank account and it has been credited to the realisation A/cThis is being the amount when the LAND and the buildings realised.(D) No entry(E) An amount of Rs. 75,000 has been debited from the bank account and it has been credited to the realisation A/cThis is being the amount when the investment realised(F) No entry(G) An amount of Rs. 10,000 has been debited from the bank account and it has been credited to the realisation A/cThis is being the amount when the unrecorded furniture realised.(H) An amount of Rs. 12,000 has been debited from the bank account and it has been credited to the realisation A/cThis is being the amount when the bad debts recovered.(I) An amount of Rs. 50,000 has been debited from the realisation account and it has been credited to the P's capital A/cThis is being the amount when the wife's loan paid by PARTNER(J) An amount of Rs. 82,000 has been debited from the realisation account and it has been credited to the bank A/cThis is being the amount the CREDITORS paid.

9910.	Lal and Pal were partners in a firm sharing profits in the ratio of 3 : 7. On 1st April, 2015 their firm was dissolved. After transferring assets (other than cash and outsider’s liabilities to Realisation Account, you are given the following information : (a) A creditor of ₹ 3,60,000 accepted machinery valued at ₹ 5,00,000 and paid to the firm ₹ 1,40,000. (b) A second creditor for ₹ 50,000 accepted stock ₹ 45,000 in full settlement of his claim. (c) A third creditor amounting to ₹ 90,000 accepted ₹ 45,000 in cash and investments worth ₹ 43,000 in full settlement of his claim. (d) Loss on dissolution was ₹ 15,000. Pass necessary journal entries for the above transactions in the books of firm assuming that all payments were made by cheque.
Answer» TE YOUR ANSWER IS(d) Loss on dissolution was ₹ 15,000.Pass necessary journal entries for the above TRANSACTIONS in the books of firm assuming that all payments were made by cheque.HOPE THIS HELPSPLEASEMARK AS BRAINLIEST ❤️❤️

9911.	Rohit, Kunal and Sarthak are partners in a firm. They decided to dissolve their firm. Pass necessary journal entries for the following after various assets (other than Cash and Bank) and the third party liability have been transferred to Realisation Account : (a) Kunal agreed to pay off his wife’s loan of ₹ 6,000. (b) Total Creditors of the firm were ₹ 40,000. Creditors worth ₹ 10,000 were given a piece of furniture costing ₹ 8,000 in full and final settlement. Remaining Creditors allowed a discount of 10%. (c) Rohit had given a loan of ₹ 70,000 to the firm which was duly paid. (d) A machine which was not recorded in the books was taken over by Kunal at ₹ 3,000, whereas its expected value was ₹ 5,000. (e) The firm had a debit balance of ₹ 15,000 in the Profit and Loss Account on the date of dissolution. (f) Sarthak paid the realisation expenses of ₹ 16,000 out of his private funds, who was to get a remuneration of ₹ 15,000 for completing dissolution process and was responsible to bear all the realisation expenses.
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9912.	Aman and Harsh were partners in a firm. They decided to dissolve their firm. Pass necessary journal entries for the following after various assets (other than cash and bank) and third party liabilities have been transferred to Realisation Account: (a) There was furniture worth ₹ 50,000. Aman took over 50% of the furniture at 10% discount and the remaining furniture was sold at 30% profit on book value. (b) Profit and Loss Account was showing a credit balance of ₹ 15,000 on the date of dissolution. (c) Harsh’s loan of ₹ 6,000 was discharged at ₹ 6,200. (d) The firm paid realisation expenses amounting to ₹ 5,000 on behalf of Harsh who had to bear these expenses. (e) There was a bill for 1,200 under discount. The bill was received from Soham who proved insolvent and a first and final dividend of 25% was received from his estate. (f) Creditors, to whom the firm owed ₹ 6,000, accepted stock of ₹ 5,000 at a discount of 5% and the balance in cash.
Answer» COME of POLITICS of social divisionsdepends on how the political leaders raise thedemands of any community". Explain THESTATEMENT

9913.	Pass necessary journal entries for the following transactions on the dissolution of the firm P and Q after the various assets (other than cash) and outside liabilities have been transferred to Realisation Account: (a) Bank Loan ₹ 12,000 was paid. (b) Stock worth ₹ 16,000 was taken over by partner Q. (c) Partner P paid a creditor ₹ 4,000. (d) An asset not appearing in the books of accounts realised ₹ 1,200. (e) Expenses of realisation ₹ 2,000 were paid by partner Q. (f) Profit on realisation ₹ 36,000 was distributed between P and Q in 5 : 4 ratio.
Answer» MRAK IT AS A BRAINLIEST ANSWERI TRYED A LOT FOR THESE ANSWERI HOPE IT WILL HELP YOUANSWER :-)Pass necessary Journal entries for the following transactions on the dissolution of the FIRM of P and Q after the various assets (other than CASH ) and outside liabilities have been transferred to REALISATION Account : (a) Bank Loan ₹ 12,000 was paid . (b) Stock worth ₹ 16,000 was TAKEN over by partner Q . (c) Partner P paid a creditor ₹ 4,000 . (d) An asset not appearing in the books of accounts realised ₹ 1,200 . (e) Expenses of realisation of ₹ 2,000 were paid by partner Q . (f) Profit on realisation ₹ 36,000 was distributed between P and Q inPass necessary Journal entries for the following transactions on the dissolution of the firm of P and Q after the various assets (other than cash ) and outside liabilities have been transferred to Realisation Account : (a) Bank Loan ₹ 12,000 was paid . (b) Stock worth ₹ 16,000 was taken over by partner Q . (c) Partner P paid a creditor ₹ 4,000 . (d) An asset not appearing in the books of accounts realised ₹ 1,200 . (e) Expenses of realisation of ₹ 2,000 were paid by partner Q . (f) Profit on realisation ₹ 36,000 was distributed between P and Q inratio .

9914.	X, Y and Z are partners in a firm sharing profits in the ratio of 3 : 2 : 1 respectively. The firm was dissolved on 1st March, 2013. After transferring assets (other than cash) and third party liabilities to the Realisation Account you are provided with the following information: (a) There was a balance of ₹ 18,000 in the firm’s Profit and Loss Account. (b) There was an unrecorded bike of ₹ 50,000 which was taken over by X. (c) Creditors of ₹ 5,000 were paid ₹ 4,000 in full settlement of accounts. Pass necessary journal entries for the above at the time of dissolution of firm.
Answer» TE YOUR ANSWER ISa) There was a balance of ₹ 18,000 in the firm’s Profit and Loss ACCOUNT.(b) There was an unrecorded bike of ₹ 50,000 which was taken over by X.(C) Creditors of ₹ 5,000HOPE THIS HELPS ❤️PLEASE MARK AS BRAINLIEST ❤️❤️FOLLOW ME

9915.	Record necessary journal entries in the following cases: (a) Creditors worth ₹ 85,000 accepted ₹ 40,000 as cash and Investment worth ₹ 43,000, in full settlement of their claim. (b) Creditors were ₹ 16,000. They accepted Machinery valued at ₹ 18,000 in settlement of their claim. (c) Creditors were ₹ 90,000. They accepted Building valued at ₹ 1,20,000 and paid cash to the firm ₹ 30,000.
Answer» COME of POLITICS of social divisionsdepends on how the political LEADERS raise thedemands of any COMMUNITY". EXPLAIN thestatement

9916.	Pass journal entries for the following at the time of dissolution of a firm: (a) Sale of Assets – ₹ 50,000. (b) Payment of Liabilities – ₹ 10,000. (c) A commission of 5% allowed to Mr. X, a partner, on sale of assets. (d) Realisation expenses amounted to ₹ 15,000. The firm had agreed with Amrit, a partner to reimburse him up to ₹ 10,000. (e) Z, an old customer whose account for ₹ 6,000 was writte off as bad in the previous year paid 60% of the amount written off. (f) Investment (Book Value ₹ 10,000) realised at 150%.
Answer» A legend is a genre of folklore that CONSISTS of a NARRATIVE featuring human actions PERCEIVED or believed both by teller and listeners to have taken place within human history. Narratives in this genre may demonstrate human values, and possess CERTAIN qualities that give the TALE verisimilitude

9917.	What journal entries would you pass in the following cases? (a) Expenses of realisation ₹ 1,500. (b) Expenses of realisation ₹ 600 but paid by Mohan, a partner. (c) Mohan, one of the partners of the firm was asked to look into the dissolution of the firm for which he was allowed a commission of ₹ 2,000. (d) Motor car of book value ₹ 50,000 taken over by creditors of the book value of ₹ 40,000 in full settlement.
Answer» A legend is a genre of folklore that consists of a NARRATIVE featuring human actions perceived or believed both by TELLER and listeners to have taken place within human HISTORY. Narratives in this genre may demonstrate human values, and possess CERTAIN qualities that give the tale verisimilitude

9918.	Pass journal entries for the following: (a) Realisation expenses of ₹ 15,000 were to be met by Rahul, a partner but were paid by the firm. (b) Ramesh, a partner was paid remuneration of ₹ 25,000 and he was to meet all expenses. (c) Anuj, a partner, was paid remuneration of ₹ 20,000 and he was to meet all expenses. Firm paid an expense of ₹ 5,000.
Answer» l Capital A/C ...dr. 15000 To Bank A/C 15000 b) REALISATION A/C ...dr. 25000 To Ramesh Capital A/C 25000 c) i) Realisation A/C ...dr. 20000 To Anuj Capital A/C 20000 ii) Anuj Capital A/C ...dr. 5000 To Bank A/C 5000 Hope you UNDERSTAND..MARK me as Brainliest

9919.	Book value of assets ( other than cash and bank) transferred to Realisation Account is ₹ 1,00,000. 50% of the assets are taken over by a partner Atul, at a discount of 20%; 40% of the remaining assets are sold at a profit of 30% on cost 5% of the balance being obsolete realised nothing and remaining assets are handed over to a Creditor in full settlement of his claim. You are required to record the journal entries for realisation of assets.
Answer» come of POLITICS of social divisionsdepends on how the political LEADERS RAISE thedemands of any community". Explain THESTATEMENT

9920.	X, Y and Z were partners in a firm sharing profits and losses in the ratio of 3 : 2 : 1. Z died on 30th June, 2018. The Balance Sheet of the firm as at that 31st March, 2018 is as follows: The following decisions were taken by the remaining partners: (a) A Provision for Doubtful Debts is to be raised at 5% on Debtors. (b) While Machinery to be decreased by 10%, Furniture and Stock are to be appreciated by 5% and 10% respectively. (c) Advertising Expenses ₹ 4,200 are to be carried forward to the next accounting year and therefore, it is to be adjusted through the Revaluation Account. (d) Goodwill of the firm is valued at ₹ 60,000. (e) X and Y are to share profits and losses equally in future. (f) Profit for the year ended 31st March, 2018 was ₹ 16,000 and Z’s share of profit till the date of death is to be determined on the basis of profit for the year ended 31st March, 2018. (g) The Fixed Capital Method is to be converted into the Fluctuating Capital Method by transferring the Current Account balances to the respective Partners Capital Accounts. Prepare the Revaluation Account, Partners Capital Accounts and prepare C’s Executors’s Account to show that C’s Executors were paid in two half-yearly installments plus interest of 10% p.a. on the unpaid balance. The first installments was paid on 31st December, 2018.
Answer» TION:Working Notes:1. CALCULATION of Profit and Loss Suspense P&L Suspense = 2. Calculation of GAINING Ratio and Share of Goodwill Gaining Ratio = New Ratio - Old RatioGaining ratio only 'Y' = Z's share Goodwill = Z's share of goodwill is to be distributed only Y Gaining Ratio.

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(b) His share of profit in the year of his death was to be computed on the basis of average profit of past two years. Pass necessary journal entries realting to goodwill and profit to be transferred to Y’s Capital Account.

9921.	Pass necessary journal entries to record the following unrecorded assets and liabilities in the books of Paras and Priya: (a) There was an old furniture in the firm which had been written off completely in the books. This was sold for ₹ 3,000. (b) Ashish, an old customer whose account for ₹ 1,000 was written off as bad in the previous year paid 60% of the amount. (c) Paras agreed to takeover the firm’s goodwill (not recorded in the books of the firm) at a valuation of ₹ 30,000. (d) There was an old typewriter which had been written off completely from the books. It was estimated to realise ₹ 400. It was taken by Priya at an estimated price less 25%. (e) There were 100 shares of ₹ 10 each in Star Limited acquired at a cost of ₹ 2,000 which had been written-off completely from the books. These shares are valued @ ₹ 6 each and divided among the partners in their profit-sharing ratio.
Answer» Pass necessary Journal entries for the FOLLOWING transactions on the dissolution of the firm of P and Q after the VARIOUS ASSETS (other than cash ) and outside LIABILITIES have been transferred to Realisation Account : (a) Bank Loan ₹ 12,000 was paid . (B) Stock worth ₹ 16,000 was taken over by partner Q . (c) Partner P paid a creditor ₹ 4,000 . (d) An asset not appearing in the books of accounts realised ₹ 1,200 . (e) Expenses of realisation of ₹ 2,000 were paid by partner Q . (f) Profit on realisation ₹ 36,000 was distributed between P and Q inratio .

9922.	X, Y and Z are partners in a firm sharing profits and losses in the ratio of 5 : 3 : 2. Their Balance Sheet as at 31st March, 2018 was as follows: Z died on 1st April, 2018, X and Y decide to share future profits and losses in ratio of 3 : 5. It was agreed that: (i) Goodwill of the firm be valued 2 years purchase of average of four completed years profits which were : 2014-15 – ₹ 1,00,000; 2015-16 – ₹ 80,000; 2016-17 – ₹ 82,000. (ii) Stock undervalued by ₹ 14,000 and machinery overvalued by ₹ 13,600. All debtors are good. A debtor whose dues of ₹ 400 were written off as bad debts paid 50% in full settlement. Out of the amount of insurance premium which was debited entirely to Profit and Loss Account ₹ 2,200 be carried forward as an unexpired insurance premium. ₹ 1,000 included in Sundry Creditors is not likely to arise. A claim of ₹ 1,000 on account of Workmen Compensation to be provided for. (iii) Investment be sold for ₹ 8,200 and a sum of ₹ 11,200 be paid to execution of Z immediately. The balance to be paid in four equal half-yearly installments together with interest @ 8% p.a. at half year rest. Show Reavaluation Account, Capital Accounts of Partners and the Balance Sheet of the new firm.
Answer» tion:Working Notes:1. Calculation of GAINING Ratio and Share of GOODWILL Gaining Ratio = New Ratio - Old Ratio2. Calculation of Goodwill AVERAGE PROFIT =

9923.	Pass journal entries for the following transactions at the time of dissolution of the firm: (a) Loan of ₹ 10,000 advanced by a partner to the firm was refunded. (b) X, a partner, takes over an unrecorded asset (Typewriter) at ₹ 300. (c) Undistributed balance (Debit) of Profit and Loss Account ₹ 30,000. The firm has three partners X, Y and Z. (d) Assets of the firm realised ₹ 1,25,000. (e) Y who undertakes to carry out the dissolution proceedings is paid ₹ 2,000 for the same Y. (f) Creditors are paid ₹ 28,000 in full settlement of their account of ₹ 30,000.
Answer» TE YOUR ANSWER ISpartners X, Y and Z.(d) ASSETS of the FIRM REALISED ₹ 1,25,000.(E) Y who undertakes to carry out the dissolution proceedings is paidHOPE THIS HELPS ❤️PLEASE MARK AS BRAINLIEST ❤️❤️FOLLOW ME

9924.	Pass journal entries for the following: (a) Realisation expenses amounted to ₹ 10,000 were paid by the firm on behalf of Alok, a partner, with whom it was agreed at ₹ 7,500. (b) Realisation expenses amounted to ₹ 5,000. It was agreed that the firm will pay ₹ 2,000 and balance by Ravinder, a partner. (c) Dissolution expenses amounted to ₹ 10,000 were paid by Amit, a partner, on behalf of the firm.
Answer» come of politics of social divisionsdepends on how the POLITICAL LEADERS raise thedemands of any COMMUNITY". EXPLAIN THESTATEMENT

9925.	X, Y and Z were partners in a firm sharing profits in the ratio of 2 : 2 : 1. On 31st March, 2018 their Balance Sheet was as follows: Y died on 30th June, 2018. The Partnership Deed provided for the following on the death of a partner: (i) Goodwill of the business was to be calculated on the basis of 2 times the average profit of the past 5 years. The profits for the years ended 31st March, 2018, 31st March, 2017, 31st March, 2016, 31st March, 2015 and 31st March, 2014 were ₹ 3,20,000 (Loss) ; ₹ 1,00,000; ₹ 1,60,000; ₹ 2,20,000 and ₹ 4,40,000 respectively. (ii) Y’s share of profit or loss from 1st April, 2018 till his death was to be calculated on the basis of the profit or loss for the year ended 31st March, 2018. You are required to calculate the following: (a) Goodwill of the firm and Y’s share of goodwill at the time of his death. (b) Y’s share in the profit or loss of the firm till the date of his death. (c) Prepare Y’s Capital Account at the time of his death to be presented to his executors.
Answer» tion:A legend is a genre of FOLKLORE that consists of a narrative FEATURING human ACTIONS perceived or believed both by teller and listeners to have taken place within human history. Narratives in this genre may DEMONSTRATE human values, and possess certain qualities that GIVE the tale verisimilitude

9926.	X, Y and Z were partners in a firm sharing profits and losses in the 5 : 4 : 3. Their Balance Sheet on 31st March, 2018 was as follows: X died on 1st October, 2018 and Y and Z decide to share future profits in the ratio of 7 : 5. It was agreed between his executors and the remaining partners that: (i) Goodwill of the firm be valued at 2 years purchase of average of four completed years profit which were: (ii) X’s share of profit from the closure of last accounting year till date of death be calculated on the basis of last years profit. (iii) Building undervalued by ₹ 2,00,000; Machinery overvalued by ₹ 1,50,000 and Furniture overvalued by ₹ 46,000. (iv) A provision of 5% be created on Debtors for Doubtful Debts. (v) Interest on Capital be provided at 10% p.a. (vi) Half of the net amount payable to X’s executor was paid immediately and the balance was transferred to his loan account which was to be paid later. Prepare Revaluation Account, X’s Capital Account and X’s Executors Account as on 1st October, 2018.
Answer» TION:Working Notes:1. Calculation of Share in General RESERVE General Reserve = 2. Calculation of Interest on Capital Interest = 3. Calculation of Profit and Loss Suspense Profit and Loss Suspense A/c = 4. Calculation of Share in GOODWILL Gaining Ratio = New Ratio - Old RatioX's share of goodwill is to be DISTRIBUTED between Y and Z in their 3: 2 (Gaining Ratio)

9927.	The Balance Sheet of X, Y and Z as at 31st March, 2018 was: The profit-sharing ratio was 3 : 2 : 1. Z died on 31st July, 2018. The Partnership Deed provides that: (a) Goodwill is to be calculated on the basis of three years purchase of the five years average profit. The profits were : 2017-18: ₹ 24,000; 2016-15: ₹ 20,000; 2014-15: ₹ 10,000 and 2013-14: ₹ 5,000. (b) The deceased partner to be given share of profits till the date of death on the basis of profits for the previous year. (c) The Assets have been revalued as: Stock – ₹ 10,000; Debtors – ₹ 15,000; Furniture – ₹ 1,500; Plant and Machinery – ₹ 5,000; Building – ₹ 35,000. A Bill Receivable for ₹ 600 was found worthless. (d) A Sum of ₹ 12,233 was paid immediately to Z’s Executors and the balance to be paid in two equal annual installments together with interest @ 10% p.a. on the amount outstanding. Give journal entries and show the Z’s Executors Account till it is finally settled.
Answer» tion:1. Calculation of Goodwill Goodwill = ∴ Average Profit = 2. Adjustment of GoodwillZ died.Gaining Ratio Z's share of goodwill is to be DISTRIBUTED between X and Y in their 3 : 2 (Gaining ratio)3. Calculation of Z's Share of Profit Profit for past year = Rs 24, 000.

9928.	R, S and T were partners sharing profits and losses in the ratio of 5 : 3 : 2 respectively. On 31st March, 2018, Their Balance Sheet stood as: T died on 1st August, 2018. It was agreed that: (a) Goodwill be valued at 2 years purchase of average of last 4 years profits which were: 2014-15: ₹ 60,000; 2016-17: ₹ 80,000 and 2017-18: ₹ 75,000. (b) Machinery be valued at ₹ 1,40,000; Patents be valued at ₹ 40,000; Leasehold be valued at ₹ 1,25,000 on 1st August, 2018. (c) For the purpose of calculating T’s share in the profits of 2018-19, the profits in 2018-19 should be taken to have accrued on the same scale as in 2017-18. (d) A sum of ₹ 21,000 to be paid immediately to the Executors of T and the balance to be paid in four equal half-yearly installments together with interest @ 10% p.a. Pass necessary journal entries to record the above transactions and T’s Executors Account.
Answer» TION:WORKING Notes:1. Calculation of Goodwill GoodwillGoodwill = 2. Adjustment of Goodwill R : S ; T = 5 : 3 : 2 (OLD Ratio) T's deathGaining Ratio ( R and S ) = 5 : 3.T's share of goodwill is to be distributed between R and S in their =5: 3 (GAINING Ratio)3. Calculation of T's Share of Profit Profit for YEAR(2011 - 12) = Rs 75,000

9929.	A, B and C are partners in a firm sharing profits in the proportion of 3 : 2 : 1. Their Balance Sheet as at 31st March, 2018 stood as follows: B died on 30th June, 2018 and according to the deed of the said partnership his executors are entitled to be paid as under: (a) The capital to his credit at the time of his death and interest thereon @ 10% per annum. (b) His proportionate share of General Reserve. (c) His share of profits from the intervening period will be based on the sales during that period. Sales from 1st April, 2018 to 30th June, 2018 were as ₹ 12,00,000. The rate of profit during past three years had been 10% on sales. (d) Goodwill according to his share of profit to be calculated by taking twice the amount of profits of the last three years less 20%. The profit of the previous three years were: 1st Year: ₹ 82,000; 2nd year: ₹ 90,000; 3rd year: ₹ 98,000. (e) The investments were sold at par and his executors were paid out in full. Prepare B’s Capital Account and his Executors Account.
Answer» TION:Working Notes:1. Calculation of Interest on Capital OPENING Capital = Interest on Capital = 2. Calculation of PROFIT Share up-to-deathB's Profit = PREVIOUS year profit = 98, 000.Rate of profit sale = 100 = Previous Year's Sale = Previous Year's Sale = 98, 000B's Profit (up - to-death) = B's Profit = 40, 0003. Calculation of goodwillAverage Profits (less than 20%) = 72,000.

9930.	A, B and C were partners in a firm sharing profits in the ratio of 5 : 3 : 2. On 31st March, 2017, their Balance Sheet was as follows: A died on 1st October, 2017. It was agreed among his executors and the remaining partners that: (i) Goodwill to be valued at 2 years purchase of the average profit of the previous 4 years, which were 2013-14: ₹ 13,000; 2014-15: ₹ 12,000; 2015-16: ₹ 20,000 and 2016-17: ₹ 15,000. (ii) Patents be valued at ₹ 8,000; Machinery at ₹ 28,000; and Building at ₹ 25,000. (iii) Profits for the year 2017-18 be taken as having accrued at the same rate as that of the previous year. (iv) Interest on capital be provided @ 10% p.a. (v) Half of the amount due to A to be paid immediately to the executors and the balance transferred to his (Executors) Loan Account. Prepare A’s Capital Account and A’s Executors Account as on 1st October, 2017.
Answer» tion:Working Notes:1. Calculation of Reserve ReserveReserve = 2. Calculation of Interest on CAPITAL Interest on capital = 3. Calculation of profit and loss SuspenseProfit and loss SUSPENSE = 4. Calculation of Share in Revaluation Profit/Loss Revaluation = Calculation of Share in Good willGoodwill = A's Goodwill = Average Profit = A's share of goodwill is DEBITED to be distributed between B and C either = 3: 2.B's Capital = C's Capital =