T S Grewal Solutions 2026-27 [Class 12] – Dissolution of a Partnership Firm – Q 11 to 20

Solution for Q 11 to 20 of Chapter 7 of T S Grewal Class 12 Accountancy 2026-27 are given below. The Chapter name is Dissolution of a Partnership Firm from Partnership Accounts class 12. These Solutions are based on topics Journal entries at the time of dissolution and Preparation of Realization A/c.

Working notes are given with each solution. These help in understanding the steps and are also important for board exams as marks are given for steps.

These solutions are also useful for CA Foundation, CS Foundation and CMA Foundation students. The solutions will be helpful for students as well as teachers teaching class 12 accounts.

Question 11

a)	Cash/Bank A/c Dr..	3000
	To Realization A/c		3000
	(Being unrecorded funiture sold)

b)	Cash/Bank A/c Dr..	600
	To Realization A/c		600
	(Being amount realized from an old customer)
	(1000*60/100)

c)	Paras Capital A/c Dr..	30000
	To Realization A/c		30000
	(Being goodwill taken over by Paras)

d)	Priya Capital A/c Dr..	300
	To Realization A/c		300
	(Being typewriter taken over by Priya)
	(400-(400*25/100))

e)	Paras Capital A/c Dr..	300
	Priya Capital A/c Dr..	300
	To Realization A/c		600
	(Being shares distributed among the partners)

▶ Video Solution: Coming Soon

Question 12

Here question specifically ask to pass the entry after all assets and liabilities are already transferred

So we will pass entries only for settlement

a)	Cash/Bank A/c Dr..		50000
	To Realization A/c			50000
	(Being cash realized on sale of assets)

b)	Realization A/c Dr..		10000
	To Cash/Bank A/c			10000
	(Being cash paid for settlement of liabilities)

c)	Realisation A/c		2500
	To X's Capital A/c			2500
	(Being commission paid to partner)

d)	If we assume expenses initially paid by firm :
	Amrit Capital A/c Dr..		15000
	To Cash A/c			15000
	(Being realization expenses paid by firm)

	Realisation A/c Dr..		10000
	To Amrit Capital A/c			10000
	(Being Realization expenses reimbursed to Amrit)

		Or Single Entry

	Realisation A/c Dr..		10000
	Amrit Capital A/c Dr..		5000
	To Cash/Bank A/c			15000
	(Being realization expenses reimbursed to Amrit)

	Understand : Expenses paid initially by firm. So cash A/c credited
	Firm agreed with Amrit that upto Rs 10000 firm can bear.
	If there is excess then Amrit has to bear
	So firm recovers Rs 10000 from Amrit and excess borne by firm

	If we assume expenses initially paid by Amrit :

	Realization A/c Dr..		10000
	To Amrit Capital A/c			10000
	(Being Realization expenses reimbursed to Amrit)

	Second option is preferable

e)	Realization A/c Dr..		5000
	To Cash/Bank A/c			5000
	(Being payment of employee liability)
	(Note : 'Required to pay' means paid as firm
	is dissolving)

f)	Bank A/c		3600
	To Realisation A/c			3600
	(Being realization of Bad Debts - unrecorded assets)
	(6000*60/100)

g)	Cash/Bank A/c Dr..		15000
	To Realization A/c			15000
	(Being cash realized on sale of investment)
	(10000*150/100)

h)	If we assume expenses initially paid by firm :
	Y Capital A/c Dr..		10000
	To Cash A/c			10000
	(Being realization expenses paid by firm)

	Realisation A/c Dr..		7500
	To Y Capital A/c			7500
	(Being Realization expenses reimbursed to Krishan)

		Or Single Entry

	Realisation A/c Dr..		7500
	Y Capital A/c Dr..		2500
	To Cash/Bank A/c			10000
	(Being realization expenses reimbursed to Krishan)

	If we assume expenses initially paid by Krishan :

h)	Realisation A/c		7500
	To Y Capital A/c			7500
	(Being realization expenses reimbursed to Krishan)

	Second option is preferable

	Working Note:
1	Note the language on point no (d). It says reimbursement to partner
	This means that the expenses were initially paid by the partner
	Though the partner incurred higher expenses but firm agreed to reimburse only lesser amount

2	Please note that Employee Provident Fund is a third party liability

▶ Video Solution: Coming Soon

Question 13

a)	Kavita Capital A/c Dr..	90000
	To Realization A/c		90000
	(Being stock taken over by Kavita)

b)	No entry for asset settled against a liability

c)	Suman Capital A/c Dr..	17000
	To Realization A/c		17000
	(Being unrecorded asset taken over by Suman)

d)	Realisation A/c Dr..	2000
	To Kavita Capital A/c		2000
	(Being Realization expenses paid by Kavita)

e)	Realization A/c Dr..	21000
	To Cash/Bank A/c		21000
	(Being bank loan paid off)

f)	Kavita Capital A/c Dr..	3500
	Suman Capital A/c Dr..	3500
	To Realisation A/c		7000
	(Being loss on realization)

▶ Video Solution: Coming Soon

Question 14

a)	Cash/Bank A/c Dr..	25000
	Aman Capital A/c Dr..	22500
	To Realization A/c		47500
	(Being part furniture taken over by partner and balance sold at BV)

b)	Profit and Loss A/c Dr..	15000
	To Aman Capital A/c		7500
	To Harish Capital A/c		7500
	(Being balance in profit and loss distributed among partners)

c)	Harsh's Loan A/c Dr..	6000
	To Cash/Bank		5500
	To Realization A/c		500
	(Being Harsh loan settled)

d)	Harsh Capital A/c Dr..	5000
	To Bank A/c		5000
	(Bein realization expenses paid by firm on behalf of Harsh)

e)	Realization A/c Dr..	1200
	To Bank A/c		1200
	(Being amount paid to Bank on dishonour of BR)

	Bank A/c Dr..	300
	To Realization A/c		300
	(Being amount realized from Soham's estate)
	(1200*25/100)

	Note : After discounting the BR was not appearing in our books
	Now when it is dishonoured it is accounted like an unrecorded asset

f)	Realization A/c Dr..	1250
	To Cash A/c		1250
	(Being amount paid to creditors)
	Note :
	No entry to be passed for creditors settled against stock Rs 4750
	(6000-(5000*0.95))

▶ Video Solution: Coming Soon

Question 15

a)	Realization A/c Dr..	60000
	To Kunal Capital A/c		60000
	(Being Kunal's wife loan paif by Kunal)

	Note : Kunal wife loan is an outside liability)
	Though Kunal pays now but later he will get amt back

b)	Realization A/c Dr..	27000
	To Bank A/c		27000
	(Being amount paid to creditors)

	Bank A/c Dr..	20000
	To Realization A/c		20000
	(Being balance furniture sold at BV 28000-8000)

c)	Rohit Loan A/c Dr..	70000
	To Bank A/c		70000
	(Being Rohit loan paid)

d)	Kunal Capital A/c Dr..	3000
	To Realization A/c		3000
	(Being machine taken over by Kunal)
	(Expected value has no relevance as it is not actually realised)

e)	Rohit Capital A/c Dr..	144000
	To Realization A/c		144000
	(Being stock taken over by Rohit)

f)	Realization A/c Dr..	15000
	To Sarthak Capital A/c		15000
	(Being remuneration to Sarthak for Realization expenses)
	(The firm is not concerned with payment of Rs 16000 by Sarthak)

▶ Video Solution: Coming Soon

Question 16

a)	Realization A/c Dr..	2600
	To Aman Capital A/c		2600
	(Being realization expenses paid by Aman)

b)	No entry for asset settled against a liability

c)	Bank A/c Dr..	3500
	To Realizartion A/c		3500
	(Being amount realized on unrealized asset)

d)	Realization A/c Dr..	19000
	To Bank A/c		19000
	(Being creditors paid at a discount of 5%)

e)	Bimal Capital A/c Dr..	24000
	To Realization A/c		24000
	(Being stock taken over by Bimal)

f)	Bank A/c Dr..	4000
	To Realization A/c		4000
	(Being investments realized)

▶ Video Solution: Coming Soon

Question 17

i)	Realization A/c Dr..	20000
	To Bank A/c		20000
	(Being amount paid for O/s bill for repairs)

ii)	Tina Capital A/c Dr..	32000
	To Realization A/c		32000
	(Being stocktaken over by Tina)

	Bank A/c Dr..	52000
	To Realization A/c		52000
	(Being Stock sold for cash)

iii)	Tina Capital A/c Dr..	1200
	Rina Capital A/c Dr..	800
	To Realisation A/c		2000
	(Being investments taken over by partner)

iv)	Realization A/c Dr..	4000
	To Rina Capital A/c		4000
	(Being realization expenses paid by Rina)

	Note : Contingent Liability is an unrecorded liability

v)	Tina Loan A/c Dr..	40000
	To Bank A/c		40000
	(Being Tina Loan paid)

vi)	Realization A/c Dr..	9000
	To Rina Capital A/c		9000
	(Being Rina husband loan paid by Rina)
	(10000*90/100)

▶ Video Solution: Coming Soon

Question 18

a)	Realization A/c Dr..				12000
	To Dharam Capital A/c					12000
	(Being remuneration paid to Dharam for realization Expenses)

	Realization A/c Dr..				11000
	To Dharam Capital A/c					11000
	(Being dissolution expenses paid by Dharam to be reimbursed)

				OR
		Combined Single Entry
	Realization A/c Dr..				23000
	To Dharam Capital A/c					23000
	(Being remuneration paid to Dharam for realization Expenses)

b)	Realization A/c Dr..				15000
	To Jay Capital A/c					15000
	(Being remuneration paid to Jay for realization Expenses)

	Jay Capital A/c Dr..				16000
	To Vijay Capital A/c					16000
	(Being actual realization expenses paid by Vijay)

			OR
		Combined Single Entry
	Realization A/c Dr..				15000
	Jay Capital A/c Dr..				1000
	To Vijay Capital A/c					16000
	(Being realization expenses )

c)	Realization A/c Dr..				7000
	To Deepa Capital A/c					7000
	(Being remuneration paid to Deepa for realization Expenses)

	Deepa Capital A/c Dr..				6000
	To Bank A/c					6000
	(Being actual realization expenses paid by firm and borne by Deepa)

			OR
		Combined Single Entry
	Realization A/c Dr..				7000
	To Deepa Capital A/c					1000
	To Bank A/c					6000
	(Being realization expenses )

d)	No Entry required

	Understand below how debit and credit gets set off
	Realization A/c Dr..				7500
	To Dev Capital A/c					7500
	(Being remuneration payable to Dev for realization expenses)

	Dev Capital A/c Dr..				7500
	To Realization A/c					7500
	(Being stock taken over by Dev)

e)	Realization A/c Dr..				10000
	To Jeev Capital A/c					10000
	(Being remuneration payable to Dev for realization expenses)

	When amount paid by Jeev then no entry required in firms books

	Jeev Capital A/c Dr..				12000
	To Cash A/c					12000
	(Drawings by Jeev)
			OR
		Combined Single Entry
	Realization A/c Dr..				10000
	Jeev Capital A/c Dr..				2000
	To Cash A/c					12000
	(Being realization expenses )

▶ Video Solution: Coming Soon

Question 19

a)	Loan from Shiv A/c D..	100000
	To Bank A/c		100000
	(Being Loan from shiv paid)

b)	Loan from Shiv A/c D..	100000
	To Shiv Capital A/c		80000
	To Bank A/c		20000
	(Being Loan from shiv adj against capital and balance paid)

c)	Bank A/c Dr..	37500
	Loan from Shiv A/c D..	100000
	To Shiv Capital A/c		137500
	(Being Loan from shiv adj against capital and balance received)

▶ Video Solution: Coming Soon

Question 20

Realization A/c

Particulars	Amount	Particulars		Amount
To Machinery	700000	By Creditors		600000
To Investments	400000	By Bills Payable		200000
To Debtors	1100000	By Neeraj Capital A/c		500000
To Stock	200000	By Bank : (Debtors)		900000
To Madhur Capital A/c	100000
To Bank A/c (B/P)	200000	By Madhur Capital		100000

		By Realisation Loss :
		Madhur Cap A/c	240000
		Neeraj Cap A/c	160000	400000

Total	2700000	Total		2700000