Question

Sanjay, Tarun and Vineet shared profit in the ratio of 3:2:1. On December 31,2017 their balance sheet was as follows:
Balance Sheet of Sanjay, Tarun and Vineet as on December 31, 2017

Liabilities	Amt (Rs.)	Amt (Rs.)	Assets	Amt (Rs.)
Capitals:		270,000	Plant	90,000
Sanjay	100,000		Debtors	60,000
Tarun	100,000		Furniture	32,000
Vineet	70,000		Stock	60,000
Creditors		80,000	Investments	70,000
Bills payable		30,000	Bills receivable	36,000
			Cash in hand	32,000
		380,000		380,000

On this date the firm was dissolved. Sanjay was appointed to realise the assets. Sanjay was to receive 6% commission on the sale of assets (except cash) and was to bear all expenses of Realisation.
Sanjay realised the assets as follows: Plant Rs 72,000, Debtors Rs 54,000, Furniture Rs 18,000, Stock 90% of the book value, Investments Rs 76,000 and Bills receivable Rs 31,000. Expenses of Realisation amounted to Rs 4,500.
Prepare Realisation Account, Capital Accounts and Cash Account

Answer 1

Books of Sanjay, Tarun and Vineet
Realisation Account
Dr.                                                                                               Cr.

Particulars	Amt (Rs.)	Amt (Rs.)	Particulars	Amt (Rs.)	Amt (Rs.)
Plant		90,000	Creditors		80,000
Debtors		60,000	Bills Payable		30,00
Furniture		32,000	Cash:		305,000
Stock		60,000	Plant	72,000
Investment		70,000	Debtors	54,000
Bills Receivable		36,000	Furniture	18,000
Cash :		110,000	Stock	54,000
Creditors	80,000		Investments	76,000
Bills Payable	30,000		Bills Receivable	31,000
Sanjay’s Capital A/c (6% commission)		18,300	Loss transferred to :		61,300
			Sanjay’s Capital	30,650
			Tarun’s Capital A/c	20,433
			Vineet’s Capital A/c	10,217
		476,300			476,300

Partners’ Capital Account

Dr.                                                                                                 Cr.

Particulars	Sanjay	Tarun	Vineet	Particulars	Sanjay	Tarun	Vineet
Realisation  (Loss)	30,650	20,433	10,217	Balance b/d	100,000	100,000	70,000
Cash	87,650	79,567	59,783	Realisation  (commission)	18,300	-	-
	118,300	100,000	70,000		118,300	100,000	70,000

                                                 Cash Account
Dr.                                                                                                 Cr.

Particulars	Amt (Rs.)	Particulars	Amt (Rs.)
Balance b/d	32,000	Realisation	110,000
Realisation	305,000	Sanjay’s Capital A/c	87,650
		Tarun’s Capital A/c	79,567
		Vineet’s Capital A/c	59,783
	337,000		337,000