Question

Saiesh, Sumit, and Hemant were in partnership sharing Profits and Losses in the ratio 2:2:1. They decided to dissolve their partnership firm on 31st March 2019 and their Balance Sheet on that date stood as:

Balance Sheets as on 31st March 2019
Liabilities	Amount (₹)	Amount (₹)	Assets	Amount (₹)
Capital:		1,80,000	Plant	1,20,000
Saiesh	90,000		Debtors	45,000
Sumit	60,000		Stock	75,000
Hemant	30,000
Loan		12,000
Sundry Creditors		9,000
Bank Overdraft		39,000
		2,40,000		2,40,000

It was agreed that:

1. Saiesh to discharge Loan and to take Debtors at book value.
2. Plant realised ₹ 1,35,000.
3. Stock realised ₹ 72,000.
4. Creditors were paid off at a discount of ₹ 45.

Show Realisation A/c, Partners’ Capital A/c and Bank A/c.

Answer 1

Dr.		Realisation Account				Cr.
Particulars		Amount (₹)	Amount (₹)	Particulars	Amount (₹)	Amount (₹)
To Sundry Assets A/c			2,40,000	By Sundry Liabilities A/c		21,000
Plant		1,20,000		Loan	12,000
Debtors		45,000		Sundry Creditors	9,000
Stock		75,000		By Bank A/c		2,07,000
To Bank A/c			8,955	Plant	1,35,000
Sundry Creditors				Stock	72,000
To Saiesh’s Capital A/c – Loan			12,000	By Saiesh’s Capital A/c
To Partners’ Capital A/c (Profit on realisation transferred)			12,045	Debtors		45,000
Saiesh		4,818
Sumit		4,818
Hemant		2,409
			2,73,000			2,73,000

 

Dr.	Partners’ Capital Accounts								Cr.
Particulars		Saiesh (₹)	Sumit (₹)	Hemant (₹)	Particulars	Saiesh (₹)	Sumit (₹)	Hemant (₹)
To Debtors A/c		45,000	-	-	By Balance b/d	90,000	60,000	30,000
To Bank A/c		61,818	64,818	32,409	By Loan A/c	12,000	-	-
					By realisation A/c – Profit	4,818	4,818	2,409
		1,06,818	64,818	32,409		1,06,818	64,818	32,409

 

Dr.	Bank Account				Cr.
Particulars		Amount (₹)	Particulars	Amount (₹)
To realisation A/c (Assets)		2,07,000	By Balance b/d (overdraft)	39,000
			By realisation A/c	8,955
			By Saiesh’s Capital A/c	61,818
			By Sumit’s Capital A/c	64,818
			By Hemant’s Capital A/c	32,409
		2,07,000		2,07,000