Question

Mahesh, Suresh and Jayesh were partners of the firm. They decided to dissolve the firm on 31^st March, 2012. Their Balance Sheet as on that date was as under:

        Balance Sheet as on 31^st March, 2012

Liabilities	Amount (Rs)	Assets		Amount (Rs)
Creditors	18000	Cash at Bank		9600
Loan	4500	Sundry Assets		51000
Capitals		Debtors	72600	69000
Mahesh	82500	Less : R.D.D.	3600
Suresh	30000	Stock		23400
Jayesh	21000	Furniture		3000
	156000			156000

The firm was dissolved as follows:

1) Mahesh will accept furniture for Rs 2,000 and agreed accept the debtors of book value of Rs 60,000 at on agreed value of Rs 51,000.

2) Suresh will accept stock at an agreed value Rs 20,000, and Sundry Assets of Book value Rs 24,000 at Rs 23,500.

3) Jayesh will accept remaining Sundry Assets for Rs 25,000 He will further accept the liability of loan along with due interest at 12% p.a.

    Interest for three months on this loan was outstanding and was not recorded in the books.

4) Expenses of dissolution were Rs 1,000 and outstanding expenses of Rs 1,200 were to be paid from the firm.

5) The remaining debtors were realised Rs 7,000. 
Prepare:
1) Realisation A/c
2) Partner’s Capital A/c
3) Bank A/c

Answer 1

                            Realisation Account
Dr.                                                                                Cr.

Particulars		Amount (Rs)	Particulars		Amount (Rs)
Sundry Assets:			Sundry Liabilities:
Assets	51000	150000	Creditors	18,000	26100
Debtors	72600		Loan	4,500
Stock	23400		Reserve for Doubtful debts	3,600
Furniture	3000		Mahesh’s Capital A/c:
Bank A/c:			Furniture	2,000	53000
Creditors	18,000	20200	Debtors	51,000
Dissolution Expenses	1,000		Suresh’s Capital A/c:
Outstanding Expenses	1,200		Stock	20,000	43500
Jayesh’s Capital A/c (Loan with its 3 months outstanding Interest)		4635	Sundry Assets	23,500
			Jayesh’s Capital A/c (Sundry Assets)		25000
			Bank A/c (Debtors)		7000
			Loss transferred to:
			Mahesh’s Capital A/c	6745	20235
			Suresh’s Capital A/c	6745
			Jayesh’s Capital A/c	6745
		174835			174835

                           Partners’ Capital Accounts
Dr.                                                                               Cr.

Particulars	Mahesh	Suresh	Jayesh	Particulars	Mahesh	Suresh	Jayesh
Realisation A/c	53000	43500	25000	Balance b/d	82500	30000	21000
Realisation A/c (Loss)	6745	6745	6745	Realisation A/c (Loan paid)			4635
Bank A/c	22755			Bank A/c		20245	6110
	82500	50240	31745		82500	50245	31745

                                    Bank Account
Dr.                                                                                 Cr.

Particulars		Amount (Rs)	Particulars	Amount (Rs)
Balance b/d		9,600	Realisation A/c (Liabilities)	20200
Realisation A/c (Assets)		7000	Mahesh’s Capital A/c	22755
Capital A/cs:
Suresh	20245	26355
Jayesh	6110
		42955		42955