NCERT Solutions for Class 12 Accountancy (Part 1) Chapter 4 Dissolution of Partnership Firm
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Page 1
NCERT
SOLUTIONS
CLASS - 12th
aglase .co
SOLUTIONS
CLASS - 12th
aglase .co
Page 2
Book : Accountancy Part-I Ncert Solutions | Chapter - 5 Accountancy
Class : 12th
Subject : Accountancy
Chapter : 5
Chapter Name : Dissolution of Partnership Firm
Q1 State the difference between dissolution of partnership and dissolution of partnership firm.
Answer.
Basis Dissolution of partnership Dissolution of partnership
firm
1. Continuation of business The business is not The business of the firm is
terminated. It may continue terminated after the
even after the dissolution of dissolution of the firm.
partnership.
2. Settlement of assets and Assets and liabilities are Assets are sold and
liabilities revalued and new balance liabilities are paid after
sheet is drawn. transferring to realization
A/c.
3. Court's intervention Court does not intervene as A firm can be dissolved by
partnership is dissolved by court's order.
mutual agreement.
4. Closure of books Books are not closed as All books of accounts are
business is not terminated. closed.
5. Other effect It may or may not dissolve It necessarily dissolves the
partnership firm. partnership among
partners.
Page 1 of 59
Class : 12th
Subject : Accountancy
Chapter : 5
Chapter Name : Dissolution of Partnership Firm
Q1 State the difference between dissolution of partnership and dissolution of partnership firm.
Answer.
Basis Dissolution of partnership Dissolution of partnership
firm
1. Continuation of business The business is not The business of the firm is
terminated. It may continue terminated after the
even after the dissolution of dissolution of the firm.
partnership.
2. Settlement of assets and Assets and liabilities are Assets are sold and
liabilities revalued and new balance liabilities are paid after
sheet is drawn. transferring to realization
A/c.
3. Court's intervention Court does not intervene as A firm can be dissolved by
partnership is dissolved by court's order.
mutual agreement.
4. Closure of books Books are not closed as All books of accounts are
business is not terminated. closed.
5. Other effect It may or may not dissolve It necessarily dissolves the
partnership firm. partnership among
partners.
Page 1 of 59
Page 3
Book : Accountancy Part-I Ncert Solutions | Chapter - 5 Accountancy
Page : 248 , Block Name : Short Answer Questions
Q2 State the accounting treatment for: i. Unrecorded assets ii. Unrecorded liabilities.
Answer. i) Bank A/c ------------------- Dr
To realization A/c
(being realization of an unrecorded asset)
ii) Realization A/c ------------Dr
To bank A/c
(for settlement of an unrecorded liability)
Page : 248 , Block Name : Short Answer Questions
Q3 On dissolution, how will you deal with partner’s loan if it appears on the (a) assets side of the
balance sheet, (b) liabilities side of balance sheet.
Answer. a) If partner's loan appear on the asset side of balance sheet, the following entry will be
passed -
Partner's capital A/c ----------Dr
To partner's loan A/c
(For partner's loan transferred to partner's capital)
b) If partner's loan appears on the liabilities side of the balance sheet, following entry will be
passed -
Partner's loan A/c ---------Dr
Page 2 of 59
Page : 248 , Block Name : Short Answer Questions
Q2 State the accounting treatment for: i. Unrecorded assets ii. Unrecorded liabilities.
Answer. i) Bank A/c ------------------- Dr
To realization A/c
(being realization of an unrecorded asset)
ii) Realization A/c ------------Dr
To bank A/c
(for settlement of an unrecorded liability)
Page : 248 , Block Name : Short Answer Questions
Q3 On dissolution, how will you deal with partner’s loan if it appears on the (a) assets side of the
balance sheet, (b) liabilities side of balance sheet.
Answer. a) If partner's loan appear on the asset side of balance sheet, the following entry will be
passed -
Partner's capital A/c ----------Dr
To partner's loan A/c
(For partner's loan transferred to partner's capital)
b) If partner's loan appears on the liabilities side of the balance sheet, following entry will be
passed -
Partner's loan A/c ---------Dr
Page 2 of 59
Page 4
Book : Accountancy Part-I Ncert Solutions | Chapter - 5 Accountancy
To Bank A/c
(Being partner's loan paid off)
Page : 248 , Block Name : Short Answer Questions
Q4 Distinguish between firm’s debts and partner’s private debts
Answer.
Firm's debt Private debt
The property of the firm shall be applied The private property of any partner shall be
first in payment of debt of the firm. Surplus applied first in payment of his private debt.
if any can be divided among the partners Surplus if any may be utilized for payment
as per ratio and it can be used for payment of firm's debt if firm's liabilities exceed the
of private liabilities. firm's assets.
The firm debts are paid first out of the The private debts of the partners are paid
profits of the firm and if any amount is out of the personal property of the partners.
remaining to be paid, then the partners are The assets of the firm aren't applied to pay
jointly and individually responsible for the off the private debts of partners.
debts.
Page : 249 , Block Name : Short Answer Questions
Q5 State the order of settlement of accounts on dissolution?
Answer. When the firm is dissolved, its books of accounts are closed first. Now, all the assets
except cash and external liabilities is transferred to realization account, which is open for the
dissolution purpose. It also records the sale of assets and payment of liabilities and realization
Page 3 of 59
To Bank A/c
(Being partner's loan paid off)
Page : 248 , Block Name : Short Answer Questions
Q4 Distinguish between firm’s debts and partner’s private debts
Answer.
Firm's debt Private debt
The property of the firm shall be applied The private property of any partner shall be
first in payment of debt of the firm. Surplus applied first in payment of his private debt.
if any can be divided among the partners Surplus if any may be utilized for payment
as per ratio and it can be used for payment of firm's debt if firm's liabilities exceed the
of private liabilities. firm's assets.
The firm debts are paid first out of the The private debts of the partners are paid
profits of the firm and if any amount is out of the personal property of the partners.
remaining to be paid, then the partners are The assets of the firm aren't applied to pay
jointly and individually responsible for the off the private debts of partners.
debts.
Page : 249 , Block Name : Short Answer Questions
Q5 State the order of settlement of accounts on dissolution?
Answer. When the firm is dissolved, its books of accounts are closed first. Now, all the assets
except cash and external liabilities is transferred to realization account, which is open for the
dissolution purpose. It also records the sale of assets and payment of liabilities and realization
Page 3 of 59
Page 5
Book : Accountancy Part-I Ncert Solutions | Chapter - 5 Accountancy
expenses. The balance of this account is termed as profit or loss on realization which is
transferred to partner's capital A/c in their profit sharing ratio. Now after closing realization A/c,
partner's capital account is settled and finally the bank account is prepared and closed.
Page : 249 , Block Name : Short Answer Questions
Q6 On what account realization account differs from revaluation account.
Answer.
Basis Realization account Revaluation account
1. Meaning It records the sale of assets It records increase and
and liabilities payment. decrease in value of assets
and liabilities.
2. Time Prepared at the time of Prepared at the time of
dissolution of firm. admission, retirement/death
of a person.
3. Objective To ascertain profit or loss To ascertain profit or loss on
on realization of assets and revaluation of assets and
payment of liabilities. liabilities.
4. Distribution The profit or loss is The profit/loss is distributed
distributed to all the to old partners in old ratio.
partners in profit sharing
ratio.
5. Records It records all the assets and It records only those assets
liabilities at book value. and liabilities whose value
has changed.
Page 4 of 59
expenses. The balance of this account is termed as profit or loss on realization which is
transferred to partner's capital A/c in their profit sharing ratio. Now after closing realization A/c,
partner's capital account is settled and finally the bank account is prepared and closed.
Page : 249 , Block Name : Short Answer Questions
Q6 On what account realization account differs from revaluation account.
Answer.
Basis Realization account Revaluation account
1. Meaning It records the sale of assets It records increase and
and liabilities payment. decrease in value of assets
and liabilities.
2. Time Prepared at the time of Prepared at the time of
dissolution of firm. admission, retirement/death
of a person.
3. Objective To ascertain profit or loss To ascertain profit or loss on
on realization of assets and revaluation of assets and
payment of liabilities. liabilities.
4. Distribution The profit or loss is The profit/loss is distributed
distributed to all the to old partners in old ratio.
partners in profit sharing
ratio.
5. Records It records all the assets and It records only those assets
liabilities at book value. and liabilities whose value
has changed.
Page 4 of 59
Page 6
Book : Accountancy Part-I Ncert Solutions | Chapter - 5 Accountancy
Page : 249 , Block Name : Short Answer Questions
Q1 Explain the process of dissolution of partnership firm.
Answer. Dissolution of partnership firm may take place in the following ways -
1) Dissolution by agreement: A firm is dissolved either by consent of all the partners or in
accordance with the contract between partners.
2) Compulsory Dissolution: A firm is dissolved compulsorily in following cases -
a) When all of the partners or all but one partner becomes insolvent.
b) When the business becomes illegal.
c) When some event takes place which makes it unlawful for partners to carry business.
3) On happening of certain contingencies:
a) On expiry of fixed term for which business was constituted.
b) By death of partner.
c) By partners becoming insolvent.
4) Dissolution by Notice: Firm can be dissolved by any partner gives notice in writing signifying
the intention to seek dissolution of the firm.
5) Dissolution by court: At suit of a partner, the court may order a partnership firm to be
dissolved in any of the following grounds -
a) When the partner becomes insane.
b) When partner is guilty of misconduct which is likely to affect business of firm.
c)when there is a breach of partnership agreement.
d) When the firm cannot be carried on except a loss.
Page 5 of 59
Page : 249 , Block Name : Short Answer Questions
Q1 Explain the process of dissolution of partnership firm.
Answer. Dissolution of partnership firm may take place in the following ways -
1) Dissolution by agreement: A firm is dissolved either by consent of all the partners or in
accordance with the contract between partners.
2) Compulsory Dissolution: A firm is dissolved compulsorily in following cases -
a) When all of the partners or all but one partner becomes insolvent.
b) When the business becomes illegal.
c) When some event takes place which makes it unlawful for partners to carry business.
3) On happening of certain contingencies:
a) On expiry of fixed term for which business was constituted.
b) By death of partner.
c) By partners becoming insolvent.
4) Dissolution by Notice: Firm can be dissolved by any partner gives notice in writing signifying
the intention to seek dissolution of the firm.
5) Dissolution by court: At suit of a partner, the court may order a partnership firm to be
dissolved in any of the following grounds -
a) When the partner becomes insane.
b) When partner is guilty of misconduct which is likely to affect business of firm.
c)when there is a breach of partnership agreement.
d) When the firm cannot be carried on except a loss.
Page 5 of 59
Page 7
Book : Accountancy Part-I Ncert Solutions | Chapter - 5 Accountancy
Page : 249 , Block Name : Long Answer Questions
Q2 What is realization account?
Answer. On dissolution of a partnership firm, all the books of accounts are closed and the profit
or loss on realization of assets and discharge of liabilities is to be computed. For this purpose, a
nominal account is opened which is called realization account. In this account, all assets except
cash and all external liabilities are transferred. It also records the sale of assets and payment of
liabilities and expenses. The balancing figure of this account is the net profit or less on
realization and is transferred to the parties in profit sharing ratio. Following journal entries are
passed -
Particulars Dr. Amt. Cr. Amt
For transfer of assets:
Realisation A/c Dr XX
To assets A/c XX
For transfer of liabilities:
Liabilities A/c Dr XX
To realization A/c XX
For sale of assets:
Bank A/c Dr XX
To realization A/c XX
For asset taken over by partner:
Partner capital A/c Dr XX
To realization A/c XX
Page 6 of 59
Page : 249 , Block Name : Long Answer Questions
Q2 What is realization account?
Answer. On dissolution of a partnership firm, all the books of accounts are closed and the profit
or loss on realization of assets and discharge of liabilities is to be computed. For this purpose, a
nominal account is opened which is called realization account. In this account, all assets except
cash and all external liabilities are transferred. It also records the sale of assets and payment of
liabilities and expenses. The balancing figure of this account is the net profit or less on
realization and is transferred to the parties in profit sharing ratio. Following journal entries are
passed -
Particulars Dr. Amt. Cr. Amt
For transfer of assets:
Realisation A/c Dr XX
To assets A/c XX
For transfer of liabilities:
Liabilities A/c Dr XX
To realization A/c XX
For sale of assets:
Bank A/c Dr XX
To realization A/c XX
For asset taken over by partner:
Partner capital A/c Dr XX
To realization A/c XX
Page 6 of 59
Page 8
Book : Accountancy Part-I Ncert Solutions | Chapter - 5 Accountancy
For payment of liabilities:
Realization A/c Dr XX
To bank A/c XX
For liability discharged by partner:
Realization A/c Dr XX
To partner capital A/c XX
For payment of realization expenses:
Realization A/c Dr XX
To bank A/c XX
For realization of unrecorded asset:
Bank A/c Dr XX
To Realization A/c XX
For payment of unrecorded liability:
Realization A/c Dr XX
To bank A/c XX
For transfer of profit on realization:
Realization A/c Dr XX
To partner's capital A/c XX
Page 7 of 59
For payment of liabilities:
Realization A/c Dr XX
To bank A/c XX
For liability discharged by partner:
Realization A/c Dr XX
To partner capital A/c XX
For payment of realization expenses:
Realization A/c Dr XX
To bank A/c XX
For realization of unrecorded asset:
Bank A/c Dr XX
To Realization A/c XX
For payment of unrecorded liability:
Realization A/c Dr XX
To bank A/c XX
For transfer of profit on realization:
Realization A/c Dr XX
To partner's capital A/c XX
Page 7 of 59
Page 9
Book : Accountancy Part-I Ncert Solutions | Chapter - 5 Accountancy
For transfer of loss on realization:
Partner's capital A/c Dr XX
To realization A/c XX
Page : 249 , Block Name : Long Answer Questions
Q3 Reproduce the format of realization account
Answer. Realization A/c
Particulars Amount Particulars Amount
To land and building XX By sundry credits XX
To plant and machinery XX By bills payable XX
To furniture XX By bank overdraft XX
To bills receivable XX By outstanding expenses XX
To sundry debtors XX By provision for doubtful XX
debts
To bank (payment of XX By bank ( sale of assets) XX
unrecorded liability)
To partner capital A/c XX By partners capital A/c XX
(liability taken by partners) (transfer of assets)
Page 8 of 59
For transfer of loss on realization:
Partner's capital A/c Dr XX
To realization A/c XX
Page : 249 , Block Name : Long Answer Questions
Q3 Reproduce the format of realization account
Answer. Realization A/c
Particulars Amount Particulars Amount
To land and building XX By sundry credits XX
To plant and machinery XX By bills payable XX
To furniture XX By bank overdraft XX
To bills receivable XX By outstanding expenses XX
To sundry debtors XX By provision for doubtful XX
debts
To bank (payment of XX By bank ( sale of assets) XX
unrecorded liability)
To partner capital A/c XX By partners capital A/c XX
(liability taken by partners) (transfer of assets)
Page 8 of 59
Page 10
Book : Accountancy Part-I Ncert Solutions | Chapter - 5 Accountancy
To profit on realization XX By loss transferred to XX
transferred to partner's A/c partner's capital A/c
Page : 249 , Block Name : Long Answer Questions
Q4 How deficiency of creditors is paid off?
Answer. On dissolution of a firm, all the books of accounts are closed and all the assets except
cash and all the liabilities (external) are transferred to the realization account. Now the amount
received from the sale of assets is used to discharge the liabilities and pay off creditors. If the
amount received from the sale of assets falls short, then the private property of partners is used
to pay off the creditors. Even if some account remains unpaid to creditors, then arises deficiency
of creditors. Deficiency can be treated in two ways -
1) Transferring proficiency to the deficiency account
2) Transferring deficiency to the partners capital account
Case 1: When deficiency is transferred to the deficiency account, then a separate account is
prepared for the firm’s creditors. A cash account is prepared to ascertain the firm's cash balance
occurring from sale of firm's assets and partner's private assets. After checking the cash
availability, creditors and external liabilities are paid proportionately. The remaining unpaid
balance is transferred to deficiency account.
Case 2: Creditors are paid by the cash available with the firm, including the partners' individual
contribution. The deficiency or unpaid creditors amount is transferred to partner's capital
account. Deficiency is to be borne by the partners in profit sharing ratio. If any partner is not in a
position to bear this loss it will be regarded as the capital loss of the firm. Now in this case the
solvent partner will borne the deficiency in capital ratio.
Page : 249 , Block Name : Long Answer Questions
Page 9 of 59
To profit on realization XX By loss transferred to XX
transferred to partner's A/c partner's capital A/c
Page : 249 , Block Name : Long Answer Questions
Q4 How deficiency of creditors is paid off?
Answer. On dissolution of a firm, all the books of accounts are closed and all the assets except
cash and all the liabilities (external) are transferred to the realization account. Now the amount
received from the sale of assets is used to discharge the liabilities and pay off creditors. If the
amount received from the sale of assets falls short, then the private property of partners is used
to pay off the creditors. Even if some account remains unpaid to creditors, then arises deficiency
of creditors. Deficiency can be treated in two ways -
1) Transferring proficiency to the deficiency account
2) Transferring deficiency to the partners capital account
Case 1: When deficiency is transferred to the deficiency account, then a separate account is
prepared for the firm’s creditors. A cash account is prepared to ascertain the firm's cash balance
occurring from sale of firm's assets and partner's private assets. After checking the cash
availability, creditors and external liabilities are paid proportionately. The remaining unpaid
balance is transferred to deficiency account.
Case 2: Creditors are paid by the cash available with the firm, including the partners' individual
contribution. The deficiency or unpaid creditors amount is transferred to partner's capital
account. Deficiency is to be borne by the partners in profit sharing ratio. If any partner is not in a
position to bear this loss it will be regarded as the capital loss of the firm. Now in this case the
solvent partner will borne the deficiency in capital ratio.
Page : 249 , Block Name : Long Answer Questions
Page 9 of 59
Page 11
Book : Accountancy Part-I Ncert Solutions | Chapter - 5 Accountancy
Q1 Journalise the following transactions regarding realization expenses:
(a) Realisation expenses amounted to Rs.2,500.
(b) Realisation expenses amounting to Rs.3,000 were paid by Ashok, one of the partners.
(c) Realisation expenses Rs.2,300 borne by Tarun, personally.
(d) Amit, a partner was appointed to realise the assets, at a cost of Rs.4,000.
The actual amount of realisation amounted to Rs.3,000.
Answer.
Journal entries
Particulars L/F Dr Amount Cr Amount
₹ ₹
a) Realisation expenses A/c Dr 2500
To Bank A/c 2500
(Being realisation expenses amounting to
2500)
b) Realisation A/c Dr 3000
To Ashok capital A/c 3000
(Being realisation expenses paid by
Ashok)
c) No entry as borne by Tarun personally.
Page 10 of 59
Q1 Journalise the following transactions regarding realization expenses:
(a) Realisation expenses amounted to Rs.2,500.
(b) Realisation expenses amounting to Rs.3,000 were paid by Ashok, one of the partners.
(c) Realisation expenses Rs.2,300 borne by Tarun, personally.
(d) Amit, a partner was appointed to realise the assets, at a cost of Rs.4,000.
The actual amount of realisation amounted to Rs.3,000.
Answer.
Journal entries
Particulars L/F Dr Amount Cr Amount
₹ ₹
a) Realisation expenses A/c Dr 2500
To Bank A/c 2500
(Being realisation expenses amounting to
2500)
b) Realisation A/c Dr 3000
To Ashok capital A/c 3000
(Being realisation expenses paid by
Ashok)
c) No entry as borne by Tarun personally.
Page 10 of 59
Page 12
Book : Accountancy Part-I Ncert Solutions | Chapter - 5 Accountancy
d) Realisation A/c Dr 4000
To Amit Capital A/c 4000
(Being realisation expenses paid to
Amit.)
Page : 249 , Block Name : Numerical Answer Questions
Q2 Record necessary journal entries in the following cases:
(a) Creditors worth Rs.85,000 accepted Rs.40,000 as cash and Investment worth Rs.43,000, in
full settlement of their claim.
(b) Creditors were Rs.16,000. They accepted Machinery valued at Rs.18,000 in settlement of
their claim.
(c) Creditors were Rs.90,000. They accepted Buildings valued Rs.1,20,000 and paid cash to the
firm Rs.30,000.
Answer.
Journal entries
Particulars L/F Dr Amount Cr Amount
₹ ₹
a) Realisation A/c Dr 40,000
To Cash A/c 40,000
(Being creditors worth 85000 accepted
40,000 cash and investment worth 43000
in full settlement.)
Page 11 of 59
d) Realisation A/c Dr 4000
To Amit Capital A/c 4000
(Being realisation expenses paid to
Amit.)
Page : 249 , Block Name : Numerical Answer Questions
Q2 Record necessary journal entries in the following cases:
(a) Creditors worth Rs.85,000 accepted Rs.40,000 as cash and Investment worth Rs.43,000, in
full settlement of their claim.
(b) Creditors were Rs.16,000. They accepted Machinery valued at Rs.18,000 in settlement of
their claim.
(c) Creditors were Rs.90,000. They accepted Buildings valued Rs.1,20,000 and paid cash to the
firm Rs.30,000.
Answer.
Journal entries
Particulars L/F Dr Amount Cr Amount
₹ ₹
a) Realisation A/c Dr 40,000
To Cash A/c 40,000
(Being creditors worth 85000 accepted
40,000 cash and investment worth 43000
in full settlement.)
Page 11 of 59
Page 13
Book : Accountancy Part-I Ncert Solutions | Chapter - 5 Accountancy
b) No entry
c) Cash A/c Dr 30,000
To realisation A/c 30,000
(Being asset sold and cash received in
settlement of creditors.)
Page : 249 , Block Name : Numerical Answer Questions
Q3 There was an old computer which was written-off in the books of accounts in the previous
year. The same has been taken over by a partner Nitin for Rs.3,000. Journalise the transaction,
supposing. That the firm has been dissolved.
Answer.
Journal entries
Particulars L/F Dr Amount Cr Amount
₹ ₹
a) Nitin Capital A/c Dr
To Realisation A/c 3000
(Being old computer taken by Nitin.) 3000
Page : 249 , Block Name : Numerical Answer Questions
Q4 What journal entries will be recorded for the following transactions on the dissolution of a
firm:
Page 12 of 59
b) No entry
c) Cash A/c Dr 30,000
To realisation A/c 30,000
(Being asset sold and cash received in
settlement of creditors.)
Page : 249 , Block Name : Numerical Answer Questions
Q3 There was an old computer which was written-off in the books of accounts in the previous
year. The same has been taken over by a partner Nitin for Rs.3,000. Journalise the transaction,
supposing. That the firm has been dissolved.
Answer.
Journal entries
Particulars L/F Dr Amount Cr Amount
₹ ₹
a) Nitin Capital A/c Dr
To Realisation A/c 3000
(Being old computer taken by Nitin.) 3000
Page : 249 , Block Name : Numerical Answer Questions
Q4 What journal entries will be recorded for the following transactions on the dissolution of a
firm:
Page 12 of 59
Page 14
Book : Accountancy Part-I Ncert Solutions | Chapter - 5 Accountancy
(a) Payment of unrecorded liabilities of Rs.3,200.
(b) Stock worth Rs.7,500 is taken by a partner Rohit.
(c) Profit on Realisation amounting to Rs.18,000 is to be distributed between the partners
Ashish and Tarun in the ratio of 5:7.
(d) An unrecorded asset realised Rs.5,500.
Answer.
Journal entries
Particulars L/F Dr Amount Cr Amount
₹ ₹
a) Realisation A/c Dr 3200
To Bank A/c 3200
(Being payment of unrecorded liabilities.)
b) Rohit capital A/c Dr 7500
To Realisation A/c 7500
(Being stock worth 7500 taken by rohit.)
c) Realisation A/c Dr 18000
To Ashish capital A/c 7500
To Tarun capital A/c 10500
(Being profit on realisation distributed to
Ashish and Tarun.)
Page 13 of 59
(a) Payment of unrecorded liabilities of Rs.3,200.
(b) Stock worth Rs.7,500 is taken by a partner Rohit.
(c) Profit on Realisation amounting to Rs.18,000 is to be distributed between the partners
Ashish and Tarun in the ratio of 5:7.
(d) An unrecorded asset realised Rs.5,500.
Answer.
Journal entries
Particulars L/F Dr Amount Cr Amount
₹ ₹
a) Realisation A/c Dr 3200
To Bank A/c 3200
(Being payment of unrecorded liabilities.)
b) Rohit capital A/c Dr 7500
To Realisation A/c 7500
(Being stock worth 7500 taken by rohit.)
c) Realisation A/c Dr 18000
To Ashish capital A/c 7500
To Tarun capital A/c 10500
(Being profit on realisation distributed to
Ashish and Tarun.)
Page 13 of 59
Page 15
Book : Accountancy Part-I Ncert Solutions | Chapter - 5 Accountancy
d) Bank A/c Dr 5500
To realization A/c 5500
(Being unrecorded asset realized.)
Page : 249 , Block Name : Numerical Answer Questions
Q5 Give journal entries for the following transactions:
1. To record the realisation of various assets and liabilities.
2. A Firm has a Stock of Rs.1,60,000. Aziz, a partner took over 50% of the Stock at a discount
of 20%.
3. Remaining Stock was sold at a profit of 30% on cost,
4. Land and Building (book value Rs.1,60,000) sold for Rs.3,00,000 through a broker who
charged 2%, commission on the deal.
5. Plant and Machinery (book value Rs.60,000) was handed over to a Creditor at an agreed
valuation of 10% less than the book value.
6. Investment whose face value was Rs.4,000 was realised at 50%.
Answer.
Journal entries
Particulars L/F Dr Amount Cr Amount
₹ ₹
Page 14 of 59
d) Bank A/c Dr 5500
To realization A/c 5500
(Being unrecorded asset realized.)
Page : 249 , Block Name : Numerical Answer Questions
Q5 Give journal entries for the following transactions:
1. To record the realisation of various assets and liabilities.
2. A Firm has a Stock of Rs.1,60,000. Aziz, a partner took over 50% of the Stock at a discount
of 20%.
3. Remaining Stock was sold at a profit of 30% on cost,
4. Land and Building (book value Rs.1,60,000) sold for Rs.3,00,000 through a broker who
charged 2%, commission on the deal.
5. Plant and Machinery (book value Rs.60,000) was handed over to a Creditor at an agreed
valuation of 10% less than the book value.
6. Investment whose face value was Rs.4,000 was realised at 50%.
Answer.
Journal entries
Particulars L/F Dr Amount Cr Amount
₹ ₹
Page 14 of 59
Page 16
Book : Accountancy Part-I Ncert Solutions | Chapter - 5 Accountancy
1. a) Realisation A/c Dr
To Assets A/c
(Being assets transferred to realisation
A/c.)
b) Liabilities A/c Dr
To Realisation A/c
(Being liabilities transferred to
realisation A/c.)
c) Bank A/c Dr
To Realisation A/c
(Being assets realised.)
d) Realisation A/c Dr
To Bank A/c
(Being liabilities paid off.)
2. Aziz capital A/c Dr 64,000
To Realisation A/c 64,000
(Being 50% of stock of 160000taken at
discount of 20%.
Page 15 of 59
1. a) Realisation A/c Dr
To Assets A/c
(Being assets transferred to realisation
A/c.)
b) Liabilities A/c Dr
To Realisation A/c
(Being liabilities transferred to
realisation A/c.)
c) Bank A/c Dr
To Realisation A/c
(Being assets realised.)
d) Realisation A/c Dr
To Bank A/c
(Being liabilities paid off.)
2. Aziz capital A/c Dr 64,000
To Realisation A/c 64,000
(Being 50% of stock of 160000taken at
discount of 20%.
Page 15 of 59
Page 17
Book : Accountancy Part-I Ncert Solutions | Chapter - 5 Accountancy
3. Bank A/c Dr 1,04,000
To Realisation A/c 1,04,000
(Being 50% of stock sold at profit of
30% on cost i.e, 80,000 + 20% of
80,000.)
4. Bank A/c Dr 3,06,000
To Realisation A/c 3,06,000
(Being land and building sold for
3,00,000 and 2% commission to
broker.)
5. No entry
6. Bank A/c Dr 2000
To Realisation A/c 2000
(Being investment worth 4000 was
realised at 50%.)
Page : 249 , Block Name : Numerical Answer Questions
Q6 How will you deal with the realisation expenses of the firm of Rashim and Bindiya in the
following cases:
1. Realisation expenses amounts to Rs.1,00,000,
2. Realisation expenses amounting to Rs.30,000 are paid by Rashim, a partner.
Page 16 of 59
3. Bank A/c Dr 1,04,000
To Realisation A/c 1,04,000
(Being 50% of stock sold at profit of
30% on cost i.e, 80,000 + 20% of
80,000.)
4. Bank A/c Dr 3,06,000
To Realisation A/c 3,06,000
(Being land and building sold for
3,00,000 and 2% commission to
broker.)
5. No entry
6. Bank A/c Dr 2000
To Realisation A/c 2000
(Being investment worth 4000 was
realised at 50%.)
Page : 249 , Block Name : Numerical Answer Questions
Q6 How will you deal with the realisation expenses of the firm of Rashim and Bindiya in the
following cases:
1. Realisation expenses amounts to Rs.1,00,000,
2. Realisation expenses amounting to Rs.30,000 are paid by Rashim, a partner.
Page 16 of 59
Page 18
Book : Accountancy Part-I Ncert Solutions | Chapter - 5 Accountancy
3. Realisation expenses are to be borne by Rashim for which he will be paid Rs.70,000 as
remuneration for completing the dissolution process. The actual expenses incurred by Rashim
were Rs.1,20,000.
Answer.
Journal entries
Particulars L/F Dr Amount Cr Amount
₹ ₹
a) Realisation A/c Dr 1,00,000
To Bank A/c 1,00,000
(Being realisation expenses paid.)
b) Realisation A/c Dr 30,000
To Rashim capital A/c 30,000
(Being realization expenses paid by
Rashim.)
d) Realisation A/c Dr 70,000
To Rashim Capital A/c 70,000
(Being 70,000 paid to rashim for
payment of realisation expense.)
Page : 250 , Block Name : Numerical Answer Questions
Page 17 of 59
3. Realisation expenses are to be borne by Rashim for which he will be paid Rs.70,000 as
remuneration for completing the dissolution process. The actual expenses incurred by Rashim
were Rs.1,20,000.
Answer.
Journal entries
Particulars L/F Dr Amount Cr Amount
₹ ₹
a) Realisation A/c Dr 1,00,000
To Bank A/c 1,00,000
(Being realisation expenses paid.)
b) Realisation A/c Dr 30,000
To Rashim capital A/c 30,000
(Being realization expenses paid by
Rashim.)
d) Realisation A/c Dr 70,000
To Rashim Capital A/c 70,000
(Being 70,000 paid to rashim for
payment of realisation expense.)
Page : 250 , Block Name : Numerical Answer Questions
Page 17 of 59
Page 19
Book : Accountancy Part-I Ncert Solutions | Chapter - 5 Accountancy
Q7 The book value of assets (other than cash and bank) transferred to Realisation Account is
Rs.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.
Journal entries
Particulars L/F Dr Amount Cr Amount
₹ ₹
i) Realisation A/c Dr 1,00,000
To Assets A/c 1,00,000
(Being assets transferred to realisation
A/c.)
ii) Atul A/c Dr 40,000
To Realisation A/c 40,000
(Being 50% of assets taken over by
partner, Atul at discount 20%.)
iii) Bank A/c Dr 58,500
To Realisation A/c 58,500
(Being 40% of assets sold at profit of 30%
on cost i.e, 45000.)
Page 18 of 59
Q7 The book value of assets (other than cash and bank) transferred to Realisation Account is
Rs.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.
Journal entries
Particulars L/F Dr Amount Cr Amount
₹ ₹
i) Realisation A/c Dr 1,00,000
To Assets A/c 1,00,000
(Being assets transferred to realisation
A/c.)
ii) Atul A/c Dr 40,000
To Realisation A/c 40,000
(Being 50% of assets taken over by
partner, Atul at discount 20%.)
iii) Bank A/c Dr 58,500
To Realisation A/c 58,500
(Being 40% of assets sold at profit of 30%
on cost i.e, 45000.)
Page 18 of 59
Page 20
Book : Accountancy Part-I Ncert Solutions | Chapter - 5 Accountancy
Page : 250 , Block Name : Numerical Answer Questions
Q8 Record necessary journal entries to record the following unrecorded assets and liabilities in
the books of Paras and Priya:
1. There was an old furniture in the firm which had been written-off completely in the books. This
was sold for Rs. 3,000,
2. Ashish, an old customer whose account for Rs.1,000 was written-off as bad in the previous
year, paid 60%, of the amount,
3. Paras agreed to take over the firm’s goodwill (not recorded in the books of the firm), at a
valuation of Rs.30,000,
4. There was an old typewriter which had been written-off completely from the books. It was
estimated to realize Rs.400. It was taken away by Priya at an estimated price less 25%,
5. There were 100 shares of Rs.10 each in Star Limited acquired at a cost of Rs.2,000 which
had been written-off completely from the books. These shares are valued @ Rs.6 each and
divided among the partners in their profit sharing ratio.
Answer.
Journal entries
Particulars L/F Dr Amount Cr Amount
₹ ₹
i) Bank A/c Dr 3000
To Realisation A/c 3000
(Being old furniture sold for 3000.)
Page 19 of 59
Page : 250 , Block Name : Numerical Answer Questions
Q8 Record necessary journal entries to record the following unrecorded assets and liabilities in
the books of Paras and Priya:
1. There was an old furniture in the firm which had been written-off completely in the books. This
was sold for Rs. 3,000,
2. Ashish, an old customer whose account for Rs.1,000 was written-off as bad in the previous
year, paid 60%, of the amount,
3. Paras agreed to take over the firm’s goodwill (not recorded in the books of the firm), at a
valuation of Rs.30,000,
4. There was an old typewriter which had been written-off completely from the books. It was
estimated to realize Rs.400. It was taken away by Priya at an estimated price less 25%,
5. There were 100 shares of Rs.10 each in Star Limited acquired at a cost of Rs.2,000 which
had been written-off completely from the books. These shares are valued @ Rs.6 each and
divided among the partners in their profit sharing ratio.
Answer.
Journal entries
Particulars L/F Dr Amount Cr Amount
₹ ₹
i) Bank A/c Dr 3000
To Realisation A/c 3000
(Being old furniture sold for 3000.)
Page 19 of 59
Page 21
Book : Accountancy Part-I Ncert Solutions | Chapter - 5 Accountancy
ii) Bank A/c Dr
To Realisation A/c 600
(Being loss of bad debt realised.) 600
iii) Paras capital A/c Dr
To Realisation A/c 30,000
(Being unrecorded goodwill taken by paras.) 30,000
iv) Priya capital A/c Dr 800
To Realisation A/c 800
(Being old typewriter value realised.)
v) Priya capital A/c Dr
Paras capital A/c Dr 300
To Realisation A/c 300
(Being 100 share of 10each taken by paras 600
and priya @ Rs.6.)
Page : 250 , Block Name : Numerical Answer Questions
Q9 All partners wishes to dissolve the firm. Yastin, a partner wants that her loan of Rs. 2,00,000
must be paid off before the payment of capitals to the partners. But, Amart, another partner
wants that the capitals must be paid before the payment of Yastin’s loan. You are required to
settle the conflict giving reasons.
Page 20 of 59
ii) Bank A/c Dr
To Realisation A/c 600
(Being loss of bad debt realised.) 600
iii) Paras capital A/c Dr
To Realisation A/c 30,000
(Being unrecorded goodwill taken by paras.) 30,000
iv) Priya capital A/c Dr 800
To Realisation A/c 800
(Being old typewriter value realised.)
v) Priya capital A/c Dr
Paras capital A/c Dr 300
To Realisation A/c 300
(Being 100 share of 10each taken by paras 600
and priya @ Rs.6.)
Page : 250 , Block Name : Numerical Answer Questions
Q9 All partners wishes to dissolve the firm. Yastin, a partner wants that her loan of Rs. 2,00,000
must be paid off before the payment of capitals to the partners. But, Amart, another partner
wants that the capitals must be paid before the payment of Yastin’s loan. You are required to
settle the conflict giving reasons.
Page 20 of 59
Page 22
Book : Accountancy Part-I Ncert Solutions | Chapter - 5 Accountancy
Answer. According to partnership act 1932, loans and advanced must be paid off first and
before the settlement of capital accounts. Hence, Yastin’s point is correct and his loan of
Rs.2,00,000 should be paid off first.
Page : 250 , Block Name : Numerical Answer Questions
Q10 What journal entries would be recorded for the following transactions on the dissolution of a
firm after various assets (other than cash) on the third party liabilities have been transferred to
Realisation account.
1. Arti took over the Stock worth Rs.80,000 at Rs.68,000.
2. There was unrecorded Bike of Rs.40,000 which was taken over By Mr.Karim.
3. The firm paid Rs.40,000 as compensation to employees.
4. Sundry creditors amounting to Rs.36,000 were settled at a discount of 15%.
5. Loss on realisation Rs.42,000 was to be distributed between Arti and Karim in the ratio of 3:4.
Answer.
Journal entries
Particulars L/F Dr Amount Cr Amount
₹ ₹
i) Arti capital A/c Dr 68,000
To Realisation A/c 68,000
(Beings stock took over by Arti.)
Page 21 of 59
Answer. According to partnership act 1932, loans and advanced must be paid off first and
before the settlement of capital accounts. Hence, Yastin’s point is correct and his loan of
Rs.2,00,000 should be paid off first.
Page : 250 , Block Name : Numerical Answer Questions
Q10 What journal entries would be recorded for the following transactions on the dissolution of a
firm after various assets (other than cash) on the third party liabilities have been transferred to
Realisation account.
1. Arti took over the Stock worth Rs.80,000 at Rs.68,000.
2. There was unrecorded Bike of Rs.40,000 which was taken over By Mr.Karim.
3. The firm paid Rs.40,000 as compensation to employees.
4. Sundry creditors amounting to Rs.36,000 were settled at a discount of 15%.
5. Loss on realisation Rs.42,000 was to be distributed between Arti and Karim in the ratio of 3:4.
Answer.
Journal entries
Particulars L/F Dr Amount Cr Amount
₹ ₹
i) Arti capital A/c Dr 68,000
To Realisation A/c 68,000
(Beings stock took over by Arti.)
Page 21 of 59
Page 23
Book : Accountancy Part-I Ncert Solutions | Chapter - 5 Accountancy
ii) Karim capital A/c Dr 40,000
To Realisation A/c 40,000
(Being unrecorded bike taken by karim.)
iii) Realisation A/c Dr 40,000
To Bank A/c 40,000
(Being unrecorded goodwill taken by
paras.)
iv) Realisation A/c Dr 30,600
To Bank A/c 30,600
(Being sundry creditors settled at discount
of 15%.)
v) Arti capital A/c Dr 18000
Karim capital A/c Dr 24000
To Realisation A/c 42000
(Being loss on realization transferred to
partner Arti and karim in 3:4 ratio.)
Page : 250 , Block Name : Numerical Answer Questions
Q11 Rose and Lily shared profits in the ratio of 2:3. Their Balance Sheet on March 31, 2017
was as follows:
Balance Sheet of Rose and Lily as on March 31,2017
Page 22 of 59
ii) Karim capital A/c Dr 40,000
To Realisation A/c 40,000
(Being unrecorded bike taken by karim.)
iii) Realisation A/c Dr 40,000
To Bank A/c 40,000
(Being unrecorded goodwill taken by
paras.)
iv) Realisation A/c Dr 30,600
To Bank A/c 30,600
(Being sundry creditors settled at discount
of 15%.)
v) Arti capital A/c Dr 18000
Karim capital A/c Dr 24000
To Realisation A/c 42000
(Being loss on realization transferred to
partner Arti and karim in 3:4 ratio.)
Page : 250 , Block Name : Numerical Answer Questions
Q11 Rose and Lily shared profits in the ratio of 2:3. Their Balance Sheet on March 31, 2017
was as follows:
Balance Sheet of Rose and Lily as on March 31,2017
Page 22 of 59
Page 24
Book : Accountancy Part-I Ncert Solutions | Chapter - 5 Accountancy
Liabilities Amount Assets Amount
(Rs.) (Rs.)
Creditors 40,000 Cash 16,000
Lily’s loan 32,000 Debtors 80,000
Profit and loss 50,000 Less: Prov. For doubtful
debts 3600
76,400
Capitals: Inventory 1,09,600
Lily 1,60,000 Bills receivable 40,000
Rose 2,40,000 Building 2,80,000
5,22,000 5,22,000
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 Account, Loan Account and Cash Account.
Answer.
Realisation A/c
Particulars Amount Particulars Amount
₹ ₹
Page 23 of 59
Liabilities Amount Assets Amount
(Rs.) (Rs.)
Creditors 40,000 Cash 16,000
Lily’s loan 32,000 Debtors 80,000
Profit and loss 50,000 Less: Prov. For doubtful
debts 3600
76,400
Capitals: Inventory 1,09,600
Lily 1,60,000 Bills receivable 40,000
Rose 2,40,000 Building 2,80,000
5,22,000 5,22,000
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 Account, Loan Account and Cash Account.
Answer.
Realisation A/c
Particulars Amount Particulars Amount
₹ ₹
Page 23 of 59
Page 25
Book : Accountancy Part-I Ncert Solutions | Chapter - 5 Accountancy
To Debtors 80,000 By provision for doubtful 3600
debt
To Inventory 109600 By Creditors 40000
To Bills receivable 40000 By Cash (assets) 484000
To Building 280000 By Cash (motor cycle) 10000
To Cash ( creditors ) 38000 By Rose (bills receivable) 33000
To Cash outstanding 5000
electricity bill
To Profit on realisation:
Rose capital: 6240
Lily capital: 9360 15600
570600 570600
Partner’s capital A/c
Particulars Rose Lily Particulars Rose Lily
To Realisation 33000 By balance b/d 240000 160000
To Cash A/c 233240 199360 By profit & loss 20000 30000
A/c
By profit on 6240 9360
realisation A/c
Page 24 of 59
To Debtors 80,000 By provision for doubtful 3600
debt
To Inventory 109600 By Creditors 40000
To Bills receivable 40000 By Cash (assets) 484000
To Building 280000 By Cash (motor cycle) 10000
To Cash ( creditors ) 38000 By Rose (bills receivable) 33000
To Cash outstanding 5000
electricity bill
To Profit on realisation:
Rose capital: 6240
Lily capital: 9360 15600
570600 570600
Partner’s capital A/c
Particulars Rose Lily Particulars Rose Lily
To Realisation 33000 By balance b/d 240000 160000
To Cash A/c 233240 199360 By profit & loss 20000 30000
A/c
By profit on 6240 9360
realisation A/c
Page 24 of 59
Page 26
Book : Accountancy Part-I Ncert Solutions | Chapter - 5 Accountancy
266240 199360 266240 199360
Lily’s loan A/c
Particulars Amount Particulars Amount
₹ ₹
To Cash A/c 32000 By balance b/d 32000
32000 32000
Cash A/c
Particulars Amount Particulars Amount
₹ ₹
To balance b/d 16000 By Realisation (creditor) 32000
To Realisation (assets) 484000 By Realisation 2400
To Realisation 10000 By Realisation (O/s 5000
(motorcycle) electricity bill)
By Lily’s loan 32000
By Lily’s capital A/c 233240
By Rose’s capital A/c 199360
510000 510000
Page 25 of 59
266240 199360 266240 199360
Lily’s loan A/c
Particulars Amount Particulars Amount
₹ ₹
To Cash A/c 32000 By balance b/d 32000
32000 32000
Cash A/c
Particulars Amount Particulars Amount
₹ ₹
To balance b/d 16000 By Realisation (creditor) 32000
To Realisation (assets) 484000 By Realisation 2400
To Realisation 10000 By Realisation (O/s 5000
(motorcycle) electricity bill)
By Lily’s loan 32000
By Lily’s capital A/c 233240
By Rose’s capital A/c 199360
510000 510000
Page 25 of 59
Page 27
Book : Accountancy Part-I Ncert Solutions | Chapter - 5 Accountancy
Page : 251 , Block Name : Numerical Answer Questions
Q12 Shilpa, Meena and Nanda decided to dissolve their partnership on March 31,2017. Their
profit sharing ratio was 3:2:1 and their Balance Sheet was as under:
Balance Sheet of Shilpa, Meena and Nanda as on March 31, 2017
Liabilities Amount (Rs.) Assets Amount (Rs.)
Capitals: Land 81,000
Shilpa 80,000 Stock 56,760
Meena 40,000 Debtors 18,600
Bank loan 20000 Nanda’s capital 23,000
Creditors 37,000 Cash 10,840
Provision for doubtful 1200
debts
General reserve 12000
1,90,200 1,90,200
The stock of value of Rs.41,660 are taken over by Shilpa for Rs.35,000 and she agreed to
discharge the bank loan. The remaining stock was sold at Rs.14,000 and debtors amounting to
Rs.10,000 realised Rs.8,000. land is sold for Rs.1,10,000. The remaining debtors realised 50%
at their book value. Cost of realisation amounted to Rs.1,200. There was a typewriter not
recorded in the books worth Rs.6,000 which were taken over by one of the Creditors at this
value. Prepare a Realisation Account.
Page 26 of 59
Page : 251 , Block Name : Numerical Answer Questions
Q12 Shilpa, Meena and Nanda decided to dissolve their partnership on March 31,2017. Their
profit sharing ratio was 3:2:1 and their Balance Sheet was as under:
Balance Sheet of Shilpa, Meena and Nanda as on March 31, 2017
Liabilities Amount (Rs.) Assets Amount (Rs.)
Capitals: Land 81,000
Shilpa 80,000 Stock 56,760
Meena 40,000 Debtors 18,600
Bank loan 20000 Nanda’s capital 23,000
Creditors 37,000 Cash 10,840
Provision for doubtful 1200
debts
General reserve 12000
1,90,200 1,90,200
The stock of value of Rs.41,660 are taken over by Shilpa for Rs.35,000 and she agreed to
discharge the bank loan. The remaining stock was sold at Rs.14,000 and debtors amounting to
Rs.10,000 realised Rs.8,000. land is sold for Rs.1,10,000. The remaining debtors realised 50%
at their book value. Cost of realisation amounted to Rs.1,200. There was a typewriter not
recorded in the books worth Rs.6,000 which were taken over by one of the Creditors at this
value. Prepare a Realisation Account.
Page 26 of 59
Page 28
Book : Accountancy Part-I Ncert Solutions | Chapter - 5 Accountancy
Answer.
Realisation A/c
Particulars Amount Particulars Amount
₹ ₹
To Land 81000 By Provisions for doubtful 1200
debts
To Stock 56760 By Creditors 37000
To Debtors 18600 By Bank loan 20000
To Cash (expense) 1200 By Shilpa (stock) 35000
To Profit transferred to: 31000 By Cash (stock) 14000
Shilpa capital: 10470 By Cash (debtors) 8000
Meena capital: 6980 By Cash (land) 110000
Nanda capital: 3490 20940 By Cash (debtors) 4300
229500 229500
Partner’s capital A/c
Page 27 of 59
Answer.
Realisation A/c
Particulars Amount Particulars Amount
₹ ₹
To Land 81000 By Provisions for doubtful 1200
debts
To Stock 56760 By Creditors 37000
To Debtors 18600 By Bank loan 20000
To Cash (expense) 1200 By Shilpa (stock) 35000
To Profit transferred to: 31000 By Cash (stock) 14000
Shilpa capital: 10470 By Cash (debtors) 8000
Meena capital: 6980 By Cash (land) 110000
Nanda capital: 3490 20940 By Cash (debtors) 4300
229500 229500
Partner’s capital A/c
Page 27 of 59
Page 29
Book : Accountancy Part-I Ncert Solutions | Chapter - 5 Accountancy
Particulars Shilpa Meena Nanda Particulars Shilpa Meena Nanda
To bal b/d 23000 By bal b/d 80000 40000
To 35000 By general 6000 4000 2000
realisation reserve
To cash 81470 50980 By 20000
realisation
(bank loan)
By 10470 6980 3490
realisation
(profit)
By cash 17510
116470 50980 23000 116470 50980 23000
Cash A/c
Particulars Amount Particulars Amount
₹ ₹
To balance b/d 10840 By Realisation (expense) 1200
To Realisation (stock) 14000 By Realisation (creditors) 31000
To Realisation (debtors) 12300 By Shilpa capital A/c 81470
To Realisation (land) 110000 By Meena capital A/c 50980
Page 28 of 59
Particulars Shilpa Meena Nanda Particulars Shilpa Meena Nanda
To bal b/d 23000 By bal b/d 80000 40000
To 35000 By general 6000 4000 2000
realisation reserve
To cash 81470 50980 By 20000
realisation
(bank loan)
By 10470 6980 3490
realisation
(profit)
By cash 17510
116470 50980 23000 116470 50980 23000
Cash A/c
Particulars Amount Particulars Amount
₹ ₹
To balance b/d 10840 By Realisation (expense) 1200
To Realisation (stock) 14000 By Realisation (creditors) 31000
To Realisation (debtors) 12300 By Shilpa capital A/c 81470
To Realisation (land) 110000 By Meena capital A/c 50980
Page 28 of 59
Page 30
Book : Accountancy Part-I Ncert Solutions | Chapter - 5 Accountancy
To Nanda’s capital 17570
164650 164650
Working note:
1) Stock taken by Shilpa = 41660
Remaining stock = 56760 – 41660 = 15100
2) Debtors paid = 10000
Remaining debtors = 18600 – 10000 = 8600
Debtors realised \(= \dfrac{50}{100}\times 8600=4300\)
Page : 251 , Block Name : Numerical Answer Questions
Q13 Surjit and Rahi were sharing profits (losses) in the ratio of 3:2, their Balance Sheet as on
March 31, 2017 is as follows:
Balance Sheet of Surjit and Rahi as on March 31, 2017
Liabilities Amount (Rs.) Assets Amount (Rs.)
Creditors 38,000 Bank 11,500
Mrs. Surjit loan 10,000 Stock 6,000
Reserve 15,000 Debtors 19,000
Rahi’s loan 5,000 Furniture 4,000
Capital’s: Plant 28,000
Page 29 of 59
To Nanda’s capital 17570
164650 164650
Working note:
1) Stock taken by Shilpa = 41660
Remaining stock = 56760 – 41660 = 15100
2) Debtors paid = 10000
Remaining debtors = 18600 – 10000 = 8600
Debtors realised \(= \dfrac{50}{100}\times 8600=4300\)
Page : 251 , Block Name : Numerical Answer Questions
Q13 Surjit and Rahi were sharing profits (losses) in the ratio of 3:2, their Balance Sheet as on
March 31, 2017 is as follows:
Balance Sheet of Surjit and Rahi as on March 31, 2017
Liabilities Amount (Rs.) Assets Amount (Rs.)
Creditors 38,000 Bank 11,500
Mrs. Surjit loan 10,000 Stock 6,000
Reserve 15,000 Debtors 19,000
Rahi’s loan 5,000 Furniture 4,000
Capital’s: Plant 28,000
Page 29 of 59
Page 31
Book : Accountancy Part-I Ncert Solutions | Chapter - 5 Accountancy
Surjit 10,000 Investment 10,000
Rahi 8,000 Profit & loss 7,500
86,000 86,000
The firm was dissolved on March 31, 2017 on the following terms:
1. Surjit agreed to take the investments at Rs.8,000 and to pay Mrs.Surojit’s loan.
2. Other assets were realised as follows:
Stock Rs.5,000
Debtors Rs.18,500
Furniture Rs.4,500
Plant Rs.25,000
3. Expenses on realisation amounted to Rs. 1,600.
4. Creditors agreed to accept Rs. 37,000 as a final settlement.
You are required to prepare a Realisation account, Partner’s Capital account and Bank account.
Answer.
Realisation A/c
Particulars Amount Particulars Amount
₹ ₹
To Stock 6000 By Creditors 38000
To Debtors 19000 By Surjit (investment) 8000
Page 30 of 59
Surjit 10,000 Investment 10,000
Rahi 8,000 Profit & loss 7,500
86,000 86,000
The firm was dissolved on March 31, 2017 on the following terms:
1. Surjit agreed to take the investments at Rs.8,000 and to pay Mrs.Surojit’s loan.
2. Other assets were realised as follows:
Stock Rs.5,000
Debtors Rs.18,500
Furniture Rs.4,500
Plant Rs.25,000
3. Expenses on realisation amounted to Rs. 1,600.
4. Creditors agreed to accept Rs. 37,000 as a final settlement.
You are required to prepare a Realisation account, Partner’s Capital account and Bank account.
Answer.
Realisation A/c
Particulars Amount Particulars Amount
₹ ₹
To Stock 6000 By Creditors 38000
To Debtors 19000 By Surjit (investment) 8000
Page 30 of 59
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Book : Accountancy Part-I Ncert Solutions | Chapter - 5 Accountancy
To Furniture 4000 By Cash (assets):
To Plant 28000 Stock 5000
To Investment 10000 Debtors 18500
To Cash (expenses) 1600 Furniture 4500
To Cash (creditors) 37000 Plant 25000 53000
To Surjit capital (mrs. Surjit 10000 By loss transferred
loan)
Surjit capital 3960
Rani capital 2640
By Mrs. Surjit loan 10000
115600 115600
Partner’s capital A/c
Particulars Surjit Rani Particulars Surjit Rani
To Profit & loss A/c 4500 3000 By bal b/d 10000 8000
To Loan on 3960 2640 By Reserves 9000 6000
realisation
To Realisation 8000 By Realisation 10000
(Mrs. Surjit loan)
Page 31 of 59
To Furniture 4000 By Cash (assets):
To Plant 28000 Stock 5000
To Investment 10000 Debtors 18500
To Cash (expenses) 1600 Furniture 4500
To Cash (creditors) 37000 Plant 25000 53000
To Surjit capital (mrs. Surjit 10000 By loss transferred
loan)
Surjit capital 3960
Rani capital 2640
By Mrs. Surjit loan 10000
115600 115600
Partner’s capital A/c
Particulars Surjit Rani Particulars Surjit Rani
To Profit & loss A/c 4500 3000 By bal b/d 10000 8000
To Loan on 3960 2640 By Reserves 9000 6000
realisation
To Realisation 8000 By Realisation 10000
(Mrs. Surjit loan)
Page 31 of 59
Page 33
Book : Accountancy Part-I Ncert Solutions | Chapter - 5 Accountancy
To Cash 12540 8360
29000 14000 29000 14000
Cash Account
Particulars Amount Particulars Amount
₹ ₹
To bal b/d 11500 By Realisation (expenses) 1600
To Realisation (asset) 53000 By Realisation (creditors) 37000
By Surjit capital A/c 12540
By Rani capital A/c 8360
By Rani loan 5000
64500 64500
Rani’s loan
Particulars Amount Particulars Amount
₹ ₹
To Cash A/c 5000 By bal b/d 5000
5000 5000
Page 32 of 59
To Cash 12540 8360
29000 14000 29000 14000
Cash Account
Particulars Amount Particulars Amount
₹ ₹
To bal b/d 11500 By Realisation (expenses) 1600
To Realisation (asset) 53000 By Realisation (creditors) 37000
By Surjit capital A/c 12540
By Rani capital A/c 8360
By Rani loan 5000
64500 64500
Rani’s loan
Particulars Amount Particulars Amount
₹ ₹
To Cash A/c 5000 By bal b/d 5000
5000 5000
Page 32 of 59
Page 34
Book : Accountancy Part-I Ncert Solutions | Chapter - 5 Accountancy
Page : 252 , Block Name : Numerical Answer Questions
Q14 Rita, Geeta and Ashish were partners in a firm sharing profits/losses in the ratio of 3:2:1.
On March 31, 2017 their balance sheet was as follows:
Liabilities Amount (Rs.) Assets Amount (Rs.)
Capitals: Cash 22,500
Rita 80,000 Stock 36,000
Geeta 50,000 Debtors 52,300
Ashish 30,000 1,60,000 Investment 69,000
Creditors 65,000 Plant 91,200
Bills payable 26,000
General reserve 20,000
2,71,000 2,71,000
On the date of above mentioned date the firm was dissolved:
1. Rita was appointed to realise the assets. Rita was to receive 5% commission on the rate of
assets (except cash) and was to bear all expenses of realisation,
2. Assets were realised as follows:
Rs.
Debtors 30,000
Page 33 of 59
Page : 252 , Block Name : Numerical Answer Questions
Q14 Rita, Geeta and Ashish were partners in a firm sharing profits/losses in the ratio of 3:2:1.
On March 31, 2017 their balance sheet was as follows:
Liabilities Amount (Rs.) Assets Amount (Rs.)
Capitals: Cash 22,500
Rita 80,000 Stock 36,000
Geeta 50,000 Debtors 52,300
Ashish 30,000 1,60,000 Investment 69,000
Creditors 65,000 Plant 91,200
Bills payable 26,000
General reserve 20,000
2,71,000 2,71,000
On the date of above mentioned date the firm was dissolved:
1. Rita was appointed to realise the assets. Rita was to receive 5% commission on the rate of
assets (except cash) and was to bear all expenses of realisation,
2. Assets were realised as follows:
Rs.
Debtors 30,000
Page 33 of 59
Page 35
Book : Accountancy Part-I Ncert Solutions | Chapter - 5 Accountancy
Stock 26,000
Plant 42,750
3. Investments were realised at 85% of the book value,
4. Expenses of realisation amounted to Rs.4,100,
5. Firm had to pay Rs. 7,200 for outstanding salary not provided for earlier,
6. Contingent liability in respect of bills discounted with the bank was also materialised and paid
off Rs.9,800.
Prepare Realisation account, Capital Accounts of Partner’s and Cash Account.
Answer.
Realisation A/c
Particulars Amount Particulars Amount
₹ ₹
To Debtors 52300 By Creditors 65000
To Stock 36000 By Surjit (investment) 26000
To Investment 69000 By Cash (assets):
To Plant 91200 Stock 26000
To Cash: Debtors 30000
O/s salary 7200 Plant 42750
Discounted bill 9800 Investment 58650 157400
Page 34 of 59
Stock 26,000
Plant 42,750
3. Investments were realised at 85% of the book value,
4. Expenses of realisation amounted to Rs.4,100,
5. Firm had to pay Rs. 7,200 for outstanding salary not provided for earlier,
6. Contingent liability in respect of bills discounted with the bank was also materialised and paid
off Rs.9,800.
Prepare Realisation account, Capital Accounts of Partner’s and Cash Account.
Answer.
Realisation A/c
Particulars Amount Particulars Amount
₹ ₹
To Debtors 52300 By Creditors 65000
To Stock 36000 By Surjit (investment) 26000
To Investment 69000 By Cash (assets):
To Plant 91200 Stock 26000
To Cash: Debtors 30000
O/s salary 7200 Plant 42750
Discounted bill 9800 Investment 58650 157400
Page 34 of 59
Page 36
Book : Accountancy Part-I Ncert Solutions | Chapter - 5 Accountancy
Creditors 65000 By loss transferred to:
Bills payable 26000 108000 Rita 57985
To Reta’s capital A/c: (5% 7870 Geeta 38657
of 157400)
Ashish 19328 115970
364370 364370
Partner’s capital A/c
Particulars Rita Geeta Ashish Particulars Rita Geeta Ashish
To 57985 38657 19328 By bal b/d 80000 30000 30000
Realisation
(loss)
To Bank A/c 39885 18010 14005 By Reserves 10000 6667 3333
By Realisation 7870
(commission)
97870 56667 33333 97870 56667 33333
Bank A/c
Particulars Amount Particulars Amount
₹ ₹
Page 35 of 59
Creditors 65000 By loss transferred to:
Bills payable 26000 108000 Rita 57985
To Reta’s capital A/c: (5% 7870 Geeta 38657
of 157400)
Ashish 19328 115970
364370 364370
Partner’s capital A/c
Particulars Rita Geeta Ashish Particulars Rita Geeta Ashish
To 57985 38657 19328 By bal b/d 80000 30000 30000
Realisation
(loss)
To Bank A/c 39885 18010 14005 By Reserves 10000 6667 3333
By Realisation 7870
(commission)
97870 56667 33333 97870 56667 33333
Bank A/c
Particulars Amount Particulars Amount
₹ ₹
Page 35 of 59
Page 37
Book : Accountancy Part-I Ncert Solutions | Chapter - 5 Accountancy
To bal b/d 22500 By Realisation 108000
To Realisation (assets) 157400 By Rita capital A/c 39885
By Geeta capital A/c 18010
By Ashish capital A/c 14005
179900 179900
Page : 252 , Block Name : Numerical Answer Questions
Q15 Anup and Sumit are equal partners in a firm. They decided to dissolve the partnership on
December 31, 2017. When the balance sheet is as under:
Balance Sheet of Anup and Sumit as on December 31, 2017
Liabilities Amount (Rs.) Assets Amount (Rs.)
Creditors 27,000 Cash at Bank 11,000
Reserve fund 10,000 Sundry debtors 12,000
Loan 40,000 Plant 47,000
Capital’s: Stock 42,000
Anup 60,000 Leasehold land 60,000
Sumit 60,000 1,20,000 Furniture 25,000
Page 36 of 59
To bal b/d 22500 By Realisation 108000
To Realisation (assets) 157400 By Rita capital A/c 39885
By Geeta capital A/c 18010
By Ashish capital A/c 14005
179900 179900
Page : 252 , Block Name : Numerical Answer Questions
Q15 Anup and Sumit are equal partners in a firm. They decided to dissolve the partnership on
December 31, 2017. When the balance sheet is as under:
Balance Sheet of Anup and Sumit as on December 31, 2017
Liabilities Amount (Rs.) Assets Amount (Rs.)
Creditors 27,000 Cash at Bank 11,000
Reserve fund 10,000 Sundry debtors 12,000
Loan 40,000 Plant 47,000
Capital’s: Stock 42,000
Anup 60,000 Leasehold land 60,000
Sumit 60,000 1,20,000 Furniture 25,000
Page 36 of 59
Page 38
Book : Accountancy Part-I Ncert Solutions | Chapter - 5 Accountancy
1,97,000 1,97,000
The Assets were realised as follows:
Rs.
Leasehold land 72,000
Furniture 22,500
Stock 40,500
Plant 48,000
Sundry debtors 10,500
The Creditors were paid Rs.25,500 in full settlement. Expenses of realization amount to
Rs.2,500.
Prepare Realisation Account, Bank Account, Partner’s Capital Accounts to close the books of
the firm.
Answer.
Realisation A/c
Particulars Amount Particulars Amount
₹ ₹
To Sundry debtors 12000 By creditors 27000
To Plants 47000 By Loan 40000
To Stock 42000 By Bank (assets):
To Leasehold land 60000 Leasehold land 72000
Page 37 of 59
1,97,000 1,97,000
The Assets were realised as follows:
Rs.
Leasehold land 72,000
Furniture 22,500
Stock 40,500
Plant 48,000
Sundry debtors 10,500
The Creditors were paid Rs.25,500 in full settlement. Expenses of realization amount to
Rs.2,500.
Prepare Realisation Account, Bank Account, Partner’s Capital Accounts to close the books of
the firm.
Answer.
Realisation A/c
Particulars Amount Particulars Amount
₹ ₹
To Sundry debtors 12000 By creditors 27000
To Plants 47000 By Loan 40000
To Stock 42000 By Bank (assets):
To Leasehold land 60000 Leasehold land 72000
Page 37 of 59
Page 39
Book : Accountancy Part-I Ncert Solutions | Chapter - 5 Accountancy
To Furniture 25000 Furniture 22500
To Bank (creditors) 25500 Stock 40500
To Bank (expenses) 2500 Plant 48000
To Bank (loan) 40000 Debtors 10500 193500
To Profit transferred to
capital A/c:
Anup: 3250
Sumit: 3250 6500
260500 260500
Partner’s capital A/c
Particulars Anup Sumit Particulars Anup Sumit
To Bank A/c 68250 68250 By bal b/d 60000 60000
By Reserve 5000 5000
By profit on 3250 3250
realisation
68250 68250 68250 68250
Bank A/c
Page 38 of 59
To Furniture 25000 Furniture 22500
To Bank (creditors) 25500 Stock 40500
To Bank (expenses) 2500 Plant 48000
To Bank (loan) 40000 Debtors 10500 193500
To Profit transferred to
capital A/c:
Anup: 3250
Sumit: 3250 6500
260500 260500
Partner’s capital A/c
Particulars Anup Sumit Particulars Anup Sumit
To Bank A/c 68250 68250 By bal b/d 60000 60000
By Reserve 5000 5000
By profit on 3250 3250
realisation
68250 68250 68250 68250
Bank A/c
Page 38 of 59
Page 40
Book : Accountancy Part-I Ncert Solutions | Chapter - 5 Accountancy
Particulars Amount Particulars Amount
₹ ₹
To bal b/d 11000 By Realisation (creditors) 25500
To Realisation (assets) 193500 By Realisation (expenses) 2500
By Realisation (loan) 40000
By Anup capital A/c
By Sumit capital A/c
204500 204500
Page : 253 , Block Name : Numerical Answer Questions
Q16 Ashu and Harish are partners sharing profit and losses as 3:2. They decided to dissolve
the firm on December 31, 2017. Their balance sheet on the above date was:
Balance Sheet of Ashu and Harish as on December 31, 2017
Liabilities Amount (Rs.) Assets Amount (Rs.)
Capitals: Building 80,000
Ashu 1,80,000 Machinery 70,000
Harish 54,000 1,62,000 Furniture 14,000
Creditors 88,000 Stock 20,000
Page 39 of 59
Particulars Amount Particulars Amount
₹ ₹
To bal b/d 11000 By Realisation (creditors) 25500
To Realisation (assets) 193500 By Realisation (expenses) 2500
By Realisation (loan) 40000
By Anup capital A/c
By Sumit capital A/c
204500 204500
Page : 253 , Block Name : Numerical Answer Questions
Q16 Ashu and Harish are partners sharing profit and losses as 3:2. They decided to dissolve
the firm on December 31, 2017. Their balance sheet on the above date was:
Balance Sheet of Ashu and Harish as on December 31, 2017
Liabilities Amount (Rs.) Assets Amount (Rs.)
Capitals: Building 80,000
Ashu 1,80,000 Machinery 70,000
Harish 54,000 1,62,000 Furniture 14,000
Creditors 88,000 Stock 20,000
Page 39 of 59
Page 41
Book : Accountancy Part-I Ncert Solutions | Chapter - 5 Accountancy
Bills overdraft 50,000 Investments 60,000
Debtors 48,000
Cash in hand 8,000
3,00,000 3,00,000
Ashu is to take over the building at Rs.95,000 and Machinery and Furniture is take over by
Harish at value of Rs.80,000. Ashu agreed to pay Creditor and Harish agreed to meet Bank
overdraft. Stock and Investments are taken by both partner in profit sharing ratio. Debtors
realised for Rs.46,000, expenses of realisation amounted to Rs.3,000. Prepare necessary
ledger account.
Answer.
Realisation A/c
Particulars Amount Particulars Amount
₹ ₹
To Building 80000 By creditors 38000
To Machinery 70000 By Bank overdraft 30000
To Furniture 14000 By Ashu (building) 95000
To Stock 20000 By Harish (machine & 80000
furniture)
To Investment 60000 By Ashu (stock & 48000
investment)
Page 40 of 59
Bills overdraft 50,000 Investments 60,000
Debtors 48,000
Cash in hand 8,000
3,00,000 3,00,000
Ashu is to take over the building at Rs.95,000 and Machinery and Furniture is take over by
Harish at value of Rs.80,000. Ashu agreed to pay Creditor and Harish agreed to meet Bank
overdraft. Stock and Investments are taken by both partner in profit sharing ratio. Debtors
realised for Rs.46,000, expenses of realisation amounted to Rs.3,000. Prepare necessary
ledger account.
Answer.
Realisation A/c
Particulars Amount Particulars Amount
₹ ₹
To Building 80000 By creditors 38000
To Machinery 70000 By Bank overdraft 30000
To Furniture 14000 By Ashu (building) 95000
To Stock 20000 By Harish (machine & 80000
furniture)
To Investment 60000 By Ashu (stock & 48000
investment)
Page 40 of 59
Page 42
Book : Accountancy Part-I Ncert Solutions | Chapter - 5 Accountancy
To Debtors 48000 By Harish (stock & 32000
investment)
To Ashu (creditors) 88000 By bank ( debtors) 46000
To Harish (overdraft) 50000
To Bank (expenses) 3000
To Profit on realisation:
Ashu: 3600
Harish: 2400 6000
439000 439000
Partner’s capital A/c
Particulars Ashu Harish Particulars Anup Sumit
To Realisation 95000 By bal b/d 108000 54000
To Realisation 80000 By Realisation 88000
(mach. & furn.) (creditors)
To Realisation 48000 32000 By Realisation 50000
To Cash A/c 56600 By Profit 3600 2400
By Cash 5600
Page 41 of 59
To Debtors 48000 By Harish (stock & 32000
investment)
To Ashu (creditors) 88000 By bank ( debtors) 46000
To Harish (overdraft) 50000
To Bank (expenses) 3000
To Profit on realisation:
Ashu: 3600
Harish: 2400 6000
439000 439000
Partner’s capital A/c
Particulars Ashu Harish Particulars Anup Sumit
To Realisation 95000 By bal b/d 108000 54000
To Realisation 80000 By Realisation 88000
(mach. & furn.) (creditors)
To Realisation 48000 32000 By Realisation 50000
To Cash A/c 56600 By Profit 3600 2400
By Cash 5600
Page 41 of 59
Page 43
Book : Accountancy Part-I Ncert Solutions | Chapter - 5 Accountancy
199600 112000 199600 112000
Bank A/c
Particulars Amount Particulars Amount
₹ ₹
To bal b/d 8000 By Realisation (expenses) 3000
To Realisation 46000 By Ashu capital 56600
To Harish capital A/c 5600
59600 59600
Total value of stock and investment = 20,000 + 60,000
= 80,000
\(\therefore\) Share of Ashu \(=\dfrac{3}{5}\times 80000 =48000\)
Share of Harish \(=\dfrac{2}{5}\times 80000=32000\)
Page : 254 , Block Name : Numerical Answer Questions
Q17 Sanjay, Tarun and Vineet shared profit in the ratio of 3:2:1. On December 31,2017 their
balance sheet was as follows :
Balance Sheet of Sanjay, Tarun and Vineet as on December 31, 2017
Page 42 of 59
199600 112000 199600 112000
Bank A/c
Particulars Amount Particulars Amount
₹ ₹
To bal b/d 8000 By Realisation (expenses) 3000
To Realisation 46000 By Ashu capital 56600
To Harish capital A/c 5600
59600 59600
Total value of stock and investment = 20,000 + 60,000
= 80,000
\(\therefore\) Share of Ashu \(=\dfrac{3}{5}\times 80000 =48000\)
Share of Harish \(=\dfrac{2}{5}\times 80000=32000\)
Page : 254 , Block Name : Numerical Answer Questions
Q17 Sanjay, Tarun and Vineet shared profit in the ratio of 3:2:1. On December 31,2017 their
balance sheet was as follows :
Balance Sheet of Sanjay, Tarun and Vineet as on December 31, 2017
Page 42 of 59
Page 44
Book : Accountancy Part-I Ncert Solutions | Chapter - 5 Accountancy
Liabilities Amount Assets Amount
(Rs.) (Rs.)
Capitals: Plant 90,000
Sanjay 1,00,000 Debtors 60,000
Tarun 1,00,000 Furniture 32,000
Vineet 70,000 2,70,000 Stock 60,000
Creditors 80,000 Investments 70,000
Bills payable 30,000 Bills receivable 36,000
Cash in hand 32,000
3,80,000 3,80,000
On this date the firm was dissolved. Sanjay was appointed to realise the assets.
Sanjay was to receive 6% commission on the sale of assets (except cash) and was to bear all
expenses of realisation.
Sanjay realised the assets as follows: Plant Rs.72,000, Debtors Rs.54,000, Furniture
Rs.18,000, Stock 90% of the book value, Investments Rs.76,000 and Bills receivable
Rs.31,000. Expenses of realisation amounted to Rs.4,500.
Prepare Realisation Account, Capital Accounts and Cash Account.
Answer.
Realisation A/c
Page 43 of 59
Liabilities Amount Assets Amount
(Rs.) (Rs.)
Capitals: Plant 90,000
Sanjay 1,00,000 Debtors 60,000
Tarun 1,00,000 Furniture 32,000
Vineet 70,000 2,70,000 Stock 60,000
Creditors 80,000 Investments 70,000
Bills payable 30,000 Bills receivable 36,000
Cash in hand 32,000
3,80,000 3,80,000
On this date the firm was dissolved. Sanjay was appointed to realise the assets.
Sanjay was to receive 6% commission on the sale of assets (except cash) and was to bear all
expenses of realisation.
Sanjay realised the assets as follows: Plant Rs.72,000, Debtors Rs.54,000, Furniture
Rs.18,000, Stock 90% of the book value, Investments Rs.76,000 and Bills receivable
Rs.31,000. Expenses of realisation amounted to Rs.4,500.
Prepare Realisation Account, Capital Accounts and Cash Account.
Answer.
Realisation A/c
Page 43 of 59
Page 45
Book : Accountancy Part-I Ncert Solutions | Chapter - 5 Accountancy
Particulars Amount Particulars Amount
₹ ₹
To Plant 90000 By creditors 80000
To Debtors 60000 By Bank payable 30000
To Furniture 32000 By Cash (assets):
To Stock 60000 Plant 72000
To Investment 70000 Debtors 54000
To Bills receivable 36000 Furniture 18000
To Cash (expenses) 4500 Stock 54000
To Cash: Investment 76000
Creditors 80000 Bills receivable 31000 305000
Bills payable 30000 110000 Loss transferred to:
To Sanjay capital A/c (6% 18300 Sanjay: 30650
on 305000)
Tarun: 20433
Vineet: 10217 61300
476300 476300
Page 44 of 59
Particulars Amount Particulars Amount
₹ ₹
To Plant 90000 By creditors 80000
To Debtors 60000 By Bank payable 30000
To Furniture 32000 By Cash (assets):
To Stock 60000 Plant 72000
To Investment 70000 Debtors 54000
To Bills receivable 36000 Furniture 18000
To Cash (expenses) 4500 Stock 54000
To Cash: Investment 76000
Creditors 80000 Bills receivable 31000 305000
Bills payable 30000 110000 Loss transferred to:
To Sanjay capital A/c (6% 18300 Sanjay: 30650
on 305000)
Tarun: 20433
Vineet: 10217 61300
476300 476300
Page 44 of 59
Page 46
Book : Accountancy Part-I Ncert Solutions | Chapter - 5 Accountancy
Partner’s capital A/c
Particulars Sanjay Tarun Vineet Particulars Sanjay Tarun Vineet
To 30650 20433 10217 By bal b/d 100000 100000 54000
Realisation
(loss)
To Cash A/c 87650 79567 59783 By Realisation 18300
(commission)
118300 100000 70000 118300 100000 70000
Cash A/c
Particulars Amount Particulars Amount
₹ ₹
To bal b/d 32000 By Realisation 110000
To Realisation (assets) 305000 By Sanjay capital 87650
By Tarun capital 79567
By Vineet capital 59783
337000 337000
Page : 254 , Block Name : Numerical Answer Questions
Q18 The following is the Balance Sheet of Gupta and Sharma as on December 31,2017:
Page 45 of 59
Partner’s capital A/c
Particulars Sanjay Tarun Vineet Particulars Sanjay Tarun Vineet
To 30650 20433 10217 By bal b/d 100000 100000 54000
Realisation
(loss)
To Cash A/c 87650 79567 59783 By Realisation 18300
(commission)
118300 100000 70000 118300 100000 70000
Cash A/c
Particulars Amount Particulars Amount
₹ ₹
To bal b/d 32000 By Realisation 110000
To Realisation (assets) 305000 By Sanjay capital 87650
By Tarun capital 79567
By Vineet capital 59783
337000 337000
Page : 254 , Block Name : Numerical Answer Questions
Q18 The following is the Balance Sheet of Gupta and Sharma as on December 31,2017:
Page 45 of 59
Page 47
Book : Accountancy Part-I Ncert Solutions | Chapter - 5 Accountancy
Balance Sheet of Gupta and Sharma as on December 31, 2017
Liabilities Amount Assets Amount
(Rs.) (Rs.)
Creditors 38,000 Cash at Bank 12,500
Reserve fund 20,000 Sundry debtors 55,000
Mrs. Gupta’s loan 30,000 Stock 44,000
Mrs. Sharma’s loan 6,000 Bills receivable 19,000
Provision of doubtful debts 4,000 Machinery 52,000
Capital’s: Investment 38,500
Gupta 90,000 Fixtures 27,000
Sharma 60,000 1,50,000
2,48,000 2,48,000
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
Page 46 of 59
Balance Sheet of Gupta and Sharma as on December 31, 2017
Liabilities Amount Assets Amount
(Rs.) (Rs.)
Creditors 38,000 Cash at Bank 12,500
Reserve fund 20,000 Sundry debtors 55,000
Mrs. Gupta’s loan 30,000 Stock 44,000
Mrs. Sharma’s loan 6,000 Bills receivable 19,000
Provision of doubtful debts 4,000 Machinery 52,000
Capital’s: Investment 38,500
Gupta 90,000 Fixtures 27,000
Sharma 60,000 1,50,000
2,48,000 2,48,000
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
Page 46 of 59
Page 48
Book : Accountancy Part-I Ncert Solutions | Chapter - 5 Accountancy
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.
% discount.
(c) The Sundry Creditors were paid off less 3
(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.
Answer.
Journal entries
Particulars L/F Dr Amount Cr Amount
₹ ₹
i) Realisation A/c Dr 235000
To Sundry debtors A/c 55000
To Stock A/c 44000
To Bills receivable A/c 19000
To Machinery A/c 52000
To Investment A/c 38500
To Fixtures A/c 27000
(Being assets transferred to realisation)
Page 47 of 59
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.
% discount.
(c) The Sundry Creditors were paid off less 3
(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.
Answer.
Journal entries
Particulars L/F Dr Amount Cr Amount
₹ ₹
i) Realisation A/c Dr 235000
To Sundry debtors A/c 55000
To Stock A/c 44000
To Bills receivable A/c 19000
To Machinery A/c 52000
To Investment A/c 38500
To Fixtures A/c 27000
(Being assets transferred to realisation)
Page 47 of 59
Page 49
Book : Accountancy Part-I Ncert Solutions | Chapter - 5 Accountancy
ii) Sundry creditors A/c Dr 38000
Mrs. Gupta loan A/c Dr 20000
Mrs. Sharma loan A/c Dr 30000
Provision for doubtful debt A/c Dr 4000
To Realisation A/c 92000
(Being liabilities transferred to
realisation A/c)
iii) Bank A/c Dr 159000
To Realisation A/c 159000
(Being assets realised)
iv) Realisation A/c Dr 20000
To Gupta capital A/c 20000
(Being Mrs.Gupta loan settled by Gupta)
v) Gupta capital A/c Dr 36000
To Realisation A/c 36000
(Being investment taken by Gupta)
vi) Realisation A/c Dr 66860
To Bank A/c 66860
(Being creditors and liabilities paid)
Page 48 of 59
ii) Sundry creditors A/c Dr 38000
Mrs. Gupta loan A/c Dr 20000
Mrs. Sharma loan A/c Dr 30000
Provision for doubtful debt A/c Dr 4000
To Realisation A/c 92000
(Being liabilities transferred to
realisation A/c)
iii) Bank A/c Dr 159000
To Realisation A/c 159000
(Being assets realised)
iv) Realisation A/c Dr 20000
To Gupta capital A/c 20000
(Being Mrs.Gupta loan settled by Gupta)
v) Gupta capital A/c Dr 36000
To Realisation A/c 36000
(Being investment taken by Gupta)
vi) Realisation A/c Dr 66860
To Bank A/c 66860
(Being creditors and liabilities paid)
Page 48 of 59
Page 50
Book : Accountancy Part-I Ncert Solutions | Chapter - 5 Accountancy
vii) Realisation A/c Dr 1200
To Bank A/c 1200
(Being realisation expenses)
viii) Gupta Capital A/c Dr 18280
Sharma capital A/c Dr 18280
To Realisation A/c 36560
(Being loss on realisation transferred to
partners)
ix) Reserve fund A/c Dr 6000
To Gupta capital A/c 3000
To Sharma capital A/c 3000
(Being reserves transferred to partner’s
A/c)
x) Gupta capital A/c Dr 58720
Sharma capital A/c Dr 44720
To Bank A/c 103440
(Being partners paid off)
Realisation A/c
Particulars Amount Particulars Amount
₹ ₹
Page 49 of 59
vii) Realisation A/c Dr 1200
To Bank A/c 1200
(Being realisation expenses)
viii) Gupta Capital A/c Dr 18280
Sharma capital A/c Dr 18280
To Realisation A/c 36560
(Being loss on realisation transferred to
partners)
ix) Reserve fund A/c Dr 6000
To Gupta capital A/c 3000
To Sharma capital A/c 3000
(Being reserves transferred to partner’s
A/c)
x) Gupta capital A/c Dr 58720
Sharma capital A/c Dr 44720
To Bank A/c 103440
(Being partners paid off)
Realisation A/c
Particulars Amount Particulars Amount
₹ ₹
Page 49 of 59
Page 51
Book : Accountancy Part-I Ncert Solutions | Chapter - 5 Accountancy
To Sundry debtors 55000 By Sundry creditors 88000
To Stock A/c 44000 By Mrs. Gupta loan 20000
To Bills receivable 19000 By Mrs. Sharma loan 30000
To Machinery A/c 52000 By Provision for doubtful 4000
debts
To Investment 38500 By Bank A/c (assets):
To Fixtures A/c 27000 Sundry debtor 18000
To Gupta’s capital (Mrs. 20000 Stock 54000
Gupta loan)
To Bank A/c (creditor) 36860 Bills receivable 76000
To Bank A/c (Mrs. 30000 Machinery 31000 159000
Sharma’s loan)
To Bank A/c (expenses) 1200 By Gupta capital 36000
By loss transferred
Gupta: 18280
Sharma: 18280 36560
323560 323560
Partner’s capital A/c
Page 50 of 59
To Sundry debtors 55000 By Sundry creditors 88000
To Stock A/c 44000 By Mrs. Gupta loan 20000
To Bills receivable 19000 By Mrs. Sharma loan 30000
To Machinery A/c 52000 By Provision for doubtful 4000
debts
To Investment 38500 By Bank A/c (assets):
To Fixtures A/c 27000 Sundry debtor 18000
To Gupta’s capital (Mrs. 20000 Stock 54000
Gupta loan)
To Bank A/c (creditor) 36860 Bills receivable 76000
To Bank A/c (Mrs. 30000 Machinery 31000 159000
Sharma’s loan)
To Bank A/c (expenses) 1200 By Gupta capital 36000
By loss transferred
Gupta: 18280
Sharma: 18280 36560
323560 323560
Partner’s capital A/c
Page 50 of 59
Page 52
Book : Accountancy Part-I Ncert Solutions | Chapter - 5 Accountancy
Particulars Gupta Sharma Particulars Gupta Sharma
To Realisation By bal b/d 90000 60000
To Realisation 18280 18280 By Realisation 20000
(loss) A/c
To Cash A/c 58720 44720 By Reserve A/c 3000 3000
113000 63000 113000 63000
Bank A/c
Particulars Amount Particulars Amount
₹ ₹
To bal b/d 12500 By Realisation (creditors) 36860
To Realisation (assets) 159000 By Realisation (Mrs. 30000
Sharma loan)
By Realisation (expenses) 1200
By Gupta capital A/c 58720
By Sharma capital A/c 44720
171500 171500
Page : 255 , Block Name : Numerical Answer Questions
Page 51 of 59
Particulars Gupta Sharma Particulars Gupta Sharma
To Realisation By bal b/d 90000 60000
To Realisation 18280 18280 By Realisation 20000
(loss) A/c
To Cash A/c 58720 44720 By Reserve A/c 3000 3000
113000 63000 113000 63000
Bank A/c
Particulars Amount Particulars Amount
₹ ₹
To bal b/d 12500 By Realisation (creditors) 36860
To Realisation (assets) 159000 By Realisation (Mrs. 30000
Sharma loan)
By Realisation (expenses) 1200
By Gupta capital A/c 58720
By Sharma capital A/c 44720
171500 171500
Page : 255 , Block Name : Numerical Answer Questions
Page 51 of 59
Page 53
Book : Accountancy Part-I Ncert Solutions | Chapter - 5 Accountancy
Q19 Ashok, Babu and Chetan are in partnership sharing profit in the proportion of
\(\dfrac{1}{2},\dfrac{1}{3},\dfrac{1}{6}\) respectively. They dissolve the partnership of the
December 31, 2017, when the balance sheet of the firm as under:
Balance Sheet of Ashok, Babu and Chetan as on December 31, 2017
Liabilities Amount (Rs.) Assets Amount
(Rs.)
Sundry creditors 20,000 Bank 7500
Bills payable 25,500 Debtors 58,000
Babu’s loan 30,000 Stock 39,500
Capital’s: Machinery 48,000
Ashok 70,000 Investments 42,000
Babu 55,000 Freehold properties 50,500
Chetan 27,000 1,52,000
Current accounts:
Ashok 10,000
Babu 5,000
Chetan 3,000
2,45,500 2,45,500
Page 52 of 59
Q19 Ashok, Babu and Chetan are in partnership sharing profit in the proportion of
\(\dfrac{1}{2},\dfrac{1}{3},\dfrac{1}{6}\) respectively. They dissolve the partnership of the
December 31, 2017, when the balance sheet of the firm as under:
Balance Sheet of Ashok, Babu and Chetan as on December 31, 2017
Liabilities Amount (Rs.) Assets Amount
(Rs.)
Sundry creditors 20,000 Bank 7500
Bills payable 25,500 Debtors 58,000
Babu’s loan 30,000 Stock 39,500
Capital’s: Machinery 48,000
Ashok 70,000 Investments 42,000
Babu 55,000 Freehold properties 50,500
Chetan 27,000 1,52,000
Current accounts:
Ashok 10,000
Babu 5,000
Chetan 3,000
2,45,500 2,45,500
Page 52 of 59
Page 54
Book : Accountancy Part-I Ncert Solutions | Chapter - 5 Accountancy
The machinery was taken over by Babu for Rs.45,000, Ashok took over the Investment for
Rs.40,000 and Freehold property took over by Chetan at Rs.55,000. The remaining Assets
realised as follows: Sundry Debtors Rs.56,500 and Stock Rs.36,500. Sundry Creditors were
settled at discount of 7%. A Office computer, not shown in the books of accounts realised
Rs.9,000. Realisation expenses amounted to Rs.3,000.
Prepare Realisation Account, Partners Capital Account, Bank Account.
Answer.
Realisation A/c
Particulars Amount Particulars Amount
₹ ₹
To Sundry debtors 58000 By Sundry creditors 20000
To Stock A/c 39500 By Bills payable 25500
To Machinery A/c 48000 By Babu current 45000
(machinery)
To Investment A/c 42000 By Ashok current 40000
(Investment)
To Freehold property 50500 By Chetan current (freehold 55000
property)
To Bank (creditors) 18600 By Bank (assets):
To Bank (expenses) 3000 Debtors: 56500
To Bank (bills payable) 25500 Stock: 36500 93000
Page 53 of 59
The machinery was taken over by Babu for Rs.45,000, Ashok took over the Investment for
Rs.40,000 and Freehold property took over by Chetan at Rs.55,000. The remaining Assets
realised as follows: Sundry Debtors Rs.56,500 and Stock Rs.36,500. Sundry Creditors were
settled at discount of 7%. A Office computer, not shown in the books of accounts realised
Rs.9,000. Realisation expenses amounted to Rs.3,000.
Prepare Realisation Account, Partners Capital Account, Bank Account.
Answer.
Realisation A/c
Particulars Amount Particulars Amount
₹ ₹
To Sundry debtors 58000 By Sundry creditors 20000
To Stock A/c 39500 By Bills payable 25500
To Machinery A/c 48000 By Babu current 45000
(machinery)
To Investment A/c 42000 By Ashok current 40000
(Investment)
To Freehold property 50500 By Chetan current (freehold 55000
property)
To Bank (creditors) 18600 By Bank (assets):
To Bank (expenses) 3000 Debtors: 56500
To Bank (bills payable) 25500 Stock: 36500 93000
Page 53 of 59
Page 55
Book : Accountancy Part-I Ncert Solutions | Chapter - 5 Accountancy
To Profit on realization: By Bank (computer) 9000
Ashok current A/c 1200
Babu current A/c 800
Chetan current A/c 400
287500 287500
Partner’s current A/c
Particulars Ashok Babu Chetan Particulars Ashok Babu Chetan
To 40000 45000 55000 By bal b/d 10000 5000 3000
Realisation
By Profit on 1200 800 400
realisation
By Capital 28800 39200 51600
A/c
40000 45000 55000 40000 45000 55000
Partner’s capital A/c
Particulars Ashok Babu Chetan Particulars Ashok Babu Chetan
To Ashok 28800 By bal b/d 70000 15000 27000
current A/c
Page 54 of 59
To Profit on realization: By Bank (computer) 9000
Ashok current A/c 1200
Babu current A/c 800
Chetan current A/c 400
287500 287500
Partner’s current A/c
Particulars Ashok Babu Chetan Particulars Ashok Babu Chetan
To 40000 45000 55000 By bal b/d 10000 5000 3000
Realisation
By Profit on 1200 800 400
realisation
By Capital 28800 39200 51600
A/c
40000 45000 55000 40000 45000 55000
Partner’s capital A/c
Particulars Ashok Babu Chetan Particulars Ashok Babu Chetan
To Ashok 28800 By bal b/d 70000 15000 27000
current A/c
Page 54 of 59
Page 56
Book : Accountancy Part-I Ncert Solutions | Chapter - 5 Accountancy
To Babu 39200 By bank A/c 24600
current A/c
To Chetan 51600
current A/c
To Bank A/c 41200 15800
70000 55000 51600 70000 55000 51600
Babu loan A/c
Particulars Amount Particulars Amount
₹ ₹
To Bank A/c 30000 By bal b/d 30000
30000 30000
Bank A/c
Particulars Amount Particulars Amount
To bal b/d 7500 By Realisation A/c 47100
To Realisation A/c (assets) 102000 By Babu loan 30000
To Chetan capital 24600 By Ashok capital 41200
By Babu capital 15800
Page 55 of 59
To Babu 39200 By bank A/c 24600
current A/c
To Chetan 51600
current A/c
To Bank A/c 41200 15800
70000 55000 51600 70000 55000 51600
Babu loan A/c
Particulars Amount Particulars Amount
₹ ₹
To Bank A/c 30000 By bal b/d 30000
30000 30000
Bank A/c
Particulars Amount Particulars Amount
To bal b/d 7500 By Realisation A/c 47100
To Realisation A/c (assets) 102000 By Babu loan 30000
To Chetan capital 24600 By Ashok capital 41200
By Babu capital 15800
Page 55 of 59
Page 57
Book : Accountancy Part-I Ncert Solutions | Chapter - 5 Accountancy
134100 134100
Page : 255 , Block Name : Numerical Answer Questions
Q20 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.
Balance Sheet of Tanu and Manu as on December 31, 2017
Liabilities Amount (Rs.) Assets Amount (Rs.)
Sundry creditors 62,000 Cash at bank 16,000
Bills payable 32,000 Debtors 55,000
Bank loan 50,000 Stock 75,000
Reserve fund 16,000 Motor car 90,000
Capital: Machinery 45,000
Tanu 1,10,000 Investment 70,000
Manu 90,000 2,00,000 Fixtures 9,000
3,60,000 3,60,000
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
realized Rs.76,000 and fixtures Rs.4,000. The expenses of dissolution amounted to Rs.2,200.
Page 56 of 59
134100 134100
Page : 255 , Block Name : Numerical Answer Questions
Q20 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.
Balance Sheet of Tanu and Manu as on December 31, 2017
Liabilities Amount (Rs.) Assets Amount (Rs.)
Sundry creditors 62,000 Cash at bank 16,000
Bills payable 32,000 Debtors 55,000
Bank loan 50,000 Stock 75,000
Reserve fund 16,000 Motor car 90,000
Capital: Machinery 45,000
Tanu 1,10,000 Investment 70,000
Manu 90,000 2,00,000 Fixtures 9,000
3,60,000 3,60,000
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
realized Rs.76,000 and fixtures Rs.4,000. The expenses of dissolution amounted to Rs.2,200.
Page 56 of 59
Page 58
Book : Accountancy Part-I Ncert Solutions | Chapter - 5 Accountancy
Prepare Realisation Account, Bank Account and Partners Capital Accounts.
Answer.
Realisation A/c
Particulars Amount Particulars Amount
₹ ₹
To Sundry debtors 55000 By Sundry creditors 62000
To Stock A/c 75000 By Bills payable 32000
To Motor car A/c 90000 By Bank loan 50000
To Machinery A/c 45000 By Tanu capital (sundry 55000
debtors)
To Investment A/c 70000 By Bank A/c (stock) 10000
To Fixtures A/c 9000 By Manu capital 40000
(machinery)
To Manu capital (Bills 30400 By Tanu capital (motor car) 60000
payable)
To Bank A/c (expenses) 2200 By Bank:
To Tanu capital A/c ( 50000 Investment: 76000
bank loan)
Fixtures: 4000 80000
Page 57 of 59
Prepare Realisation Account, Bank Account and Partners Capital Accounts.
Answer.
Realisation A/c
Particulars Amount Particulars Amount
₹ ₹
To Sundry debtors 55000 By Sundry creditors 62000
To Stock A/c 75000 By Bills payable 32000
To Motor car A/c 90000 By Bank loan 50000
To Machinery A/c 45000 By Tanu capital (sundry 55000
debtors)
To Investment A/c 70000 By Bank A/c (stock) 10000
To Fixtures A/c 9000 By Manu capital 40000
(machinery)
To Manu capital (Bills 30400 By Tanu capital (motor car) 60000
payable)
To Bank A/c (expenses) 2200 By Bank:
To Tanu capital A/c ( 50000 Investment: 76000
bank loan)
Fixtures: 4000 80000
Page 57 of 59
Page 59
Book : Accountancy Part-I Ncert Solutions | Chapter - 5 Accountancy
By loss transferred to
capital A/c:
Tanu capital: 23500
Manu capital: 14100 37600
426600 426600
Partner’s capital A/c
Particulars Tanu Manu Particulars Tanu Manu
To Realisation 115000 40000 By bal b/d 110000 90000
(assets)
To Realisation 23500 14100 By Realisation 50000 30400
(loss)
To Cash A/c 31500 72300 By Reserve fund 10000 6000
170000 126400 170000 126400
Bank A/c
Particulars Amount Particulars Amount
₹ ₹
To bal b/d 16000 By Realisation (expenses) 2200
To Realisation 80000 By Tanu capital 31500
Page 58 of 59
By loss transferred to
capital A/c:
Tanu capital: 23500
Manu capital: 14100 37600
426600 426600
Partner’s capital A/c
Particulars Tanu Manu Particulars Tanu Manu
To Realisation 115000 40000 By bal b/d 110000 90000
(assets)
To Realisation 23500 14100 By Realisation 50000 30400
(loss)
To Cash A/c 31500 72300 By Reserve fund 10000 6000
170000 126400 170000 126400
Bank A/c
Particulars Amount Particulars Amount
₹ ₹
To bal b/d 16000 By Realisation (expenses) 2200
To Realisation 80000 By Tanu capital 31500
Page 58 of 59
Page 60
Book : Accountancy Part-I Ncert Solutions | Chapter - 5 Accountancy
To Realisation (stock) 10000 By Manu capital 72300
106000 106000
Page : 256 , Block Name : Numerical Answer Questions
Page 59 of 59
To Realisation (stock) 10000 By Manu capital 72300
106000 106000
Page : 256 , Block Name : Numerical Answer Questions
Page 59 of 59
Document Details
| Board / Org | NCERT |
| Exam | Class 12 |
| Type | Solution |
| Pages | 60 |
| Updated | 30 Apr 2026 |