Dissolution Test

TEST

OMTEX CLASSES

DISSOLUTION

TEST

''THE HOME OF TEXT ''

Time:1hrs

All the questions compulsory and each question carry 15 marks 1. Following was the balance sheet of Jack and Rose who were sharing profit and losses in

the ratio of 3:2 respectively.(oct’1990 pg.378) Balance sheet as on 31.12.99 Liabilities Sundry creditors Bills payable Capital accounts Jack Rose Capital reserve

Amt 2,100 1,200 3,500 3,500 1,000

Assets Goodwill Land and building Plant and machinery Investment Stock Debtors 1900 Less : (50) Cash at bank

Amt 700 4,700 2,000 400 1500 1,850 150 11300

11300 The firm was dissolved on that date and following was the result: 1. plant and machinery was taken over by Jack at 20% discount and land and building of Rs 2000 were taken over by Rose for Rs 2,500 2. The remaining assets realised were : land and building Rs3,500, Investments Rs 300 ,stock Rs 1,100 , Debtors Rs 1,500 and Goodwill Rs 1,000 3. Creditors were repaid in full, Bill payable was repaid at 5% discount and realisation expenses amounted to Rs 160. Give journal entries to close the books of the firm 2. Following is the balance sheet of Ajit , Vijay and Surya :(march ‘1997 pg 394)

Liabilities Creditors Overdraft Capital A/c Ajit Vijay

Amt 4,000 6,000

Asset Machinery Goodwill Stock and Debtors Profit and loss A/C Surya’s capital

Amt 2,000 3,000 19,000 12,000 6000 9,000 1000 31,000 31,000 Surya is declared insolvent. Firm is dissolved and asset realised as follows. Stock and Debtors Rs18000 Goodwill Nil Machinery At book value Creditors allowed discount of 10 %. Surya could pay only 25 paise in a rupee of the balance due. The profit and losses sharing ratio was 8: 4:3. Further creditors of Rs 3,000 were paid. Consider Indian partnership act and give ledger account to close the books of the firm. **************** All the Best***************