Question

Mitesh, Samir and Ajay were partners sharing profits and losses in proportion to their capitals, which on 31st March, 2023, stood at:

Mitesh – ₹ 1,50,000

Samir – ₹ 1,00,000

Ajay – ₹ 50,000

The firm’s recorded liabilities on that date amounted to ₹ 1,00,000.

In addition:

• Ajay had given a loan of ₹ 40,000 to the firm on which he was entitled to receive interest @ 6% per annum for the whole year.
• A Bills Receivable of ₹ 40,000 discounted with the bank was dishonoured on 31st March, 2023.

The partners dissolved their partnership firm on 31st March 2023, and the assets, apart from cash of ₹ 30,000, realised ₹ 6,00,000.

Expenses of dissolution amounting to ₹ 12,500 were to be borne by Samir. These were paid by the firm on his behalf.

You are required to prepare:

1. Realisation Account.
2. Ajay’s Loan Account.

Answer 1

Dr.	Realisation A/c			Cr.
Particulars	Amount (₹)	Amount (₹)	Particulars	Amount (₹)
To Sundry Assets A/c		4,10,000	By Sundry Liabilities A/c	1,00,000
To Cash A/c		1,00,000	By Cash A/c	6,00,000
To Bank A/c		40,000
To Interest on loan A/c		2,400
To Partner’s Capital A/c		1,47,600
Mitesh	73,300
Samir	49,200
Ajay	24,600
		7,00,000		7,00,000

 

Dr.	Ajay’s Loan A/c		Cr.
Particulars	Amount (₹)	Particulars	Amount (₹)
To Cash A/c	42,400	By Balance b/d	40,000
		By Interest on loan A/c	2,400
	42,400		42,400

 

Memorandum Balance sheet
Liabilities	Amount (₹)	Amount (₹)	Assets	Amount (₹)
Sundry Liabilities		1,00,000	Cash	30,000
Ajay’s Loan A/c		40,000	Sundry Assets	4,10,000
Partner’s Capital A/c		3,00,000
Mitesh	1,50,000
Samir	1,00,000
Ajay	50,000
		4,40,000		4,40,000