[ISC] Q. 30 Solution of Dissolution of Partnership Firm TS Grewal ISC 2023-24 Edition

Sam and Akhil are partners sharing profits and losses in proportion to their capitals, which on 31st March, 2023 were ₹ 12,00,000 and ₹ 8,00,000 respectively. It had ₹ 2,00,000 as Workmen Compensation Reserve and outside liabilities were ₹ 12,00,000, which included Creditors of ₹ 4,00,000 and Bills Payable of ₹ 1,20,000.

The firm was dissolved on 31st March, 2023, on which date, the assets, apart from Cash of ₹ 1,40,000, realised ₹ 28,00,000 and the liabilities were paid as follows:

1. (a) Creditors were due on 31st May, 2023 and were paid on the date of dissolution at a discount of 3% per annum.
2. (b) Bills Payable were discharged at a rebate of ₹ 2,000.
3. (c) Workmen Compensation Claim of ₹ 80,000 was met.
4. (d) Expenses of dissolution amounting to ₹ 60,000 were paid.

You are required to prepare:

1. (i) Realisation Account.
2. (ii) Partners’ Capital Accounts.
3. (iii) Cash Account.