Do as instructed - Book Keeping & Accountancy STD 12 Commerce / Arts Questions - Vidyadip

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18 questions · self-marked practice — reveal the answer and mark yourself.

Question 18 Marks

Following in the Balance Sheet of M/s Rane, Kane and Mane as on 31st March 2019

Balance Sheet as on 31st March 2019
Liabilities	Amount ₹	Assets	Amount ₹
Capital :		Furniture	6,000
Rane	10,000	Debtors	40,000
Kane	6,000	Stocks	48,000
Sundry Creditors	80,000	Cash	2,000
Rane's Loan	20,000	Capital : Mane	20,000
	1,16,000		1,16,000

Due to the inability to pay the creditors, the firm is dissolved, Kane and Mane cannot pay anything. Rane can contribute only ₹ 3,000 from his private estate. Stock realised ₹ 30,000. Debtors realised ₹ 32,000 and Furniture is sold for ₹ 2,000. Realisation Expenses amounted to ₹ 6,000.
Prepare necessary Ledger Account to close the books of the firm.

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Question 28 Marks

Narendra, Devendra and Mahendra are partners sharing Profit and Losses at 3 : 3 : 2. The Business is dissolved on 31st March 2020. When their Balance Sheet stands as below :

Balance Sheet as on 31 st March 2020.
Liabilities	Amount ₹	Assets	Amount ₹
Capital Account:		Plant and Machinery	1,00,000
Narendra	20,000	Motor Car	20.000
Devendra	80,000	Sundry Debtors	90,000
Mehendra	40,000	Stock	1,20,000
Sundry Creditors	2,00,000	Cash at Bank	10,000
	3,40,000		3,40,000

They decided to dissolve the partnership on the above date as follows.
1. Machinery and Stock are sold for ₹ 50,000 and ₹ 36,000 respectively.
2. Debtors realised for ₹ 40,000
3. Motor Car is taken by Devendra for ₹ 26,000.
4. Realisation expenses amounted to ₹ 2,000.
5. Deficiency of any partner in capital account is to be met by other partners in profit sharing ratio.
6. Narendra became insolvent and Mahendra could bring in ₹ 10,000 only.
Prepare necessary ledger accounts in the books of firm.

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Question 38 Marks

Shubhangi, Manisha and Shital are partners. They share Profit and Losses equally. Their Balance Sheet as on 31st March 2018 was as follows :

Balance Sheet as on 31st March 2018
Liabilities	Amount ₹	Assets		Amount ₹
Capital Account :		Machinery		62,500
Shubhangi	62,500	Stock		37,500
Manisha	37,500	Debtors	27,500
Reserve fund	22,500	Less R. D. D.	2,500	25,000
Creditors	37,500	Bills Receivable		22,500
Bills Payable	12,500	Cash at Bank		12,500
		Shital's Capital		12,500
	1,72,500			1,72,500

On the above date it was decided to dissolve the firm
The assets realised were as follows :
1. Stock ₹ 31, 250, Machinery ₹ 37,500, Debtors ₹ 21,250 and Bills Receivable ₹ 18,000.
2. Creditors were paid at a discount of 2% and Bills Payable were paid in full.
3. Realisation expenses amounted to ₹ 6,250.
4. Shital was declared insolvent and 50 paise in rupees could be recovered from her private estate.
Prepare : Realisation Account, Partner’s Capital Account and Bank Account.

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Question 48 Marks

Sun, Moon and Star are partners in a firm sharing Profits and Losses in the ratio of 5:3:2. They agreed to dissolve the firm on 31st March 2019 on which date their Balance Sheet was as under.

Balance Sheet as on 31st March 2019.
Liabilities	Amount ₹	Assets	Amount ₹
Capital :		Furniture	20,000
Sun	35,000	Goodwill	13,000
Star	85,000	Joint Life Policy	30,000
Reserve Fund	15,000	(At surrendered value)
Joint Life Policy Fund	30,000	Sundry Debtors	60,000
Sundry Creditors	26,000	Stock	22,000
Outstanding Rent	4,000	Cash at Bank	40,000
		Capital Account : Moon	10,000
	1,95,000		1,95,000

During the dissolution following were the Cash and Non-Cash transactions.
A. Furniture and Stock were taken over by Sun at an agreed value of ₹ 35,000 and ₹ 28,000 respectively.
B. Joint Life Policy was surrendered and Sundry Debtors were realised in full after allowing a discount of 20%
C. Sundry Creditors were taken over by Moon at ₹ 24,000.
D. The Realisation Expenses amounted to ₹ 2,000
You are required to prepare necessary Ledger Account in the Books of firm

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Question 58 Marks

The following is the Balance Sheet of Swara and Swaraj as on 31st March 2018.

Balance Sheet as on 31st March 2018.
Liabilities	Amount ₹	Assets	Amount ₹
Capital Account :		Furniture	6,000
Swara	6,000	Patents	1,200
Swaraj	5,000	Goodwill	2,000
General Reserve	2,000	Debtors	200
Swara's Loan A/c	2,000	Less : R. D. D.	3,600
Creditors	3,000	Stock	5,000
Bills Payable	1,000	Bank	1,200
	19,000		19,000

On 1st April 2018 the firm was dissolved.
1. Swara took over Patents at a value of ₹ 2,000.
2. The assets were realised as under :
Furniture ₹ 7,000, Goodwill ₹ 3,000, Stock ₹ 4,000 and Debtors ₹ 3,000.
3. Creditors were paid off at a discount of 10% and other liabilities were paid in full.
4. Expenses for realisation amounted to ₹ 1,500 which is borne by Swaraj.
Prepare Realisation A/c, Partners’ Capital A/c and Bank A/c

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Question 68 Marks

A firm consisting of partners Mahesh, Suresh and Yogesh decided to dissolve the partnership. They decided to take over certain assets and liabilities and continue business separately. The Balance Sheet was as under.

Balance Sheet as on 31st March 2017
Liabilities	Amount ₹	Assets		Amount ₹
Capital A/c :		Furniture		2,000
Mahesh	55,000	Sundry Assets
Suresh	20,000	Debtors	48,400
Yogesh	14,000	Less : R. D. D.	2,400	46,000
Creditors	12,000	Stock		15,600
Loan	3,000	Cash		6,400
	1,04,000			1,04,000

It was agreed as under :
1. Mahesh is to take Furniture at ₹ 1,600 and the Debtors amounting to ₹ 40,000 at ₹ 34,400 only. He accepted the Creditors of ₹ 12,000 at that figure.
2. Suresh is to take over all Stock at ₹ 14,000 and Sundry Assets worth ₹ 16,000 at ₹ 14,400 only.
3. Yogesh is to takeover the remaining Sundry Assets at ₹ 16,000 and assume the responsibility for the discharge of the loan together with accrued interest on loan of ₹ 60, which has not been recorded in accounts.
4. The dissolution expenses were ₹ 540.
5. The remaining Debtors realized ₹ 4,200 only.
6. The necessary Adjustments were made by partners to settle their accounts.
Prepare Realisation Account, Partners Capital Account, and Cash Account, after giving effect to the above adjustments.

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Question 78 Marks

Shashwat and Shiv are equal partners. Their Balance Sheet stood as under:
Balance Sheet as of 31st March 2019

Due to weak financial position, all partners were declared bankrupt.
The Assets were realised as follows:
Stock ₹ 3,500, Furniture ₹ 2,000, Debtors ₹ 5,000 and Machinery ₹ 7,000.
The cost of collection and distributing the estate amounted to ₹ 1,500. Shashwat’s private estate is not sufficient even to pay his private debts, whereas in Shiv’s private estate there is a surplus of ₹ 500.
Prepare necessary Ledger Accounts to close the books of the firm.

Answer

In the books of Shashwat and Shiv

Working Note:
As partners we’re not able to pay their loss amount, a difference of amount is considered as deficiency of partners.

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Question 88 Marks

Following is the Balance Sheet as of 31st March 2019 of a firm having three partners Priti, Priya, and Prachi.
Balance Sheet as of 31st March 2019

The firm was dissolved due to the insolvency of all the partners. Machinery was sold for ₹ 18,000, while Furniture fetched ₹ 14,000, Stock realized ₹ 35,000. Realisation expenses amounted to ₹ 2,000. Nothing could be recovered from Priya and Prachi, but ₹ 3,400 could be collected from Priti’s private estate.
Close the books of accounts of the firm.

Answer

In the books of Priti, Priya, and Prachi

Working Notes:
1. Amount paid to loan from sale of machinery $=₹ 18,000$
Balance of Loan $30,000-18,000=₹ 12,000$
2. Ratio of Trade creditors and Loan $=50,000: 12,000$
$=50: 12$
$=25: 6$
3. Balance of cash available $=10,000+67,000+3,400-18,000-2,000$
$=80,400-20,000$
$=₹ 60,400$
Amount paid towards loan $=\frac{6}{31} \times \frac{60,400}{1}=₹ 11,690$
Amount paid to Trade creditors $=\frac{25}{31} \times 60,400=₹ 48,710$
Amount paid towards loan $=18,000+11,690=₹ 29,690$.

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Question 98 Marks

Shweta, Nupur, and Sanika are partners sharing profits and losses in the ratio of 3 : 2 : 1. Their Balance Sheet as of 31st March 2019 was as follows:
Balance Sheet as of 31st March 2019

The firm is dissolved on 31st March 2019. Sundry assets realised @ 60% of its book value. Realisation expenses ₹ 2,000 paid by Shweta. Nupur and Sanika both are insolvent.
Nupur’s private estate has got a surplus of ₹ 3,000 and that of Sanika ₹ 8,000.
Show necessary Ledger Accounts to close the books of the firm.

Answer

In the books of Shweta, Nupur and Sanika

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Question 108 Marks

Following is the Balance Sheet of Vaibhav, Sanjay, and Santosh
Balance Sheet as of 31st March 2019

Santosh is declared insolvent so the firm is dissolved and assets realised as follows:
1. Stock and Debtors ₹ 54,000, Goodwill – NIL, Machinery at book value.
2. Creditors allowed a discount of 10%.
3. Santosh could pay only 25 paise in the rupee of the balance due.
4. Profit sharing ratio was 8 : 4 : 3.
5. A contingent liability against the firm ₹ 9,000 is cleared.
Give Ledger Account to close to books of the firm.

Answer

In the books of Vaibhav, Sanjay, and Santosh

Working Notes:
1. Contingent liability paid, so Realisation $A / C$ is debited and Bank $A / C$ is credited.
2. Santosh could pay only 25 paise in a rupee of the balance due i.e.
Balance due from Santosh (Debit side of Partners Capital $A / c$ ) $=₹ 10,560$
$25 \%$ of $₹ 10,560=₹ 2,640$ (Amount recorded on debit side of Bank A/c)
Capital deficiency of Santosh $=10,560-2,640=₹ 7,920$
$₹ 7,920$ to be distributed among continuing partner in their profit-loss ratio $=8: 4$ i.e. 2 :
1.
$7,920 \times \frac{2}{3}=₹ 5,280$
$7,920 \times \frac{1}{3}=₹ 2,640$

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Question 118 Marks

Sitaram, Gangaram, and Rajaram are partners sharing profits and losses in the ratio of 4 : 2 : 3. On 1st April 2019 they agreed to dissolve the partnership, their Balance Sheet was as follows:
Balance Sheet as of 31st March 2019

The assets realised: Building ₹ 46,750; Machinery ₹ 18,550; Furniture ₹ 9,600; Investment ₹ 10,650; Bill Receivable and Debtors ₹ 20,750. All the liabilities were paid off. The cost of realisation was ₹ 800. Rajaram becomes bankrupt and ₹ 1,100 only was recovered from his estate.
Show Realisation Account, Bank Account, and Capital Account of the partners.

Answer

In the books of Sitaram, Gangaram and Rajaram

Working Notes:
1. ₹ 1,100 is recovered from Rajaram’s estate which is recorded on the credit side of Rajaram’s Capital Account and on the debit side of Bank A/c.

2. Capital deficiency of Rajaram = Debit total of Capital A/c – Credit total of Capital A/c
= 18,000 – 15,900
= ₹ 2,100
The deficit amount of Rajaram A/c ₹ 2,100 is distributed among continuing partners’ in 2 : 1 ratio.

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Question 128 Marks

Saiesh, Sumit, and Hemant were in partnership sharing Profits and Losses in the ratio 2 : 2 : 1. They decided to dissolve their partnership firm on 31st March 2019 and their Balance Sheet on that date stood as;
Balance Sheet as of 31st March 2019

It was agreed that;
1. Sailesh to discharge Loan and to take Debtors at book value.
2. Plant realised ₹ 1,35,000.
3. Stock realised ₹ 72,000.
4. Creditors were paid off at a discount of ₹ 45.
Show Realisation Account, Partners’ Capital Account, and Bank Account.

Answer

In the books of Sailesh, Sumit, and Hemant

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Question 138 Marks

Sangeeta, Anita, and Smita were in partnership sharing profits and losses in the ratio 2 : 2 : 1. Their Balance Sheet as of 31st March 2019 was as under:
Balance Sheet as of 31st March 2019

They decided to dissolve the firm as follows:
1. Assets realised as; Land recovered ₹ 1,80,000; Goodwill for ₹ 75,000; Loans and Advance realised ₹ 12,000; 10% of the Debts proved bad.
2. Sangeeta took Plant at book value.
3. Creditors and Bills payable paid at 5% discount.
4. Sandhya’s loan was discharged along with ₹ 6,000 as interest.
5. There was a contingent liability in respect of bills of ₹ 1,00,000 which was under discount. Out of them, a holder of one bill of ₹ 20,000 became insolvent.
Show Realisation Account, Partners’ Capital Account, and Bank Account.

Answer

In the books of Sangeeta, Anita, and Smita

Working Notes:
1. Amount paid towards Sandhya’s Loan = Loan amount + Interest due on loan
= 1,20,000 + 6,000
= ₹ 1,26,000

2. Amount received from Debtors = Debtors – Bad debts
= 1,25,000 – 10% of 1,25,000
= 1,25,000 – 12,500
= ₹ 1,12,500

3. Amount paid to Creditors = Creditor – 5% discount
= 1,20,000 – 5% on 1,20,000
= 1,20,000 – 6,000
= ₹ 1,14,000

4. Amount paid towards Bills payable = Bills payable – 5% discount
= 20,000 – 5% on 20,000
= 20,000 – 1,000
= ₹ 19,000

5. Bill of ₹ 1,00,000 was discounted with the Bank. On the due date, bank could not recover ₹ 20,000 from one bill holder as he was declared insolvent. Therefore, we are required to settle that contingent liability of ₹ 20,000.

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Question 148 Marks

Seeta and Geeta are partners in the firm sharing profits and losses in the ratio of 4 : 1. They decided to dissolve the partnership on 31st March 2020 on which date their Balance Sheet stood as follows:
Balance Sheet as of 31st March 2020

Additional Information:
1. Plant and Stock took over by Seeta at ₹ 78,000 and ₹ 22,000 respectively.
2. Debtors realised 90% of the book value and Trademark at ₹ 5,000 and Goodwill was realised for ₹ 27,000.
3. Unrecorded assets estimated at ₹ 4,500 were sold for ₹ 1,500.
4. ₹ 1,000 Discounts were allowed by creditors while paying their claim.
5. The Realisation expenses amounted to ₹ 3,500.
You are required to prepare Realisation A/c, Cash A/c, and Partners’ Capital A/c.

Answer

In the books of Seeta and Geeta

Working Notes:
1. Bank Loan is an external liability of the firm and therefore it is transferred to Realisation $\mathrm{A} / \mathrm{c}$
2. Amount recovered from Debtors $=90 \%$ of Gross Debtors $=\frac{90}{100} \times 48,000=₹ 43,200$.
3. Amount paid to creditors = Value of Creditors - Discount given $=35,000-1,000=₹$ 34,000
4. Sale of unrecorded assets for $₹ 1,500$ is recorded on the credit side of Realisation $A / c$ and debit side of Cash $\mathrm{A} / \mathrm{C}$.
5. It is presumed that Furniture realised nothing.

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Question 158 Marks

Asha, Usha, and Nisha were partners sharing profits and losses in the ratio of 2 : 2 : 1. The following is the Balance Sheet as of 31st March 2019.
Balance Sheet as of 31st March 2019

On the above date, the partners decided to dissolve the firm.
1. Assets were realised at: Machinery ₹ 90,000, Stock ₹ 36,000, Investment ₹ 42,000 and Debtors ₹ 90,000.
2. Dissolution expenses were ₹ 6,000.
3. Goodwill of the firm realized ₹ 48,000.
Pass Journal Entries to close the books of the firm.

Answer

In the books of Asha, Usha, and Nisha
Journal Entries

Working Notes:
In the books of Asha, Usha, and Nisha

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Question 168 Marks

Shailesh and Shashank were partners sharing profits and losses in the ratio of 3 : 2. Their Balance Sheet as of 31st March 2019 was as follows:
Balance Sheet as of 31st March 2019

The firm was dissolved on the above date and the assets realised as under:
1. Plant ₹ 8,000, Building ₹ 6,000, Stock ₹ 4,000 and Debtors ₹ 12,000.
2. Shailesh agreed to pay off the Bills Payable.
3. Creditors were paid in full.
4. Dissolution expenses were ₹ 1,400.
Prepare Realisation A/c, Partners’ Current A/c, Partners’ Capital A/c, and Bank A/c.

Answer

In the books of Shailesh and Shashank

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Question 178 Marks

Leela, Manda, and Kunda are partners in the firm ‘Janki Stores’ sharing profits and losses in the ratio of 3 : 2 : 1 respectively. On 31st March 2018, they decided to dissolve the firm when their Balance Sheet was as under.
Balance Sheet as of 31st March 2018

Leela agreed to take over the Building at ₹ 1,23,600. Manda took over Goodwill, Stock, and Debtors at book values and agreed to pay Creditors and Bills payable. Motor car and Machinery realized ₹ 1,51,080 and ₹ 31,680 respectively. Investments were taken by Kunda at an agreed value of ₹ 55,440. Realisation expenses amounted to ₹ 6,800.
Pass necessary entries in the books of ‘Janki Stores’.

Answer

In the books of ‘Janki Stores’
Journal Entries

Working Notes:
In the books of Leela, Manda, and Kunda

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Question 188 Marks

Ganesh and Kartik are partners sharing profits and losses equally. They decided to dissolve the firm on 31st March 2018. Their Balance Sheet was as under:
Balance Sheet as of 31st March 2018

Assets were realised as under:
Building ₹ 82,000, Debtors ₹ 22,000, Stock ₹ 20,000. Bills Receivable ₹ 3,200 and Ganesh agreed to take over Furniture for ₹ 10,000. Realisation Expenses amounted to ₹ 2,000.
Show Realisation A/c, Partners’ Capital A/c, and Cash A/c.

Answer

In the books of Ganesh and Kartik

Working Notes:
1. Amount paid to Ganesh and Kartik are ₹ 27,600 and ₹ 77,600 respectively.
2. Loss on Realisation and Reserve fund amounts are equally distributed.
3. Furniture is taken over by Ganesh so his Capital A/c is debited.

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