Doubts

If total assets of a firm are Rs. 6,00,000 and total liabilities are Rs. 1,80,000, what will the capitals of P, Q and R if they share profits in the ratio of their capitals and profit-sharing ratio is 5: 4: 3.

SOLUTION P Rs. 1.75,000;Q Rs. 1,40,000;R Rs. 1,05,000

Continue ReadingIf total assets of a firm are Rs. 6,00,000 and total liabilities are Rs. 1,80,000, what will the capitals of P, Q and R if they share profits in the ratio of their capitals and profit-sharing ratio is 5: 4: 3.

Creditors amounting to Rs. 80,000 are transferred to Realisation Account. What entry will be made on their payment if Rs. 10,000 of the creditors are not to be paid and the remaining creditors agreed to accept 20% less amount?

SOLUTION Realisation A/c   Dr.       56,000 To Cash/Bank A/c                 56,000

Continue ReadingCreditors amounting to Rs. 80,000 are transferred to Realisation Account. What entry will be made on their payment if Rs. 10,000 of the creditors are not to be paid and the remaining creditors agreed to accept 20% less amount?

On dissolution of a firm, a partner’s capital account has a credit balance of Rs. 42,000. His share of profit in realisation account is Rs. 9,000. He has paid firm’s realisation expenses Rs. 3,000. How much amount he will finally get?

SOLUTION Rs. 54,000.

Continue ReadingOn dissolution of a firm, a partner’s capital account has a credit balance of Rs. 42,000. His share of profit in realisation account is Rs. 9,000. He has paid firm’s realisation expenses Rs. 3,000. How much amount he will finally get?

On dissolution of a firm, debtors Rs. 17,000 were shown in the Balance Sheet. Out of this Rs. 2,000 became bad. One debtor became insolvent. 70% were recovered from him out of Rs. 5,000. Full amount was recovered from the balance debtors. On account of this item, what will be the loss in realisation account?

SOLUTION Rs. 3,500

Continue ReadingOn dissolution of a firm, debtors Rs. 17,000 were shown in the Balance Sheet. Out of this Rs. 2,000 became bad. One debtor became insolvent. 70% were recovered from him out of Rs. 5,000. Full amount was recovered from the balance debtors. On account of this item, what will be the loss in realisation account?

At the time of dissolution of a firm, Creditors are 70,000; Partner’s capital is Rs. 1,20,000; Cash Balance is Rs. 10,000. Other assets realised Rs. 1,50,000. What will be the Profit / Loss in the realisation account?

SOLUTION Loss Rs. 30,000.

Continue ReadingAt the time of dissolution of a firm, Creditors are 70,000; Partner’s capital is Rs. 1,20,000; Cash Balance is Rs. 10,000. Other assets realised Rs. 1,50,000. What will be the Profit / Loss in the realisation account?

If total assets of a firm are Rs. 12,00,000 and total liabilities are Rs. 2,40,000, what will the capitals of P, Q and R if they share profits in the ratio of their capitals and profit-sharing ratio is 1: 2: 3.

SOLUTION P Rs. 1,60,000;Q Rs. 3,20,000;R Rs. 4,80,000

Continue ReadingIf total assets of a firm are Rs. 12,00,000 and total liabilities are Rs. 2,40,000, what will the capitals of P, Q and R if they share profits in the ratio of their capitals and profit-sharing ratio is 1: 2: 3.

If opening capitals of partners are A Rs. 3,00,000, B Rs. 2,00,000 and C Rs. 1,00,000 and their drawings during the year are A Rs. 50,000, B Rs. 40,000 and C Rs. 30,000 and creditors are Rs. 60,000, what will be the amount of assets of the firm?

SOLUTION Rs. 5,40,000       

Continue ReadingIf opening capitals of partners are A Rs. 3,00,000, B Rs. 2,00,000 and C Rs. 1,00,000 and their drawings during the year are A Rs. 50,000, B Rs. 40,000 and C Rs. 30,000 and creditors are Rs. 60,000, what will be the amount of assets of the firm?

Total creditor amount to Rs. 5,00,000. Investments valued Rs. 2,00,000 were not shown in the hooks. One of the creditors took over these investments in full satisfaction of his debt of Rs. 2,20,000. Remaining creditors were paid at 5% discount. Pass entry for payment.

SOLUTION Realisation A/c               Dr.       2,66,000To Cash/Bank A/c                                         2,66,000

Continue ReadingTotal creditor amount to Rs. 5,00,000. Investments valued Rs. 2,00,000 were not shown in the hooks. One of the creditors took over these investments in full satisfaction of his debt of Rs. 2,20,000. Remaining creditors were paid at 5% discount. Pass entry for payment.