Doubts

Sundry’ Creditors Rs. 2,50,000 and Bills Payable Rs. 35,000 have been transferred to the Credit side of Realisation Account. Sundry Creditors were paid at a discount of 10%. What would be the further treatment if nothing else is mentioned?

SOLUTION Realisation A/c                      Dr.       35,000 To Bank A/c                                       35,000(Bills Payable paid off)

Continue ReadingSundry’ Creditors Rs. 2,50,000 and Bills Payable Rs. 35,000 have been transferred to the Credit side of Realisation Account. Sundry Creditors were paid at a discount of 10%. What would be the further treatment if nothing else is mentioned?

Provision for Depreciation Rs. 65,000; Provision for Doubtful Debts Rs. 30,000; and Provident Fund Rs. 1,50,000 has been transferred to the Credit side of Realisation Account. For which item payment is to be made by the firm?

SOLUTION Provident Fund.

Continue ReadingProvision for Depreciation Rs. 65,000; Provision for Doubtful Debts Rs. 30,000; and Provident Fund Rs. 1,50,000 has been transferred to the Credit side of Realisation Account. For which item payment is to be made by the firm?

C’s Capital Account has a credit balance of Rs. 2,00,000; Cs Loan Account is showing a debit balance of Rs. 40,000. Bank Balance is Rs. 3,00,000. Show the treatment of C’s Loan A/c.

SOLUTION Bank A/c                         Dr.       40,000 To C’s Loan A/c                                  40,000(Loan recovered from C)

Continue ReadingC’s Capital Account has a credit balance of Rs. 2,00,000; Cs Loan Account is showing a debit balance of Rs. 40,000. Bank Balance is Rs. 3,00,000. Show the treatment of C’s Loan A/c.

X, Y and Z are partners in a firm in the ratio of 4: 3; 2. On firm’s dissolution, firm’s total assets are Rs. 70,000, creditors are Rs. 15,000. Realisation expenses are Rs. 2,100. Assets realised 15% more than the book-value. Creditors were paid 2% more. For profit / loss on realisation, y’s capital account will be debited / credited with how much amount?

SOLUTION Y’s Account will be credited with Rs. 2,700.

Continue ReadingX, Y and Z are partners in a firm in the ratio of 4: 3; 2. On firm’s dissolution, firm’s total assets are Rs. 70,000, creditors are Rs. 15,000. Realisation expenses are Rs. 2,100. Assets realised 15% more than the book-value. Creditors were paid 2% more. For profit / loss on realisation, y’s capital account will be debited / credited with how much amount?

On the basis of the following data how much final payment will be made to a partner on firm’s dissolution? Credit balance of Capital Account Rs. 50,000; Share of loss on realisation Rs. 10,000; Firm’s liability taken over by him for Rs. 8,000.     

SOLUTION Rs. 48,000

Continue ReadingOn the basis of the following data how much final payment will be made to a partner on firm’s dissolution? Credit balance of Capital Account Rs. 50,000; Share of loss on realisation Rs. 10,000; Firm’s liability taken over by him for Rs. 8,000.     

On dissolution of a firm, its Balance Sheet revealed capital Rs. 5,00,000; General Reserve Rs. 2,00,000, Creditors Rs. 1,00,000 and cash balance Rs. 20,000. Assets were realised at 60%. What will be loss on realisation?

SOLUTION Rs. 3,12,000

Continue ReadingOn dissolution of a firm, its Balance Sheet revealed capital Rs. 5,00,000; General Reserve Rs. 2,00,000, Creditors Rs. 1,00,000 and cash balance Rs. 20,000. Assets were realised at 60%. What will be loss on realisation?

If opening capitals of partners are A Rs. 2,00,000, B Rs. 3,00,000 and C Rs. 4,00,000 and their drawings during the year are A Rs. 3,000 per month, B Rs. 4,000 per month and C Rs. 5,000 per month and creditors are Rs. 80,000, what will be the amount of assets of the firm?

SOLUTION Rs. 8,36,000.

Continue ReadingIf opening capitals of partners are A Rs. 2,00,000, B Rs. 3,00,000 and C Rs. 4,00,000 and their drawings during the year are A Rs. 3,000 per month, B Rs. 4,000 per month and C Rs. 5,000 per month and creditors are Rs. 80,000, what will be the amount of assets of the firm?

If total assets are Rs. 5,00,000; total liabilities are Rs. 2,00,000; amount realised on sale of assets is Rs. 3,10,000 and realisation expenses are Rs. 2,000 what will be the profit or loss on realisation?

SOLUTION Loss Rs. 1,92,000.

Continue ReadingIf total assets are Rs. 5,00,000; total liabilities are Rs. 2,00,000; amount realised on sale of assets is Rs. 3,10,000 and realisation expenses are Rs. 2,000 what will be the profit or loss on realisation?

On the basis of following data, how much final payment will be made to a partner on firm’s dissolution? Debit balance of Capital Account Rs. 5,000; Share of his profit on realisation Rs. 28,000; Firm’s asset taken over by him for Rs. 6,000.

SOLUTION Rs. 17,000.

Continue ReadingOn the basis of following data, how much final payment will be made to a partner on firm’s dissolution? Debit balance of Capital Account Rs. 5,000; Share of his profit on realisation Rs. 28,000; Firm’s asset taken over by him for Rs. 6,000.