TEST OMTEX CLASSES TEST

DISSOLUTION ''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 Amt Assets Amt
Sundry creditors 2,100 Goodwill 700
Bills payable 1,200 Land and building 4,700
Capital accounts Plant and machinery 2,000
Jack 3,500 Investment 400
Rose 3,500 Stock 1500
Capital reserve 1,000 Debtors 1900
Less : (50) 1,850
Cash at bank 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 Amt Asset Amt
Creditors 4,000 Machinery 2,000
Overdraft 6,000 Goodwill 3,000
Capital A/c Stock and Debtors 19,000
Ajit 12,000 Profit and loss A/C 6000
Vijay 9,000 Surya’s capital 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***************