Question

Following is the Balance sheet of Ram, Shyam and Murari as on 31st March, 2023.

Liabilities	Amount (₹)	Assets	Amount (₹)
Capital		Furniture	10,800
Ram	18,000	Debtors	72,000
Shyam	10,800	Stocks	86,400
Creditors	1,44,000	Cash	3,600
Ram's Loan	36,000	3,600	36,000
	2,08,800		2,08,800

Due to the inability to pay the creditors, the firm is dissolved, Shyam and Murari cannot pay anything. Ram can contribute only ₹ 5,400 from his private estate. Stock realised ₹ 54,000. Debtors realised ₹ 57,600 and Furniture is sold for ₹ 3,600. Realisation Expenses amounted to ₹ 10,800.
Prepare necessary Ledger account to close the books of the firm.

Answer 1

Dr.	In the books of Ram, Shyam and Murari Realisation Account				Cr.
Particulars	Amount (₹)	Amount (₹)	Particulars	Amount (₹)	Amount (₹)
To Sundry Assets A/c			By Cash A/c
Furniture	10,800	1,69,200	Stock	54,000	1,15,200
Debtors	72,000		Debtors	57,600
Stock	86,400		Furniture	3,600
To Cash A/c (Realisation Expenses paid		10,800	By Partner's Capital A/c (Loss on Realisation transferred)
			Ram	21,600	64,800
			Shyam	21,600
			Murari	21,600
		1,80,000			1,80,000

 

Dr.	Partner's Capital Accounts						Cr.
Particulars	Ram (₹)	Shyam (₹)	Murari (₹)	Particulars	Ram (₹)	Shyam (₹)	Murari (₹)
To Balance b/d	-	-	36,000	By Balance b/d	18,000	10,800	-
To Realisation A/c (Loss on realisation)	21,600	21,600	21,600	By Ram’s loan A/c	36,000	-	-
To Deficiency A/	37,800	-	-	By Cash A/c	5,400	-	-
				By Deficiency A/c	-	10,800	57,600
	59,400	21,600	57,600		59,400	21,600	57,600

 

Dr.	Cash A/c		Cr.
Particulars	Amount (₹)	Particulars	Amount (₹)
To Balance b/d	3,600	By Realisation A/c (Exp.)	10,800
To Ram’s Capital A/c	5,400	By Creditors A/c	1,13,400
To Realisation A/c (Assets)	1,15,200
	1,24,200		1,24,200

 

Dr.	Creditors A/c		Cr.
Particulars	Amount (₹)	Particulars	Amount (₹)
To Cash A/c	1,13,400	By Balance b/d	1,44,000
To Deficiency A/c	30,600
	1,44,000		1,44,000

 

Dr.	Deficiency A/c		Cr.
Particulars	Amount (₹)	Particulars	Amount (₹)
To Shyam’s Capital A/c	10,800	By Ram’s Capital A/c	37,800
To Murari’s Capital A/c	57,600	By Creditors A/c	30,600
	68,400		68,400