The assets were realised and the liabilities were paid as under:
(i) Arnab agreed to pay his brother's loan.
(ii) Investments realised 20% less.
(iii) Creditors were paid at 10% less.
(iv) Building was auctioned for Rs.. 3,55,000 Commission on auction was 5,000/ -.
(V) 50% of the stock was taken over by Ragini at market price which was 20% less than
book value and the remaining was sold at market price.
(vi) Dissolution expenses were Rs.. 8,000. Rs. 3,000 were to be borne by the firm and the balance
by Dhrupad. The expenses were paid by him.
Realisation Account, Bank Account and Partners' Capital Accounts.
Other Sudry Assets
Furniture
Books Debts 1,24,200
Less: proision for D.D. ( 1,200)
Stock
Cash
1,17,000
11,000
1,23,000
17,800
13,200
2,82,000
2,82,000
It was agreed that.
a) X to take over fumiture at Rs.8,000 and debtors amounting to Rs. 1,20,000 at 1,17,200 and the creditors of Rs.16,000 were to be paid by him at this figure.
b) Y is to take over all the stock for Rs. 17,000 and some sundry assets at Rs.72,000 ( being 10% less than the book value)
c) Z to take over remaining sundry assets at 80% of the book value ands assume the responsibility of discharge of Bank overdraft together with accrued interest of Rs.2,300.
d) The expense of realization were Rs.2,700 which were to be borne by X. But was paid by the firm.
e) The remaining debtors were sold to a debt collecting agency at 50% of the value.
Prepare necessary ledger accounts to close the books of the firm.
What is a Realisation Account?
do we distribute employee provident fund to partners at the time of :
1. admission/ retirement
2. dissolution( is it treated the same way as reserve fund ?)
in dissolution , what is the accounting treatment of loan , which appear in the question`s balance sheet ?
experts please tell me the treatment of workmen compensation reserve/fund and employees provident fund in the dissolution chapter
how to treat joint life policy in dissolution of partnership when surrender value is given ?
State the difference between dissolution of partnership and dissolution of partnership firm.
The assets were realised and the liabilities were paid as under:
(i) Arnab agreed to pay his brother's loan.
(ii) Investments realised 20% less.
(iii) Creditors were paid at 10% less.
(iv) Building was auctioned for Rs.. 3,55,000 Commission on auction was 5,000/ -.
(V) 50% of the stock was taken over by Ragini at market price which was 20% less than
book value and the remaining was sold at market price.
(vi) Dissolution expenses were Rs.. 8,000. Rs. 3,000 were to be borne by the firm and the balance
by Dhrupad. The expenses were paid by him.
Realisation Account, Bank Account and Partners' Capital Accounts.
report on procedure of winding up partnership firm
MG Rathi
Distinguish between firm’s debts and partner’s private debts.
Why investment fluctuation reserve is not credited to partner's capital a/c in case of dissolution of firm?
plz provide me a solution of divya sharma vk pulisher of accountancy class 12
and
solution of vk ohri and tr jain of economics class 12
diffrence between memorandum balancesheet and balance sheet
What is the journal entry for advertisement suspense account amounted to rs. 28000 which is shown in the asset side of the balance of the balance sheet??
The following is the balance sheet of A and B as at 31st March, 2014:
liabilities:-
Mrs. A's Loan - 15000
Mrs. B' Loan - 10000
Trade Creditors - 30000
Bills Payable - 10000
Outstanding Expenses - 5000
A: Capital - 100000
B: Capital - 80000
Total= 250000
Assets:-
Cash - 4200
Bank - 3400
Debtors: 30000
Less: Provision - 2000
Investments - 10000
Stock - 40000
Truck - 75000
Plant and Machinery - 80000
B : Drawings - 9400
Total 250000
Adjustments---
1) Half of the stock was sold at 10% less than the book value and the remaining half was taken over by A at 20% more than the book value.
2) During the course of dissolution a liability under action for damages was settled at 12000 against 10000 included in the creditors.
3) Assets realised as follows-
Plant machinery- 100000 ; Truck-120000; Goodwill was sold for 25000 ; Bad Debts amounted to 5000 ; Half the investments were sold at book value.
4) A promised to pay off Mrs.A's Loan and took away half the investments at 10% discount.
5) Trade Creditors and Bills Payable were due on average basis of one month after 31st march, but were paid immediately on 31st march, at 12% discount p.a.
Prepare Necessary Accounts
pass the journal entries at the time of dissolution of firm :
(a). ramesh, a partner was paid remuneration of rs.25000 and he was to meet all expenses.
(b). anuj , a partner was paid remuneration of rs.20000 and he was to meet all expenses. firm paid an expense of rs.5000.
(c). realisation expenses amounted to rs.10000 were paid by the firm on behalf of alok, a partner, with whom it was agreed at rs.7500.
(d). realisation expenses amounted to rs. 5000. it was agreed that firm will pay rs.2000 and balance by ravinder , a partner.
(e). realisation expenses amounted to rs.15000. the firm had agreed with amrit , a partner, to reimburse him upto rs.10000
Explain the process of dissolution of a partnership firm?
State the accounting treatment for:
i. Unrecorded assets
ii. Unrecorded liabilities
nature of realisation account is nomial i know but my teacher is notaccepted.it is real nature why why....
why prepaid expenses appear in realisation accounts as it cannot be realised?
WHEN A LIABILITY IS TO BE DISCHARGED BY A PARTNER WHY IS HIS CAPITAL ACCOUNT CREDITED?
A firm is dissolved. building is auctioned, and auctioneer's commission is 1000. How will auctioneer's commission be treated?
1-In the notes of (chapter-retirement and death of a partner) it is written that if there is no adjustment related to WCF, IFF, contingency reserves, then they will not be trahferred to partner's capital account and will be shown in balance sheet. please tell what's the logic behind it?
What is the treatment of deferred revenue expenditure at the time of dissolution of a partnership firm?
please help me with the different cases of realisation expenses...grrhh m confused...
dk goel dissolution q48
how to calculate realisation a/c??? any easy method to keep in our memory in dissoution of partnership firm
in dissolution when realisation expenses are to be borne by a partner for which he is given commission amount is given and the actual expenses are also given the comission amount will be debited to realisation a/c and how will the actual expenses be shown?
what is the treatment of investment fluctuation fund in dissolution of a firm??
how are unrecorded assets treated in realisation account?
what is treatment of partner"s commission in dissolution of firm
If workman compensation claim appears in balance sheet, what will be its treatment on dissolution?
Shilpa,Meena and Nanda decided to dissolve their partnershipon March 31,2006. Their profit sharing ratio was 3:2:1and their Balance Sheet was as under:
Balance Sheet of Shilpa, Meena and Nanda as on March 31, 2006
Liabilities
Amount
Rs
Assets
Amount
Rs
Capitals:
Land
81,000
Shilpa
80,000
Stock
56,760
Meena
40,000
Debtors
18,600
Bank loan
20,000
Nanda’s Capital Account
23,000
Creditors
37,000
Cash
10,840
Provision for doubtful debts
1,200
General Reserve
12,000
1,90,200
1,90,200
Thestock of value of Rs 41,660 are taken over by Shilpa for Rs 35,000 and she agreed to discharge bank loan.The remaining stock was sold at Rs 14,000 and debtors amounting to Rs 10,000 realised Rs 8,000. land is soldfor Rs 1,10,000. The remaining debtors realised 50%at their book value. Cost of Realisation amounted toRs 1,200. There was a typewriter not recorded in the books worth Rs 6,000 whichwere taken over by one of the Creditors at this value. Prepare Realisation Account.
Journal entry for payment of unrecorded liabilities in cash is given as-
Cash/Bank A/c Dr.
To Realisation A/c
The same entry is given for the recording of the sale of unrecorded assets. Why is it so?
LIABILITIES
Ramji Capital 16000 Panna capital 10000 Reserve 3600 Creditors 5400 b/p 2600
ASSETS
Goodwill 4000 Machinery 6000 Plant 12800
Debtor 10800
Less provision 800 = 10000
Bank 4800
They decided to dissolve the firm
Asset realised as follow
Machinery 10% less than book value . plant 12000 godwill 2520
Ramji is to take over debtor amounting to 6800 at 6000,remaining debtor were realised for 90% of the book value
One bill of 600 under discount having been dishonoured had to be taken up by them(explain clearly in wn)
The bp of 2600 to be assumed by panna at that figure
Creditors are paid off at discount of 10% the liquidation expenses amounted to 400
Prepare realisation partner capital and cash a/c
Q. X, Y and Z were partners sharing profits in the ratio 2 : 2 : 1. their balance sheet as on 31st March, 2010, when they dissolved the firm was as follows :
x
y
z
Ban Overdraft
Creaditor
1,27,500
1,10,000
17,000
11,500
16,00
Furniture
Books Debts 1,24,200
Less: proision for D.D. ( 1,200)
Stock
Cash
11,000
1,23,000
17,800
13,200
a) X to take over fumiture at Rs.8,000 and debtors amounting to Rs. 1,20,000 at 1,17,200 and the creditors of Rs.16,000 were to be paid by him at this figure.
b) Y is to take over all the stock for Rs. 17,000 and some sundry assets at Rs.72,000 ( being 10% less than the book value)
c) Z to take over remaining sundry assets at 80% of the book value ands assume the responsibility of discharge of Bank overdraft together with accrued interest of Rs.2,300.
d) The expense of realization were Rs.2,700 which were to be borne by X. But was paid by the firm.
e) The remaining debtors were sold to a debt collecting agency at 50% of the value.
Prepare necessary ledger accounts to close the books of the firm.