15th â ‹Q15 Hema and Garima were partners in a firm sharing profit in the ratio of 3 - Accountancy - Dissolution of Partnership Firm

Question

15th

â€‹Q15 Hema and Garima were partners in a firm
sharing profit in the ratio of 3 : 2 On March 31,2015, their
Balance Sheet was as following :

Balance Sheet of Hema and Garima
As at March 31, 2015

Liabilities
Rs
Assets
Rs

Creditors
Garima's Husband's Loan
Hema's Loan
Capitals:
Hema 2,00,000
Garima 1,00,000
36,000
60,000
40,000

3,00,000
Bank
Debtors
Stock
Furniture
Leasehold premises
40 000
76,000
2,00,000
20,000
1,00,000

4,36,000

On the above data the firm was dissolved The various assets were
realized and liabilities were settled as under :

(i) Garima agreed to pay her husband's loan

(ii) Leasehold premises realized Rs 1,50,000 and debtors Rs 2,000
less

(iii) Half the creditors agreed to accept furniture of the firm as
full settlement of their claim and remaining half agreed to accept
5% less

(iv) 50% stock was taken over by Hema on cash payment of Rs 90,000
and remaining stock was sold for Rs 94,000

(v) Realisation expenses of Rs 10,000 were paid by Garima on behalf
of firm

(vi) pass necessary journal entries for the dissolution of the firm

Neha Chopra · Accepted Answer

Dear Student,

Journal entries are as follows:

Date
Particulars

LF

Amount (in Rs)

Creditors
A/c
Dr
36,000

Garima's Husband's
Loan A/c
Dr
60,000

To Realisation
A/c

96,000

(Liabilities
transferred to Realisation A/c)

Realisation
A/c
Dr
396,000

To Debtors
A/c

76,000

To Stock
A/c

200,000

To Furniture
A/c

20,000

To Leasehold Premises
A/c

100,000

(Assets transferred to
Realisation A/c)

Bank
A/c
Dr
224,000

To Realisation A/c
(1,50,000+74,000)

224,000

(Amount realised on
Leasehold Premises & Debtors)

Realisation
A/c
Dr
60,000

To Garima's Capital
A/c

60,000

(Garima agreed to
repay her husband's loan)

Realisation A/c
(Creditors)
Dr
35,100

To Realisation A/c
(Furniture) (50% of creditors)

18,000

To Bank A/c
(36,000*50%*95%)

17,100

(Creditors
Realised)

Bank A/c
(90,000+94,000)
Dr
184,000

To Realisation A/c
(Stock)

184,000

(Stock
Realised)

Realisation
A/c
Dr
10,000

To Garima's Capital
A/c

10,000

(Realisation exps paid
by Garima on Firm's behalf)

Regards,

Liabilities	Rs.	Assets	Rs.
Creditors Garima's Husband's Loan Hema's Loan Capitals: Hema 2,00,000 Garima 1,00,000	36,000 60,000 40,000 3,00,000	Bank Debtors Stock Furniture Leasehold premises	40.000 76,000 2,00,000 20,000 1,00,000
	4,36,000		4,36,000

Date	Particulars	LF	Amount (in Rs)	Amount (in Rs)
	Creditors A/c	Dr	36,000
	Garima's Husband's Loan A/c	Dr	60,000
	To Realisation A/c			96,000
	(Liabilities transferred to Realisation A/c)

	Realisation A/c	Dr	396,000
	To Debtors A/c			76,000
	To Stock A/c			200,000
	To Furniture A/c			20,000
	To Leasehold Premises A/c			100,000
	(Assets transferred to Realisation A/c)

	Bank A/c	Dr	224,000
	To Realisation A/c (1,50,000+74,000)			224,000
	(Amount realised on Leasehold Premises & Debtors)

	Realisation A/c	Dr	60,000
	To Garima's Capital A/c			60,000
	(Garima agreed to repay her husband's loan)

	Realisation A/c (Creditors)	Dr	35,100
	To Realisation A/c (Furniture) (50% of creditors)			18,000
	To Bank A/c (36,00050%95%)			17,100
	(Creditors Realised)

	Bank A/c (90,000+94,000)	Dr	184,000
	To Realisation A/c (Stock)			184,000
	(Stock Realised)

	Realisation A/c	Dr	10,000
	To Garima's Capital A/c			10,000
	(Realisation exps paid by Garima on Firm's behalf)