St Xavier's High School

Barabati Stadium

ACCOUNTANCY
Class 12 - Accountancy
Time Allowed: 1 hour Maximum Marks: 38

1. At the time of dissolution, total assets are of ₹ 12,00,000 and outside liabilities are of ₹ 4,80,000. if assets [1]
realised 120% and realisation expenses paid were ₹ 16,000, gain or loss on realisation will be

a) Gain ₹ 2,40,000 b) Gain ₹ 2,24,000

c) Loss ₹ 2,24,000 d) Loss ₹ 2,40,000

2. On firm’s dissolution, a partner undertook firm’s creditors at ₹ 17,000. In this case the account will be credited: [1]

a) Creditors A/c b) Realsation A/c

c) Cash A/c d) Partner's Capital A/c

3. At time of dissolution of partnership firm, the balance of profit and loss account shown in the assets side of [1]
Balance sheet of the firm is transferred to:

a) Loan Accounts of partners b) Realisation Account

c) Capital Accounts of partners d) Cash Account

4. Court can make an order to dissolve the firm when: [1]

a) Continued future profits are expected b) Partnership deed is fully followed

c) Firm is running legal business d) Some partner has become fully mad
5. At the time of dissolution of firm, Loan of partners (Loans given by partners to the firm) is paid out of the [1]
amount realised on sale of assets:

a) After making the payment of balance of b) After making the payment of loans given by
Capital Accounts of partners third party

c) Before the payment of loans given by third d) Before making the payment of balance of
party Capital Accounts of partners
6. At the time of firm’s dissolution, Balance of General Reserve shown in the Balance Sheet is credited to: [1]

a) Profit & Loss Account b) Realisation Account

c) Partner’s Capital Account d) Creditor’s Account

7. On dissolution of the partnership firm of A, B and C, the accumulated profits of ₹ 40,000 will be transferred to [1]
which of the following account?

a) Revaluation Account b) Realisation Account

c) Partners' Capital Accounts d) Bank Account

8. At the time of dissolution of partnership firm, Deferred Revenue Expenditure (Advertisement Expenditure) is [1]
transferred to

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 a) Realisation Account b) Partner's Loan Account

c) Cash Account d) Capital Accounts of Partners

9. In the Balance Sheet Total Debtors appear at ₹ 50,000 and Provision for Doubtful Debts appear at ₹ 1,500. How [1]
much amount will be realised from Debtors, if bad debts amount to ₹ 10,000 and remaining debtors are realised
at a discount of 5%.

a) ₹ 38,000 b) ₹ 36,500

c) ₹ 36,575 d) ₹ 39,500
10. How would you treat investment fluctuation reserve given in the balance sheet at the time of dissolution? [1]

a) Debit side of partners’ capital account b) Cash Account credit side

c) Credit side of Realisation Account d) Debit side of Realisation Account

11. Parkash and Ravi were partners in a firm sharing profits in the ratio of 3 : 2. In spite of repeated reminders by the [4]
authorities, they kept dumping hazardous material into a nearby river. The court ordered for the dissolution of
their partnership firm on 31st March, 2023. Parkash was deputed to realise the assets and to pay the liabilities.
He was paid ₹ 1,000 as commission for his services. The financial position of the firm on 31st March, 2023 was
as follows:
BALANCE SHEET as at 31st March, 2023

Liabilities ₹ Assets ₹

Creditors 80,000 Building 1,20,000

Mrs. Parkash's Loan 40,000 Investments 30,600

Ravi's Loan 24,000 Debtors 34,000

Less: Provision
Investments Fluctuation Fund 8,000 for Doubtful (4,000) 30,000
Debts

Capital A/cs: Bills Receivable 37,400

Parkash 42,000 Cash 6,000

Ravi 42,000 84,000 Profit and Loss A/c 8,000

Goodwill 4,000

2,36,000 2,36,000

Following was agreed upon:

i. Parkash agreed to pay his wife's loan.
ii. Debtors realised ₹ 24,000.
iii. Ravi took all investments at ₹ 27,000.
iv. Building realised ₹ 1,52,000.
v. Creditors were payable after 2 months. They were paid immediately at 10% discount.
vi. Bills Receivable were settled at a loss of ₹ 1,400.
vii. Realisation expenses amounted to ₹ 2,500.
Prepare Realisation Account, Partners' Capital Accounts and Cash Account to close the book of the firm.

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12. There are two partners X and Y in a firm and their capitals are ₹ 50,000 and ₹ 40,000. The creditors are ₹ [4]
30,000. The assets of the firm realise ₹ 1,00,000. How much will X and Y receive?
13. The firm of Manjeet, Sujeet and Jagjeet was dissolved on 31st March, 2023. It was agreed that Suraj will take [4]
care of the dissolution related activities and will get 10% of the value of assets realised. Suraj agreed to bear the
realisation expenses. Assets realised ₹ 10,00,750 and realisation expenses were ₹ 90,000, which were paid from
the firm's cash. ₹ 4,50,000 were paid to the creditors in full settlement of their claim.
Pass necessary Journal entries for the above transactions in the books of the firm.
14. Archana, Vandana and Arti were partners in a firm sharing profits and losses in the ratio of 5 : 3 : 2. Their [4]
Balance Sheet on 31st March, 2023 was as follows:
Balance Sheet of Archana, Vandana and Arti as at 31st March, 2023

Liabilities Amount (₹) Assets Amount (₹)

Capitals: Investments 80,000

Archana 80,000 Plant 1,00,000

Vandana 70,000 Stock 40,000

Arti 60,000 2,10,000 Debtors 50,000

General Reserve 30,000 Cash at Bank 30,000

Creditors 60,000

3,00,000 3,00,000

The firm was dissolved on the above date.

i. Assets were realised as follows:
Debtors - ₹ 40,000
Stock - ₹ 50,000
Plant - ₹ 60,000
ii. 25% of the Investments were taken over by Vandana at ₹ 18,000. Remaining Investments were taken over by
Archana at 10% less than its book value.
iii. Expenses of realisation ₹ 20,000 were paid by Arti.
Prepare Realisation Account.
15. Balance Sheet of P, Q and R as at 31st March, 2023, who were sharing profits in the ratio of 5 : 3 : 1, was: [6]

Liabilities ₹ Assets ₹

Bills Payable 40,000 Cash at Bank 40,000

Loan from Bank 30,000 Stock 19,000

General Reserve 9,000 Sundry Debtors 42,000

Less: Provision for

Capital A/cs: 2,000 40,000
Doubtful Debts

P 44,000 Building 40,000

Q 36,000 Plant and Machinery 40,000

R 20,000 1,00,000

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 1,79,000 1,79,000

The partners dissolved the business. Assets realised-Stock ₹ 23,400; Debtors 50%; Building and Plant and
Machinery 10% less than their book value. Bills Payable were settled for ₹ 32,000. There was an Outstanding
Bill of electricity ₹ 800 which was paid. Realisation expenses ₹ 1,250 were also paid.
Prepare Realisation Account, Partners' Capital Accounts and Bank Account.
16. A, B and C stared business on 1st April, 2022 with capitals of ₹ 1,00,000, ₹ 80,000 and ₹ 60,000 respectively [6]
sharing profits and losses in the ratio of 4 : 3 : 3. For the year ended 31st March, 2023, the firm incurred loss of
₹ 50,000. Each of the partners withdrew ₹ 10,000 during the year.
On 31st March, 2023, the firm was dissolved, The creditors of the firm stood at ₹ 24,000 on that date and cash in
hand was ₹ 4,000. Assets realised ₹ 3,00,000 and Creditors were paid ₹ 23,500 in full settlement of their claims.
Prepare Realisation Account and show your workings clearly.

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