Numerical Example of Assets Realisation

Q. Following differences have arisen among P, Q and R. State who is correct in each case:
(a) P used ₹ 20, 000 belonging to the firm and made a profit of ₹ 5, 000. Q and R want the amount to be given to the firm?
(b) Q used ₹ 5, 000 belonging to the firm and suffered a loss of ₹ 1000. He wants the firm to bear the loss?
(c) P and Q want to purchase goods from A Ltd., R does not agree?
(d) Q and R want to admit C as partner, P does not agree?

Q.

Is the loan by a partner transferred to Realisation Account at the time of dissolution of a partnership firm? Why?

Q. If partner agreed to take over assets, account is debited.

1. bank
2. liability
3. partner's capital
4. revaluation

Q.

Partner’s loan is ___in the (Realisation Account).

1. Cash balance

2. Liability

3. Assets

4. Realisation Expense

Q.

The expenses of Realisation are _______________ Realisation A/c.

1. debited to

2. None of these

3. not shown in

4. credited to

Q.

When the firm has agreed to pay the partner a fixed amount for realisation work irrespective of the actual amount spent, such fixed amount is credited to ___________.

1. None of these

2. Capital account

3. Realisation account

4. Bank account

Q.

When the unrecorded asset is taken over by any partner, which account shall be debited ?

1. Partner`s loan account

2. Partner`s capital account

3. None of these

4. Bank account

Q.

For expenses of realisation when actual expenses are paid by the partner on behalf of the firm, which account is credited ?

1. Partner`s loan account

2. Expenses` account

3. None of these

4. Partner`s capital account

Q. Partner takes over the investment of 20, 000. So the account will be credited on the transfer of ownership of the investment to partner.

1. partner's capital
2. bank
3. realisation
4. revaluation

Q. The usual way of settling the loan is by debiting the account and crediting the account.

1. bank
2. liability
3. partner's capital
4. realisation

Q. The total of debit side comes down to Rs. 9, 30, 000 while the total of credit side comes down to Rs. 4, 90, 000. So there’s a of Rs. 4, 40, 000.

1. realisation profit
2. net profit
3. net loss
4. realisation loss

Q. The following is the Profit and Loss Account of Yamuna Limited:

Statement of Profit and Loss of Yamuna Ltd., for the Year ended March 31, 2017
Particulars		Note No.	Amount (Rs)
i)	Revenue from Operations		10, 00, 000
ii)	Expenses
	Cost of Materials Consumed	1	50, 000
	Purchase of Stock-in-trade		5, 00, 000
	Other Expenses	2	3, 00, 000
	Total Expenses		8, 50, 000
iii)	Profit before Tax (i – ii)		1, 50, 000

Q. Mr. X being a partner takes over the asset of Rs. 50, 000 at a price of Rs. 30, 000. So the partner's capital account is debited with the amount of .

1. Rs. 50, 000
2. Rs. 20, 000
3. Rs. 80, 000
4. Rs. 30, 000

Q. Select the most appropriate alternative from those given below and rewrite the statement.

Under fixed capital method, salary or commission to partner is credited to _______________ account.
a) partner’s capital
b) partner’s current
c) partner’s drawings
d) partner’s salary.

Q.

Q. Give two circumstances in which the Fixed Capitals of partners may change.

Q. Q Ltd. forfeited 300 shares of Rs. 10 each, fully called-up for non-payment of Final Call money of Rs 4 per share. These were subsequently reissued bt the company for Rs 12 per share as fully paid-up. What amount of Forfeited Shares Account is to be transferred to Capital Reserve?

Q. If any asset is taken over by partner from firm his capital A/c will be ______.

1. credited
2. debited
3. added
4. none of these