Question

Rahul, Rohit and Ramesh were partners in a firm sharing profits and losses in the ratio of 2:2:1 respectively. The Balance Sheet as on 31.03.2013 was as follows :
                               Balance Sheet as on 31st Mar, 2013

Liabilities	Amount (Rs.)	Assets	Amount (Rs.)	Amount (Rs.)
Sundry Creditors	20,000	Cash at Bank		8000
Bills Payable	5,000	Debtors	16000
General Reserve	6,000	Less : R.D.D.	(1000)	15,000
Rahul’s Loan A/c	16,000	Stock		20,000
Capital Account		Plant and Machinery		30,000
Rahul	25,000	Furniture		6,000
Rohit	10,000	Ramesh’s Capital Account		3,000
	82000			82000

The firm was dissolved on the above date :

(1) Assets realised as follows:

Debtors Rs.  9,000, Plant and Machinery Rs. 26,000, Stock Rs.  14,000, and Furniture Rs.  3,000.

(2) The creditors were paid Rs. 18,000, in full settlement and the bills payable were paid in full.

(3) The realisation expenses amounted to Rs. 3,000.

(4) Ramesh became insolvent and was able to bring in only Rs. 1,800 from his private estate.

Prepare :

(1) Realisation account

(2) Partner’s capital account and

(3) Bank account.

Answer 1

In the books of Rahul, Rohit and Ramesh
                                              Realisation A/c

Particulars	Amount (Rs.)	Amount (Rs.)	Particulars	Amount (Rs.)	Amount (Rs.)
To Sundry Assets :			By R.D.D. A/c		1000
Debtors	16,000		By Sundry Liabilities
Stock	20,000		Sundry Creditors	20,000
Plant and Machinery	30,000		Bills Payable	5,000	25,000
Furniture	6,000	72,000
			By Bank A/c
To Bank A/c			Debtors	9,000
Creditors	18,000		Plant and Machinery	26,000
Bills Payable	5,000		Stock	14,000
Realisation Expenses	3,000	26,000	Furniture	3,000	52,000
			By Loss on realisation
			Rahul	8,000
			Rohit	8,000
			Ramesh	4,000	20,000
		98,000			98,000

                                           Partners Capital A/c

Particulars	Rahul	Rohit	Ramesh	Particulars	Rahul	Rohit	Ramesh
To balance b/d			3000	By Balance b/d	25000	10000	-
To Loss on Realisation A/c	8000	8000	4000	By General Reserve	2400	2400	1200
To Ramesh A/c	2000	2000		By Bank A/c			1800
				By Rahul's Capital A/c			2000
				By Rohit's Capital A/c			2000
To Balance C/d	17400	2400
	27400	12400	7000		27400	12400	7000

                                                                   Bank A/c

Particulars	Amount Rs.	Amount Rs.	Particulars	Amount Rs.	Amount Rs.
To Balance b/d		8000	By Realisation A/c		26000
To Realisation A/c		52000	By Rahul’s loan A/c		16000
To Ramesh's Capital A/c		1800	By Rahul’s Capital A/c		17400
			By Rohit’s Capital A/c		2400
		61800			61800

                                             Rahul's Loan A/c

Particulars	Amount Rs.	Amount Rs.	Particulars	Amount Rs.	Amount Rs.
To Bank A/c		16000	By Balance b/d		16000
		16000			16000