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Important Questions Class 12 Chapter 6 Dissolution Of A Partnership Firm

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The firm was dissolved on the above date.

The firm was dissolved on the above date and the following was decided—

Prepare Realisation account, Partners capital accounts and Bank account. Ans. Realisation account

Working Note: Calculation of Closing capital (Capital as on 31/12/2009)

Memorandum Balance sheet as on 31/12/2009

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a) The Partnership is dissolved but the business continue. The Business is not terminated

b) Assets and liabilities are revalued through revaluation account and the Balance sheet is prepared

b) Assets are sold and the liabilities are paid off through Realisation account.

c) The Books of accounts are not closed as the business is not terminated.

d) The Books of accounts are closed.

a) It is prepared in the case of Dissolution of Partnership firm

a)It is prepared in the case of Dissolution of Partnership.

b) This account is prepared to realise the assets & pay off the liabilities

b) This Account is prepared to revalue the assets and liabilities during Admission, Retirement and Death of the partner.

Realisation account -Dr A’s Capital account (Being commission given to A)

Advertisement Suspense account (Being Advertisement suspense written off)

(Being asset taken over by the partner)

(Being cash received from the creditor)

(Being cash received from a debtor whose account was written off earlier)

(Being Investments taken over by the partners)

(Being profit on Realisation distributed among the partners)

Realisation a/c  (repair bill, creditors and bank loan)

Realisation a/c(Machinery & furniture)

Provision for doubtful  debts – 2000

Bank(Liabilities paid  off) Creditors- 6000 Bank overdraft 6000

Y‘s Capital(stock)  Loss transferred to capitals X- 7200 Y- 1800

Realisation  a/c(liabilities paid off)

Capital Accounts A- 2,000  B- 1,500