T S Grewal Solutions 2026-27 [Class 12] – Dissolution of a Partnership Firm – Q 21 to 30

Solution for Q 21 to 30 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, preparatio of partners capital A/c and cash/bank account.

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 21

Realization A/c
Particulars			Amount	Particulars			Amount
Machinery			320000	Sundry Creditors			100000
Investments			300000	Bills Payable			200000
Stock			200000
Debtors			100000	By Bank :
				Machinery		10000
To Bank :				Investments		290000
Realization Exp		10000		Stock		180000
Bills Payable		200000	210000	Debtors		80000	560000

				By Loss transferred to :
				C's Capital A/c		162000
				D Capital A/c		54000
				E's Capital A/c		54000	270000


	Total		1130000		Total		1130000

Note :

No entry passed for creditors settled against machinery

Bills Payable assumed to be settled at Book Value as the question is silent

Partner capital A/c not asked in question, given here for knowledge

Partners Capital A/c
Particulars	A	B	C	Particulars	A	B	C
To Realization A/c -Loss	162000	54000	54000	By Balance B/d	400000	200000	100000



To Bank A/c	238000	146000	46000

Total	400000	200000	100000	Total	400000	200000	100000

Bank A/c not asked in question, given here for knowledge

Bank A/c
Particulars	Amount	Particulars	Amount
To Balance B/d	200000	By Realization A/c	210000
		(liabilities paid)
To Realization A/c	560000	By C's Loan A/c	120000
(asset sold)		By A Capital A/c	238000
		By B Capital A/c	146000
		By C Capital A/c	46000

Total	760000	Total	760000

Journal Entries (not asked in question , given for knowledge)

Realization A/c Dr..	920000
To Machinery		320000
To Investmens		300000
To Stock		200000
To Debtors		100000

Creditors A/c Dr..	100000
BP A/c Dr..	200000
To Realization A/c		300000

Bank A/c Dr..	560000
To Realization A/c		560000

Realization A/c Dr..	200000
To Bank A/c		200000

Realization A/c Dr..	10000
To Bank A/c		10000

C Capital A/c Dr..	162000
D Capital A/c Dr..	54000
E Capital A/c Dr..	54000
To Realization A/c		270000
Asset for liability	No entry

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Question 22

Realization A/c
Particulars			Amount	Particulars			Amount
To Debtors			240000	By Creditors			170000
To Stock			130000	By Ramesh Capital A/c - Stock			55000
To Furniture			200000	By Bank A/c
To Machinery			930000	Stock		65000
To Bank A/c				Debtors		240000
Creditors		170000		Machinery		450000	755000
Unrecorded Bill		140000	310000	By Umesh Capital A/c-Furniture			50000

				By Loss transferred to :
				Ramesh Capital A/c		546000
				Umesh Capital A/c		234000	780000

	Total		1810000		Total		1810000

Following not required in Question but given here only for knowledge on full structure of solution

Partners Capital A/c
Particulars	Ramesh	Umesh	Particulars	Ramesh	Umesh
To Umesh Current A/c		50000	By Balance B/d	700000	300000
To Realization A/c-Stock	55000		By Workmen Comp Res	147000	63000
To Realization A/c-Furniture		50000	By General Reserve	140000	60000
To Realization A/c-Loss	546000	234000	By Ramesh Current A/c	80000
To Bank A/c	466000	89000

Total	1067000	423000	Total	1067000	423000

Partners Current A/c
Particulars	Ramesh	Umesh	Particulars	Ramesh	Umesh
To Balance B/d		50000	By Balance B/d	80000

To Ramesh capital A/c	80000		by Umesh Capital A/c		50000



Total	80000	50000	Total	80000	50000

Bank A/c
Particulars	Amount	Particulars			Amount
To Balance B/d	110000	By Realization A/c-Creditors, Bill			310000
To Realization A/c-Assets	755000	By Partner Capital A/c
			Ramesh	466000
			Umesh	89000	555000

Total	865000	Total			865000

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Question 23

Realization A/c
Particulars			Amount	Particulars			Amount
To Building			300000	By Prov for Bad Debts			4000
To Investment			30000	By Sundry Creditors			129400
To Debtors			71400	By Mrs Pradeep Loan			40000
To Goodwill			10000	By Investment Fluc Res			8000
To Pradeep Capital			40000	By Paresh Capital - Investment			27000
(Pradeep wife loan)

To Bank :				By Bank :
Creditors		127243		Building		350000
Realization Expenses		2500	129743.33	Debtors		71400	421400

To Pradeep Capital A/c (Commission)			10000

To Profit on Realization transferred :
Pradeep Capital A/c		19328
Rajesh Capital A/c		19328	38657


	Total		629800		Total		629800

Note :
a) Profit and Loss A/c will not come in realization A/c
b) Payment to Creditors	129400-(12940010/1002/12)
c) Paresh loan is a partner loan and will not be transferred to realization A/c

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Question 24

Realization A/c
Particulars			Amount	Particulars			Amount
To Stock			24000	By Trade Creditors			42000
To Debtors			19000	By Employees Provident Fund			60000
To Furniture			40000	By Mrs Ashish Loan			9000
To Plant			210000	By Investment Fluctuation Reserve			4000
To Investments			32000	By Ashish Capital A/c - Furniture			38000
To Ashish Capital A/c - Mrs Ashish Loan			9000	By Bank
To Kanav Capital A/c - Realization Exp			12000	Debtors		18500
To Bank - Employees Provident Fund			60000	Plant		231000.0
				Stock		15840.0	265340.0

				By Kanav Capital A/c - Stock			7680
To Profit on Realization transferred :
	Ashish Capital A/c	12012.0
	Kanav Capital A/c	8008.0	20020.0


	Total		426020.0		Total		426020.0

Following not required in Question but given here only for knowledge on full structure of solution

Partners Capital A/c
Particulars	Ashish	Kanav	Particulars	Ashish	Kanav
To Realization -Furniture	38000		By Balance B/d	120000	80000
To Realization -Stock		7680	By Realization A/c - Profit	12012.0	8008.0
To Profit and Loss A/c	6000	4000	By Realization- Mrs Ashish Loan	9000
			By Realization - Realization Exp		12000
			By Workmen Comp Fund	12000	8000

To Bank A/c	109012.0	96328.0

Total	153012.0	108008.0	Total	153012.0	108008.0

Bank A/c
Particulars	Amount	Particulars			Amount
To Balance B/d	35000	By Realization A/c - EPF			60000
		By Kanav's Loan			35000

To Realization A/c - Assets	265340.0	By Partner Capital A/c
			Ashish	109012.0
			Kanav	96328.0	205340.0

Total	300340.0	Total			300340.0

Kanav's Loan
Particulars	Amount	Particulars	Amount
To Bank A/c	35000	By Balance B/d	35000

Total	35000	Total	35000

	Working Note :
1	No entry required for creditors settled against investments
2	Kanav Took Stock at	(24000 X 40/100 X 80/100)
3	No entry will be made for realization expenses in firms books as Kanav has agreed to bear the expenses

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Question 25

a)	Realization A/c Dr..	1205000
	To Sundry Debtors A/c		195000
	To Stock A/c		300000
	To Fixed Assets A/c		710000
	(Being assets transferred to realization A/c)

b)	Provision for bad Debts A/c Dr..	5000
	Creditors A/c Dr..	200000
	To Realization A/c		205000
	(Being Liabilities transferred to realization A/c)

c)	Bank A/c Dr..	1149000
	To Realization A/c		1149000

	Note :
	Fixed Assets		675000
	To Stock A/c		339000
	To Debtors A/c		135000
	(Being Amount realizaed from sale of assets)

d)	Realization A/c Dr..	185000
	To Bank A/c		185000
	(Being creditors paid)

e)	Realization A/c Dr..	19000
	To Bank A/c		19000
	(Being realization expenses)

f)	A's Capital A/c	22000
	B's Capital A/c	22000
	C's Capital A/c	11000
	To Realization A/c		55000
	(Being loss on realization transferred to capital A/c)

g)	A's Capital A/c	728000
	B's Capital A/c	278000
	C's Capital A/c	239000
	To Bank A/c		1245000
	(Being final payment made to partners)

Working Note :

Realization A/c
Particulars		Amount	Particulars			Amount
To Sundry Debtors		195000	By Prov for Bad Debts			5000
To Stock		300000	By Creditors			200000
To Fixed Assets		710000
			By Bank
To Bank A/c - Creditors		185000	Debtors		135000
To Bank A/c - Realization Exp		19000	Stock		339000
			Fixed Assets		675000	1149000

			By Loss on realization transferred :
			A's Capital A/c		22000
			B's Capital A/c		22000
			C's Capital A/c		11000	55000

	Total	1409000		Total		1409000

Partners Capital A/c
Particulars	A	B	C	Particulars	A	B	C
To Realization A/c-Loss	22000	22000	11000	By Balance B/d	750000	300000	250000



To Bank A/c	728000	278000	239000

Total	750000	300000	250000	Total	750000	300000	250000

Bank A/c
Particulars	Amount	Particulars		Amount
To Balance B/d	300000	By Realization A/c - Creditors		185000
		By Realization A/c - Realization Exp		19000
To Realization A/c	1149000	By Partner Capital A/c
(Assets sold)		A	728000
		B	278000
		C	239000	1245000

Total	1449000	Total		1449000

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Question 26

Realization A/c
Particulars			Amount	Particulars			Amount
To Sundry Assets			1630000	By Creditors			200000
				By Bills Payable			60000
To Bank				By Others			340000
Creditors		199000
Bills Payable		59000		By Bank - Sundry Assets			1400000
WCC		40000		By Workmen Comp Res			40000
Dissolution Exp		30000
Others (at BV)		340000	668000

				By Loss on Realization:
				Mike Capital A/c		154800
				Ajay Capital A/c		103200	258000

	Total		2298000		Total		2298000

Partners Capital A/c
Particulars	Mike	Ajay	Particulars	Mike	Ajay
To Realization	154800	103200	By Balance B/d	600000	400000
(Loss)			By Work Comp Res	36000	24000

To Bank A/c	481200	320800

Total	636000	424000	Total	636000	424000

Cash A/c
Particulars	Amount	Particulars			Amount
To Balance B/d	70000	By Realization A/c - Liabilities			668000
To Realization A/c-Assets	1400000
		By Partners Capital A/c
			Mike	481200
			Ajay	320800	802000

Total	1470000	Total			1470000

Note :

Workmen Compensation Reserve A/c Dr..	100000
To Realization A/c		40000
To Mike Capital A/c		36000
To Ajay Capital A/c		24000

Note :

Creditors (200000-(200000*3/100*2/12))

Creditors were due on 31st May but were paid on 31st March, 2 months early

(2 months interest)

Note :

Other liabilities of Rs 340000 assumed to be paid at BV

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Question 27

Realization A/c
Particulars			Amount	Particulars			Amount
To Sundry Debtors			170000	By Prov for Bad Debts			20000
To Stock			150000	By Sundry Creditors			60000
To Investments			250000	By Arnab Brother Loan			95000
To Building			300000	By Inv Fluc Reserve			50000

To Arnab Cap A/c			95000	By Bank :
				Investments		200000
To Bank:				Buildings		350000
Creditors			54000	Stock		60000
				Debtors		170000	780000

To Dhrupad Cap A/c			3000	By Ragini Cap A/c			60000

To Profit on Realiation
Arnab		25800
Ragini		8600
Dhrupad		8600	43000

	Total		1065000		Total		1065000

Partners Capital A/c
Particulars	Arnab	Ragini	Dhrupad	Particulars	Arnab	Ragini	Dhrupad
				By Balance B/d	275000	200000	170000
To Realization		60000		By Realisation (Profit)	25800	8600	8600
(Stock taken)				By Realisation	95000
To P&L A/c	30000	10000	10000	(Arnab Brother loan)
				By Realisation			3000
				(Realisation exp)
To Bank A/c	365800	138600	171600

Total	395800	208600	181600	Total	395800	208600	181600

▶ Video Solution: Coming Soon

Question 28

Realization A/c
Particulars		Amount	Particulars			Amount
To Building A/c		45000	By Creditors			14000
To Machinery		15000
To Furniture		12000
To Debtors		8000	By Bank:
To Stock		24000	Stock		22000
			Debtors		7500
To Bank A/c - Realization Exp		2500	Machinery		16000
To Bank A/c - Creditors		14000	Building		35000	80500

			By Yale Capital A/c - Furniture			9000
			By Loan from Bale A/c			500
			(3000 - 2500)

			By Loss on realization trans :
			Bale Capital A/c		8250
			Yale Capital A/c		8250	16500

	Total	120500		Total		120500

Partners Capital A/c
Particulars	Bale	Yale	Particulars	Bale	Yale
To Realization A/c - Loss	8250	8250	By Balance B/d	50000	40000
To Realization A/c - Furniture		9000	By General Reserve	4000	4000


To Bank A/c	45750	26750

Total	54000	44000	Total	54000	44000

Bank A/c
Particulars	Amount	Particulars		Amount
To Balance B/d	11000	By Realization A/c-Creditors		14000
		By Realization A/c-Rea Exp		2500
		By Loan from Bale		2500
To Realization A/c	80500	By Partner Capital A/c
(Sale of assets)		Bale	45750
		Yale	26750	72500

Total	91500	Total		91500

Loan by Bale
Particulars	Amount	Particulars	Amount
To Bank A/c	2500	By Balance B/d	3000
To Realization A/c	500





Total	3000	Total	3000

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Question 29

Realization A/c
Particulars		Amount	Particulars			Amount
To Stock		6000	By Creditors			38000
To Debtors		19000	By Loan by Mrs A			10000
To Furniture		4000
To Plant		28000	By A's Capital A/c - Investments			8000
To Investments		10000

To A's Capital A/c		10000	By Bank A/c:
(Mrs A's Loan)			Stock	5000
To Bank A/c - Rea Exp		1600	Debtors	18500
To Bank A/c - Creditors		37000	Furniture	4500
			Plant	25000		53000
			By Loss on realization transferred :
			A's Capital A/c		3960
			B's Capital A/c		2640	6600

	Total	115600		Total		115600

Partners Capital A/c
Particulars	A	B	Particulars	A	B
To Realization A/c - Loss	3960	2640	By Balance B/d	10000	8000
To Profit and Loss A/c	4500	3000	By Reserve	3000	2000
To Realization A/c - Investment	8000		By Realization A/c - Ms A's Loan	10000

To Bank A/c	6540	4360

Total	23000	10000	Total	23000	10000

Bank A/c
Particulars	Amount	Particulars			Amount
To Balance B/d	11500	By Realization A/c-Liabilities Paid			37000
		By Realization A/c-Realization Exp			1600
		By Loan by B			15000
To Realization A/c-Sale of assets	53000	By Partner Capital A/c
			A	6540
			B	4360	10900

Total	64500	Total			64500

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Question 30

Realization A/c
Particulars		Amount	Particulars			Amount
To Stock		20100	By Creditors			50400
To Debtors		62600
To Investments		16000	By A's Capital A/c - Investments			18000
To Furniture		6500
To Building		23500	By Bank A/c
			Fixed Assets		29700
To Bank A/c - Rea Exp		1300	Stock and Debtors		80000	109700
To Bank A/c - Creditors		49600
To Bank A/c -		1500
(Dishonoured Bill)

			By Loss on realization transferred :
			A's Capital A/c		1000
			B's Capital A/c		1000
			C's Capital A/c		1000	3000


	Total	181100		Total		181100

Partners Capital A/c
Particulars	A	B	C	Particulars	A	B	C
				By Balance B/d	40000	25000	15000
To Realization A/c-Loss	1000	1000	1000	By General Reserve	4000	4000	4000
To Loan to A	10000
To Realization A/c-Inv	18000

To Bank A/c	15000	28000	18000

Total	44000	29000	19000	Total	44000	29000	19000

Bank A/c
Particulars	Amount	Particulars			Amount
To Balance B/d	3700	By Realization - Realization Exp			1300
		By Realization - Creditors			49600
To Realization A/c-Assets	109700	By Realization - Dishonoured bill			1500

		By Partners Capital A/c
			A	15000
			B	28000
			C	18000	61000

Total	113400	Total			113400

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Q 1-10 | Q 11-20 | Q 21-30 | Q 31-40 | Q 41-46

T S Grewal Solutions – Dissolution of a Partnership Firm– All Questions

T S Grewal Solutions Class 12 2026-27 – All Chapters

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