Dissolution of Partnership Solution | March 2018 HSC Board

Q. 5. Dissolution of Partnership

March 2018 HSC Board Paper Solution

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In the books of the firm

Complete Solution

Realisation Account

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Dr.Particulars

Particulars	Inner	Outer
To Sundry Assets:
Plant and Machinery	40,000
Investments	16,000
Stock	60,000
Debtors	36,000	1,52,000
To Bank A/c
Realisation Expenses	2,000
Creditors	42,000	44,000
Total		1,96,000

ParticularsCr.

Particulars	Inner	Outer
By Sundry Liabilities:
Sundry Creditors	42,000
By R.D.D. A/c	2,000	44,000
By Bank A/c
Stock	48,000
Debtors	30,000	88,000
By Ashwin Capital A/c		40,000
(Machinery & Investment taken)
By Realization Loss:
Ashwin Capital	12,000
Bhavin Capital	7,200
Pravin Capital	4,800	24,000
Total		1,96,000

Partners' Capital Accounts

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Dr.Particulars

Particulars	Ashwin	Bhavin	Pravin
To Realisation A/c	40,000	-	-
To Realisation A/c (Loss)	12,000	7,200	4,800
To Bank A/c	8,000	24,800	11,200
Total	60,000	32,000	16,000

ParticularsCr.

Particulars	Ashwin	Bhavin	Pravin
By Balance b/d	40,000	20,000	8,000
By Reserve Fund A/c	20,000	12,000	8,000
Total	60,000	32,000	16,000

Bank Account

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Dr.Particulars

Particulars	Amount (Rs)
To Balance b/d	10,000
To Realisation A/c	88,000
Total	98,000

ParticularsCr.

Particulars	Amount (Rs)
By Realization A/c	44,000
By Bhavin’s Loan A/c	10,000
By Ashwin Capital A/c	8,000
By Bhavin Capital A/c	24,800
By Pravin Capital A/c	11,200
Total	98,000