How deficiency of crditors is paid off a | Class 12 Accountancy Chapter Dissolution of a Partnership Firm, Dissolution of a Partnership Firm NCERT Solutions

Welcome to the NCERT Solutions for Class 12 Accountancy - Chapter Dissolution of a Partnership Firm. This page offers a step-by-step solution to the specific question from Exercise 2, Question 4:

How deficiency of crditors is paid off at the time of dissolution of firm.

. With detailed answers and explanations for each chapter, students can strengthen their understanding and prepare confidently for exams. Ideal for CBSE and other board students, this resource will simplify your study experience.

Question 4:

How deficiency of crditors is paid off at the time of dissolution of firm.

Answer:

For settlement with the creditor through transfer of assets when a creditor
accepts an asset in full and final settlement of his account, journal entry needs to be recorded. But, if the creditor accepts an asset only as part payment of his/her dues, the entry will be made for cash payment only. For example, a creditor to whom Rs. 10,000 was due accepts office equipment worth Rs 8,000 and is paid Rs. 2,000 in cash, the following entry shall be made for the payment of Rs. 2,000 only.

Realisation A/c Dr.

To Bank A/c

However, when a creditor accepts an asset whose value is more than the amount due to him, he/she will pay cash to the frim for the difference for which the entry will be:

Bank A/c Dr
To Realisation A/c
(For payment of realisation expenses )

(a) When some expenses are incurred and paid by the firm in the process of
realisation of assets and payment of liabilities: 12

Realisation A/c. Dr.

To Bank A/c

Study Tips for Answering NCERT Questions:

NCERT questions are designed to test your understanding of the concepts and theories discussed in the chapter. Here are some tips to help you answer NCERT questions effectively:

  • Read the question carefully and focus on the core concept being asked.
  • Reference examples and data from the chapter when answering questions about Dissolution of a Partnership Firm.
  • Review previous year question papers to get an idea of how such questions may be framed in exams.
  • Practice answering questions within the time limit to improve your speed and accuracy.
  • Discuss your answers with your teachers or peers to get feedback and improve your understanding.

Latest Blog Posts

Stay updated with our latest educational content and study tips

How to Build a Career in Data Analytics Without a Computer Science Degree

All businesses are gathering information on customers, products, employees, and expenditures, and someone must make decisions based on the data. That individual is the data analyst. Unlike many career changers imagine, the job is open to a broader cross-section of the population than a typical career change. A lot of working analysts trained in commerce, … Read more

Read More

Life Insurance vs Health Insurance: Why Families May Need Both

Are often purchased, talked and planned as being a replacement for another. They aren’t. One safeguards your family’s income in your absence and the other safeguards your family’s savings in the event that someone becomes ill. An examination of what they do, what they do not do, and why they are missing it when one … Read more

Read More

Home Loan vs Savings: Compare the Costs Before Buying a Home

Pay upfront, or pay off less and over time? The truth depends on four factors most consumers will never compare at the same time: the interest rate on the house loan, the interest rate on the savings account, the rate of home price appreciation, and the cost of renting the home until you actually buy … Read more

Read More

Business After 30 or a Stable Job: Which Path Should You Choose?

Thirty is when the question starts to get raised and you’re able to do something because you know you have the experience—you know you have the responsibility. Here are some ways to consider the choice based on a realistic assessment without idealizing either aspect. Restlessness is one of those things that appears in your early … Read more

Read More
View All Blog Posts

Related Resources

Exam Information

Get detailed information about CBSE exams, patterns, and preparation tips

View Exam

Full Form

Learn about Full form significance

Explore

Calculator

Use our online calculator for quick calculations and problem solving

Use Calculator

Glossary

Browse our comprehensive glossary of important terms and definitions

View Glossary

Related Student Tools

Class-wise Resources

Explore more educational resources to enhance your learning experience

Class 12 Resources

Complete study resources for this class

Class 11 Resources

Complete study resources for this class

Class 10 Resources

Complete study resources for this class

Class 9 Resources

Complete study resources for this class

Class 8 Resources

Complete study resources for this class

Class 7 Resources

Complete study resources for this class

Class 6 Resources

Complete study resources for this class

Quick Access

NCERT Solutions Sample Papers Formulas Math Tables Calculators Study Blog

Add Comment

Welcome to the NCERT Solutions for Class 12 Accountancy - Chapter . This page offers a step-by-step solution to the specific question from Excercise 2 , Question 4: How deficiency of crditors is paid off at the time of dissolution of firm.....

Students Also Read

Ask a Question
Keep learning

Discover More on SaralStudy

Explore all articles