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.
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 ?
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.
State the difference between dissolution of partnership and dissolution of partnership firm.
report on procedure of winding up partnership firm
MG Rathi
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
Why investment fluctuation reserve is not credited to partner's capital a/c in case of dissolution of firm?
Distinguish between firm’s debts and partner’s private debts.