T S Grewal Solutions 2026-27 [Class 12] – Dissolution of a Partnership Firm – Q 31 to 40

Solution for Q 31 to 40 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 1

Amount realized by Debtors

Debtors	Part 1	Part 2	Total
Book Value	10000	8600	18600
Amt Realized	8000	4300	12300

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Question 2

No entry required for unrecorded typewriter taken over by creditor. However this will be adjusted

in the balance creditor payment

Partners Capital A/c
Particulars	Shilpa	Meena	Nanda	Particulars	Shilpa	Meena	Nanda
To Balance B/d			23000	By Balance B/d	80000	40000
				By Real - Profit	10470	6980	3490
To Realization A/c	35000			By Realization A/c	20000
(Stock)				(Bank Loan)
				By General Reserve	6000	4000	2000
To Cash A/c	81470	50980		By Cash A/c			17510

Total	116470	50980	23000	Total	116470	50980	23000

Cash A/c
Particulars	Amount	Particulars			Amount
To Balance B/d	10840	By Realization A/c - Creditors			31000
		By Realization A/c - Realization Exp			1200
To Realization A/c-Assets	136300	By Partner Capital A/c
			Shilpa	81470
To Partner Capital A/c - Nanda	17510		Meena	50980
					132450

Total	164650	Total			164650

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Question 31

Realization A/c
Particulars			Amount	Particulars			Amount
To Land			81000	By Bank Loan			20000
To Stock			56760	By Creditors			37000
To Debtors			18600	By Prov for Doubtful Debts			1200

To Shilpa Capital A/c			20000	By Cash
( Bank Loan)
To Cash A/c - Rea Exp A/c			1200	Stock		14000
To Cash A/c - Creditors				Debtors		12300
(37000-6000)			31000	Land		110000	136300

				By Shilpa's Capital A/c - Stock			35000

To Profit on Realization:
Shilpa Capital A/c		10470
Meena Capital A/c		6980
Nanda Capital A/c		3490	20940


	Total		229500		Total		229500

Note :
1	Amount realized by Debtors

Debtors	Part 1	Part 2	Total
Book Value	10000	8600	18600
Amt Realized	8000	4300	12300

2	No entry required for unrecorded typewriter taken over by creditor. However
	this will be adjusted in the balance creditor payment

Partners Capital A/c
Particulars	Shilpa	Meena	Nanda	Particulars	Shilpa	Meena	Nanda
To Balance B/d			23000	By Balance B/d	80000	40000
				By Real - Profit	10470	6980	3490
To Realization A/c	35000			By Realization A/c	20000
(Stock)				(Bank Loan)
				By General Reserve	6000	4000	2000
To Cash A/c	81470	50980		By Cash A/c			17510

Total	116470	50980	23000	Total	116470	50980	23000

Cash A/c
Particulars	Amount	Particulars			Amount
To Balance B/d	10840	By Realization A/c - Creditors			31000
		By Realization A/c - Realization Exp			1200
To Realization A/c-Assets	136300	By Partner Capital A/c
			Shilpa	81470
To Partner Capital A/c - Nanda	17510		Meena	50980
					132450

Total	164650	Total			164650

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Question 32

Realization A/c
Particulars			Amount	Particulars			Amount
To Stock			50000	By Creditors			40000
To Sundry Debtors			50000	By Provision for Liability			5000
To Land and Building			57000	By Bank A/c:
				Land and Building		40000
To Bank A/c				Stock		30000
Liability for suit		20000		Debtors		42000	112000
Creditors		40000	60000
To Bank A/c - Real Exp			1200	By Michael Capital A/c - Car			20000
To Michael Capital A/c			20000
(O/s Salary)				By Loss on realization trans :
				Michael's Capital A/c		30600
				Jackson's Capital A/c		20400
				John's Capital A/c		10200	61200


	Total		238200		Total		238200

Partners Capital A/c
Particulars	Michael	Jackson	John	Particulars	Michael	Jackson	John
				By Balance B/d	60000	40000	10000
To Realization A/c-Loss	30600	20400	10200	By Workmen Comp	10500	7000	3500
To Profit and loss A/c	7500	5000	2500	By Realization A/c-Salary	20000
To Advertisement Suspen	3000	2000	1000
To Realization A/c - Car	20000

To Bank A/c	29400	19600		By Bank A/c			200

Total	90500	47000	13700	Total	90500	47000	13700

Bank A/c
Particulars	Amount	Particulars			Amount
To Balance B/d	3000	By Realization A/c - Liabilities			60000
To Realization A/c - Assets	112000	By Realization A/c - Expenses			1200
To John Capital A/c	200	By Loan by Michael			5000

		By Partners Capital A/c
			Michael	29400
			Jackson	19600
					49000

Total	115200	Total			115200

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Question 33

Realization A/c
Particulars			Amount	Particulars			Amount
To Sundry Debtors			26000	By Prov for Doubtful Debts			2000
To Investments			40000	By Bank Overdraft			30000
To Stock			10000	By Investment Fluctuation Reserve			20000
To Furniture			10000
To Building			60000	By Prashant Capital A/c - Investment			35000

To Bank A/c				By Bank A/c
Compensation		10000			Debtors	26000
Bank Overdraft (At BV)		30000	40000		Stock	8500
					Furniture (At BV)	10000
					Building	100000	144500

To Profit Transferred to :
Prashant Capital A/c		27300
Rajesh Capital A/c		18200	45500



	Total		231500		Total		231500

Partners Capital A/c
Particulars	Prashant	Rajesh	Particulars	Prashant	Rajesh
To Balance B/d		30000	By Balance B/d	50000	0
To Realization A/c - Investment	35000		By Realization A/c - Profit	27300	18200
			By General Reserve	33600	22400



To Bank A/c	75900	10600

Total	110900	40600	Total	110900	40600

Bank A/c
Particulars	Amount	Particulars			Amount
To Balance B/d	10000	By Realization - Liabilities			40000
To Cash A/c	6000	By Loan by Prashant			34000
To Realization A/c - Assets	144500
		By Partner Capital A/c
			Prashant	75900
			Rajesh	10600	86500

Total	160500	Total			160500

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Question 34

Realization A/c
Particulars			Amount	Particulars			Amount
To Investments			30000	By Prov for Bad Debts			4000
To Debtors			73400	By Creditors			80000
				By Loan by Mrs Yogesh			42000
To Yogesh Capital (Wife Loan)			42000	By Investment Fluctuation Reserve			8000

To Bank				By Bank :
Creditors			78000	Debtors		60060
				Bad Debts Recovered		16670
To Naresh Capital (Remuneration)			10000	Unrecorded Asset		10000	86730

				By Naresh Capital (Investment)			26000

To Profit Transferred to :
Yogesh Capital A/c		6665
Naresh Capital A/c		6665	13330



	Total		246730		Total		246730

Note :

Payment for Liabilities			Creditors
Book Value			80000
Discount Rate			15%
Period (Months)			2
Discount Amount			2000

Net Amount Paid			78000

Partners Capital A/c
Particulars	Yogesh	Naresh	Particulars	Yogesh	Naresh
			By Balance B/d	21000	21000
To Advertisement Suspence A/c	55300	55300	By Realization A/c - Profit	6665	6665
To Realization A/c - Investments		26000	By Realization A/c - Wife's Loan	42000
			By Realization A/c - Remuneration		10000

To Bank A/c	14365		By Naresh Loan A/c		43635

Total	69665	81300	Total	69665	81300

Bank A/c
Particulars	Amount	Particulars	Amount
To Balance B/d	6000	By Loan by Naresh	365
To Realization A/c	86730	By Real A/c - Sundry Liabilities	78000
(Sundry Assets)		By Partner Capital A/c - Yogesh	14365


Total	92730	Total	92730

Loan By Naresh A/c
Particulars	Amount	Particulars	Amount
To Naresh Capital A/c	43635	By Balance B/d	44000
To Bank A/c	365


Total	44000	Total	44000

Note :

Normally the loan given by partner to firm is directly paid through bank A/c and is not transferred to capital A/c

But in this case there is debit balance in Naresh A/c after all adjustments

So instead of asking Narresh to pay the deficiency and then pay his loan,

The recovery for capital is directly made from his loan A/c

And the balance amount of loan Rs 365 is paid to him

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Question 35

Realization A/c
Particulars			Amount	Particulars			Amount
To Sundry Debtors			58000	By Sundry Creditors			45500
To Stock			39500
To Machinery			48000
To Investments			42000	By Babu Capital A/c - Machinery			45000
To Freehold Property			50500	By Ashok Capital A/c - Investment			42000
				By Chetan Capital A/c - Freehold Property			55000
To Bank A/c
	Creditors	44100		By Bank
			44100		Debtors	56500
To Bank A/c - Realization Exp			3000		Stock	36500
					Office Computer	9000	102000
To Profit on Realization Transferred
Ashok Capital A/c		2200
Babu Capital A/c		1467
Chetan Capital A/c		733	4400

	Total		289500		Total		289500

Partners Capital A/c
Particulars	Ashok	Babu	Chetan	Particulars	Ashok	Babu	Chetan
			0	By Balance B/d	70000	55000	27000
				By Realization A/c - Profit	2200	1467	733
To Realization A/c -Assets	42000	45000	55000	By partner Current A/c	10000	5000	3000

To Bank A/c	40200	16467		By Bank A/c			24267

Total	82200	61467	55000	Total	82200	61467	55000

Partners Current A/c
Particulars	Ashok	Babu	Chetan	Particulars	Ashok	Babu	Chetan
To Capital A/c	10000	5000	3000	By Balance B/d	10000	5000	3000





Total	10000	5000	3000	Total	10000	5000	3000

Bank A/c
Particulars		Amount	Particulars			Amount
To Balance B/d		7500	By Loan by Babu			30000
			By Realization A/c - Liabilities			44100
			By Realization A/c - Expenses			3000
To Realization A/c - Assets		102000	By Partner Capital A/c
				Ashok	40200
To Partner Capital A/c				Babu	16467	56667
	Chetan	24266.67


Total		133766.67	Total			133766.67

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Question 36

Realization A/c
Particulars			Amount	Particulars			Amount
To Stock			75000	By Prov for Doubtful Debts			6000
To Sundry Debtors			66000	By Sundry Creditors			105000
To Plant and Machinery			45000
To Land and Buildings			48000
				By Rita's Loan - Stock (750000.250.8)			15000
To Bank A/c				By Rita's Loan - Gain			10000
	Creditors	94500		By Bank A/c
(105000-10500)			94500		Sundry Debtors	54000
					Stock (At BV)	56250
To Bank A/c - Expenses			5250		Plant and Machinery (At BV)	45000
					Land and Building	120000	275250

To Profit Transferred to :				By Rita's Capital A/c - Goodwill			30000
Rita Capital A/c		53750
Sobha Capital A/c		53750	107500

	Total		441250		Total		441250

Partners Capital A/c
Particulars	Rita	Sobha	Particulars	Rita	Sobha
			By Balance B/d	90000	30000
			By Realization A/c - Profit	53750	53750
			By General Reserve	12000	12000
To Realization A/c	30000
(Goodwill)

To Bank A/c	125750	95750

Total	155750	95750	Total	155750	95750

Bank A/c
Particulars	Amount	Particulars			Amount
To Balance B/d	30000	By Realization - Liabilities			94500
To Cash	6000	By Realization - Expenses			5250
To Realization A/c - Assets	275250
To Loan to Sobha	10000	By Partner Capital A/c
			Rita	125750
			Shobha	95750	221500

Total	321250	Total			321250

Loan By Rita
Particulars	Amount	Particulars	Amount
To Realization A/c	15000	By Balance B/d	25000
To Realization A/c	10000

Total	25000	Total	25000

Note :
1	No entry required for settling unrecorded liability against unrecorded assets
2	Normally Loan by partner to firm is repaid in cash so entry made directly in bank A/c
	But in this case the loan is settled through payment by stock
	Also understand that the stock given for settllement is of less value then loan
	So there will be a profit on settlement of loan which will be taken to Realization A/c

Normal Entry
Loan by Rita A/c Dr..	15000		(750000.250.8)
To Bank A/c		15000	(750000.250.8)
Entry in this question
Loan by Rita A/c Dr..	25000
To Realization A/c - Stock		15000
To Realization A/c - Gain		10000

(In other words loan of Rs 25000 is settled through an asset of Rs 15000)

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Question 37

Partners Capital A/c
Particulars	Raina	Meena	Particulars	Raina	Meena
To Balance B/d		20000	By Balance B/d	40000
To Profit and Loss A/c	5000	5000
To Realization A/c - Asset		2000	By General Reserve	3500	3500
To Realization A/c - Loss	30000	30000	By Realization A/c - Liability	3000
To Bank - Expenses	1000

To Bank A/c	10500		By Bank A/c		53500

Total	46500	57000	Total	46500	57000

Note :

Interest on Raina loan Rs 500 will not come in partner capital A/c

▶ Video Solution: Coming Soon

Question 38

Memorandum Balance Sheet
Liabilities		Amount	Assets	Amount
Angad Capital A/c	50000		Sundry Assets	120000
Raman Capital A/c	40000	90000	(Balancing Figure)

Creditors		30000


Total		120000	Total	120000

Realization A/c
Particulars		Amount	Particulars			Amount
To Sundry Assets		120000	By Creditors			30000

To Bank A/c -		30000	By Bank A/c - Sundry Assets			100000
(Creditors (At BV))


			By Loss on realization transferred :
			Angad's Capital A/c		10000
			Raman's Capital A/c		10000	20000

	Total	150000		Total		150000

Note :

Partners Capital A/c
Particulars	Angad	Raman	Particulars	Angad	Raman
			By Balance B/d	50000	40000
To Realization A/c-Loss	10000	10000

To Bank A/c	40000	30000

Total	50000	40000	Total	50000	40000

Note : Bank Account not required in the question. It is given here only for reference

Bank A/c
Particulars	Amount	Particulars			Amount
To Balance B/d	0	By Realization A/c - Liabilities			30000
To Realization A/c - Assets	100000
		By Partner Capital A/c
			Angad	40000
			Raman	30000	70000

Total	100000	Total			100000

▶ Video Solution: Coming Soon

Question 39

Memorandum Balance Sheet
Liabilities		Amount	Assets	Amount
A's Capital A/c	30000		C's Capital A/c	5000
B's Capital A/c	20000	50000
			Sundry Assets	65000
Liabilities		20000	(Balancing Figure)


Total		70000	Total	70000

Realization A/c
Particulars		Amount	Particulars			Amount
To Sundry Assets		65000	By Liabilities			20000

To Bank A/c -		20000	By Bank A/c - Sundry Assets			50000
(Liabilities - (At BV))
			By Loss on realization transferred :
			A's Capital A/c		7500
			B's Capital A/c		4500
			C's Capital A/c		3000	15000


	Total	85000		Total		85000

Partners Capital A/c
Particulars	A	B	C	Particulars	A	B	C
To Balance B/d			5000	By Balance B/d	30000	20000	0
To Realization A/c	7500	4500	3000
(Loss)

To Bank A/c	22500	15500		By Bank A/c			8000

Total	30000	20000	8000	Total	30000	20000	8000

Bank A/c
Particulars	Amount	Particulars		Amount
To Balance B/d	0	By Realization A/c - Liabilities		20000
To Realization A/c - Assets	50000
To Partner Capital A/c		By Partner Capital A/c
C	8000	A	22500
		B	15500	38000

Total	58000	Total		58000

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Question 40

Memorandum Balance Sheet
Liabilities		Amount	Assets	Amount
A's Capital A/c	7000		Sundry Assets	21250
B's Capital A/c	4000	11000	(Balancing Figure)

(Interest on Loan) to A		4500
(Interest on Loan) to B		750
Other Liabilities		5000

Total		21250	Total	21250

Note :
Read like this to understand better. This clariifies that it is a liability
Interest due, on loan A/c, to A	4500
Interest due, on loan A/c, to B	750

Realization A/c
Particulars			Amount	Particulars		Amount
To Sundry Assets			21250	By Creditors		5000

To Bank A/c			5000	By Bank A/c - Sundry Assets		24000
(Creditors (At BV))


To Profit on realization transferred :
A's Capital A/c		1750
B's Capital A/c		1000	2750

	Total		29000		Total	29000

Note :	0

Partners Capital A/c
Particulars	A	B	Particulars	A	B
			By Balance B/d	7000	4000
			By Realization A/c	1750	1000
			(Profit)

To Bank A/c	8750	5000

Total	8750	5000	Total	8750	5000

Bank A/c
Particulars	Amount	Particulars			Amount
To Balance B/d	0	By Realization A/c - Liabilities			5000
To Realization A/c - Assets	24000
		To Interest due on Loan to A			4500
		To Interest due on Loan to B			750

		By Partners Capital A/c
			A	8750
			B	5000	13750

Total	24000	Total			24000

▶ Video Solution: Coming Soon

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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