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DK Goel Solutions Class 12 Accountancy Volume 1 Chapter 5

Commerce

DK Goel Solutions Class 12 Accountancy Volume 1 Chapter 5

Last updated date: 30th Apr 2024

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DK Goel Solutions Class 12 Volume 1 Chapter 5 - Dissolution of a Partnership Firm

Accountancy is a complex subject dealing with recording and calculating the economic entities of a financial and non-financial institution. The subject covers a wide area regarding auditing, tax management, and working at a partnership firm. DK Goel accountancy class 12 solutions Chapter 5 PDF to enhance your Exam Preparation and Score High Marks.

DK Goel Solutions Class 12 Accountancy Volume 1 Chapter 5 PDF

A partnership firm is an organization that is formed by two or more people to run a firm and share its profit and loss. The Indian Partnership Act 1932 governs these companies and sets rules.

When a partner dies or retires, an existing partnership gets dissolved, and a firm runs on the same name as decided by members. Students will learn the rules mandated in section 39 of the Partnership act by referring to Dissolution of Partnership Firm Class 12 DK Goel Solutions.

Breaking or discontinuation of the relationship, which ends the existence of a business is explained in the solution. A Class 12 student has to calculate the wound-up affairs like selling off assets, profits, losses, and liabilities in a balance sheet.

Dk Goel Accountancy Class 12 Solutions Dissolution PDF

Dissolution of a partnership may take place with or without any intervention of the court. Students will learn to calculate the particulars needed in settlements of debts by solving questions from Dissolution of Partnership Firm Class 12 DK Goel Solutions.

The particulars of the balance sheet like private debts, bank loans, intangible assets, general reserve, etc. fall under the assets and liability section. To help students understand these complex equations, the DK Goel Solution comes in PDF format.

A student can easily access and download the solutions at their convenience. Students of Class 12 who desire to score flying grades in boards can refer to the solutions for revision.

DK Goel Accountancy Class 12 Solutions Chapter 5 PDF

Board exams are crucial for every Class 12 student as the scores obtained help in deciding the field of study. Therefore, regular practice of exercises and question papers is mandatory. Dissolution of Partnership Firm Class 12 DK Goel Solutions are in a step-by-step format to strengthen a student’s knowledge of Accountancy.

The DK Goel class 12 book presents pupils with a variety of theories and topics. Students require a firm foundation and must understand the technicalities of accountancy to get the best grades in their exams.

Chapter 5: Partner Death or Retirement

Download DK Goel Accounting Solutions for Class 12 Retirement or a partner's death: Effect of a partner's retirement or death on profit sharing ratio, goodwill treatment (as per AS 26), revaluation of assets and reassessment of liabilities, adjustment of cumulative profits, and reserves, capital account adjustments, and balance sheet preparation. Preparation of the retiring partner's loan account. Calculation of the profit share of the dead partner up to the date of death. Preparation of capital accounts for a deceased partner, an executor's account, and a balance sheet.

One of the core disciplines in the commerce curriculum is accounting. Hundreds of students struggle every year to do well in the course. Students who have a weak foundation in accountancy perceive this subject to be the most difficult and lose scores on the exam.

At the same time, few people believe that the exam days are enough time to prepare for a good grade. Accountancy is, in fact, one of the most popular disciplines among commerce students. However, students will not benefit from memorizing theories before the examination.

Accounting is all about having a clear grasp of concepts and logic, as well as the ability to put them into practice. Scoring full marks in the Class 12 test is a piece of cake if pupils are entirely aware of the principles and their practical application. The biggest issue, however, is keeping track of the program and covering all of the chapters in Accountancy Class 12.

The accounting syllabus for class 12 teaches students a variety of ideas and theories. Students require a firm foundation and must understand the technicalities of accountancy to get the best grades in their exams.

One of the key aspects of a student's career is the Class 12 Board test. This score will assist students in gaining admission to top-tier educational institutions in the future. As a result, every student hopes to do well in the examination. Accounting is heavily weighted in determining the overall proportion of pupils. Accountancy provides students with a plethora of options for building a successful profession.

How to Get Ready for Accountancy in 12th Grade?

Accounting is a discipline with a lot of theories and concepts. The accounting syllabus for class 12 is broken into two parts: Volume 1 and Volume 2. Volume 1 has a total of 5 chapters, while Volume 2 has a total of 6 chapters. As a result, students must memorize each chapter to consolidate their understanding. Here are some of the most successful, tried-and-true strategies for acing the class 12 Accountancy exam:

Make a list of your theories first: Each chapter is jam-packed with definitions, illustrations, definitions, concepts, applications, and examples. Before diving into the value-based challenges, review all of the theories to solidify your understanding of the topics.

Solve a lot of problems in each chapter: Once you've gained a good understanding of a topic, move on to a bunch of questions about it. Complete all of the chapter's questions. Begin with the easiest level and work your way up. Students will be exposed to a variety of new concepts and their applications as they work on the tasks.

The top study materials and books are as follows: In today's world, there is a wealth of free accounting content or books available on the internet. The students, on the other hand, must carefully select the best option. Students can get top-notch advice from DK Goel Class 12 Accountancy Solutions. All of these textbooks are expertly crafted using Prof. DK Goel's extensive knowledge and experience. Expert faculties supplement the DK Goel Solutions as the most premium textbooks.

Examine prior year's question papers: At the end of each chapter in the DK Goel textbook, you'll find the previous year's questions. Students must practice all of the questions to master every detail of a chapter. If they get stuck on a concept, they can look up information in the textbook.

Examine sample papers and take mock examinations in accounting: Sample papers are created to provide pupils with an idea of the questioning pattern and to provide the most important questions. Students can also take practice exams to test their knowledge and prepare for the real thing. Mock tests are the most effective technique for pupils to gain confidence in an exam-like setting.

Read Chapter 5 of DK Goel Solutions Class 12: Retirement or Death of a Partner below. These solutions are based on the current year's Class 12 DK Goel Accountancy book, which is used by commerce stream students, as well as the questions in each chapter.

When a partner retires or dies, the accounting implications of this transition might be significant. Students should be able to account for such events in a partnership form and pass the accounting entries accurately so that the partnership firm's financial statements reflect the correct status.

The chapter provides several questions that will be beneficial to Accountancy students in Class 12 and will also assist in the development of strong concepts that will be beneficial in your career. These solutions are completely free and will assist you in preparing for your Class 12 Accounting exam. Simply scroll down and read the answers that have been provided.

There are four questions in DK Goel Accountancy Class 12 Solutions Chapter 5 PDF, detailed in a table format.

DK Goel Accountancy Class 12 Solutions Chapter 5 Dissolution of Partnership Firm Question 1

The first question requires students to calculate variables in the balance sheet. There are different particulars in assets like cash in hand is Rs. 3920, added with capital account Rs.15000 and sundry is Rs. 1,74,230. While the liability section contains creditors amount Rs. 23,150 added with the capital account of A which is 1,25,000 and capital account of b for Rs. 45,000. This calculation makes a total of Rs. 1,93,150 for both assets and liability. Students are needed to make a balance sheet with an equal amount from assets and liability. So, there are no issues in wound-up amounts.

Again, they have to prepare the realization account so that the debit and credit account total is similar. Here the total rounds up to Rs. 1,99,240 and the sundry assets is Rs. 1,74,230 (Rs. 1,93,150 – 18,920).

DK Goel Accountancy Class 12 Solutions Dissolution PDF Question 2

In the second question, a journal has to be formed by students by calculating particulars in debit and credit format. Here debit is calculated while credit is subtracted from the total amount. It starts with Rs.500 as a debit for realization account and partner capital which is paid to the bank, making the credit clear. The bank account has an amount of Rs. 25,000 and realization amount of Rs. 5000, both of which are paid to the creditor. Moreover, the realization account of A’s capital account is settled by paying the amount of Rs. 400 (2/10x 20,000). The net cash realized is calculated by subtracting the realization account Rs. 5000 from the bank account amount of Rs. 25,000.

DK Goel Accountancy Class 12 Solutions Chapter 5 PDF Question 3

The third question from Dissolution of Partnership Firm Class 12 DK Goel Solutions makes students calculate the particulars in debit and credit amount in the journal of a company. Here the realization account has a debit of Rs. 12,000 which is credited to the bank account as a loan paid. The realization account to A’s capital is Rs. 400, and other debts are made for the purposes like a’s and b’s capital Rs. 28,000, bank account (b’s stock) RS. 1200 and realization account Rs. 2000.

Dissolution of Partnership Firm DK Goel Solutions Question 4

This fourth question requires students to calculate the realization account posting of the transaction made by the company. The particulars on one side include assets Rs. 5,00,000 added with bank liabilities paid Rs. 1,00,000 and realization expenses paid Rs. 5000. The other side includes liabilities Rs. 1,00,000 added with bank assets sold Rs. 4,20,00 and Rs. 85,000 for loss on realization. This calculation makes the total on both sides to Rs. 6,05,000.

The Class 12 Accountancy exam gives weightage to remembering and understanding and applying and analysis. The marks, therefore, are divided between 80 marks for theoretical and 20 marks for the practical paper.

Marks Weightage on Chapter 5 Accountancy Volume 1

DK Goel Accountancy Class 12 Solutions Chapter 5 Dissolution of Partnership Firm	Marks
Unit 2. Accounting for partnership firms	30

Benefits of Revising From Dissolution of Partnership Firm DK Goel Solutions

Students will learn the partnership deed and particulars mentioned while creating the firm from Dissolution of Partnership Firm Class 12 DK Goel Solutions.
They will know the difference between fluctuating and fixed capital, profit and loss appropriation account, reevaluation of assets and liabilities by preparing the balance sheet, etc.
Understanding of the realization account and other related accounts for the balanced wound-up amount.

Students referring to the solution will be able to develop the skills required for pursuing the commerce stream as their field of study.

Access Other Chapters of DK Goel Solutions Class 12 Accountancy Volume 1

Access Other Chapters of DK Goel Solutions Class 12 Accountancy Volume 2

Important Topics Links Related to Class 12 Accountancy Volume 1 Chapter 5

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FAQs on DK Goel Solutions Class 12 Accountancy Volume 1 Chapter 5

1. What are the Ways by Which the Dissolution of a Partnership Firm Takes Place?

Dissolution of a firm may or may not require intervention by the court. The ways by which a partnership firm dissolves are by agreement with the consent of the partner, by compulsory dissolution as one partner becomes insolvent, or when the company uses illegal ways. The other forms of dissolution are expiry of terms, death of a partner, adjudication of a partner as an insolvent, and dissolution by notice. A court can intervene when a partner becomes insane or is guilty of committing a crime and when the business isn’t able to make a recovery from losses, a partner breaches a contract.

2. Can a Partnership Continue After Dissolution?

A partnership can be dissolved by following specific rules or principles. When the firm dissolves though the partners do not contribute to the business, the partnership continues until the settlement of debts.

One of the partners can follow certain steps before deciding to dissolve the partnership like reviewing the partnership agreement, filing a dissolution form, settlement of the closure account, notifying the IRS, customers, and employees. It is better to have a clear discussion about the liability, business debts, and obligations with the partner beforehand.

3. What is the Difference Between the Dissolution of a Partnership Firm and Dissolution of Partnership?

When the jural relationship between the partners comes to an end, it is termed as dissolution of the firm. Whereas, when any one of the partners becomes incapacitated, the partnership between the partners and the firm gets dissolved.

While the termination of the partnership, economic relationships continue to exist but in changed form while in the other, transactions are restricted. In the dissolution of the firm, a realization account is created while a revaluation account is created for partnership dissolution. However, the book of accounts remains closed after firm closure but keeps on operating for partnership dissolution until debts are cleared.

4. One of the partners of a partnership firm has been dissolved. What are the rights of the partners upon the firm's dissolution?

Each partner will have the right to have the firm's assets applied to the firm's liabilities, with the surplus then distributed among the partners. Portions 46 and 48 are two major sections that apply to the division of the firm's assets and the settlement of accounts after the firm's dissolution. Students can clearly understand the concepts of Class 12 Volume 1 Chapter 5 from the Solutions available on Vedantu. Students can read the DK Goel Solutions carefully for understanding the concepts.

5. Following the breakup of the firm in which I was a partner, another partner has started a comparable business under the name of the former firm. Is it possible for me to stop that partner from continuing the business?

Following the firm's dissolution, each partner has the right to prevent any other partner or his representative from carrying on a comparable company in the firm's name or utilizing any of the firm's property for personal gain until the firm's affairs are settled. In one example, it was decided that quota could not be divided upon the dissolution of a partnership since it was not an asset of the partnership but a matter of privilege, and the award of it rested with the responsible authority. As a result, when the quota, which is a license, is dissolved, it cannot be shared.