Question

Shilpa, Meena and Nanda decided to dissolve their partnership on 31st March, 2019. Their profit-sharing ratio was 3 : 2 : 1 and their Balance Sheet was as under:

BALANCE SHEET OF SHILPA, MEENA AND NANDA as at 31st March, 2019

Liabilities		₹	Assets	₹
Capital A/cs:			Land	81,000
Shilpa	80,000		Stock	56,760
Meena	40,000	1,20,000	Debtors	18,600
Bank Loan		20,000	Nanda's Capital	23,000
Creditors		37,000	Cash	10,840
Provision For Doubtful Debts		1,200
General Reserve		12,000
		1,90,200		1,90,200

It is agreed as follows:
The stock of value of ₹ 41,660 are taken over by Shilpa for ₹ 35,000 and she agreed to discharge bank loan. The remaining stock was sold at ₹ 14,000 and debtors amounting to ₹ 10,000 realised ₹ 8,000. Land is sold for ₹ 1,10,000. The remaining debtors realised 50% at their book value. Cost of realisation amounted to ₹ 1,200. There was a typewriter not recorded in the books worth of ₹ 6,000 which were taken over by one of the Creditors at this value. Prepare Realisation Account, Partners' Capital Accounts, and Cash Account to Close the books of the firm.

Answer 1

Realisation Account

Dr.								Cr.
Particulars			Amount (₹)	Particulars			Amount (₹)
Land			81,000	Bank Loan			20,000
Stock			56,760	Creditors			37000
Debtors			18,600	Provision for doubtful debts			1,200
Shilpa’s Capital A/c			20,000	Shilpa’s Capital A/c (Stock)			35,000
Cash:				Cash:
Creditors		31000		Stock		14000
Realisation Expenses		1,200	32200	Debtors		12300
Realisation Profit				Land		1,10,000	1,36,300
Shilpa’s Capital A/c		10,470
Meena’s Capital A/c		6,980
Nanda’s Capital A/c		3,490	20,940
			2,29,500				2,29,500

 

Partners’ Capital Account

Dr.							Cr.
Particulars		Shilpa	Meena	Nanda	Particulars	Shilpa	Meena	Nanda
Balance b/d		–	–	23,000	Balance b/d	80,000	40,000	–
Realisation		35,000			General Reserve	6,000	4,000	2,000
(Stock)					Realisation	20,000
Cash		81,470	50,980		(Bank Loan)
					Realisation (Profit)	10,470	6,980	3,490
					Cash			17,510
		1,16,470	50,980	23,000		1,16,470	50,980	23,000

 

Cash Account

Dr.					Cr.
Particulars		Amount (₹)	Particulars	Amount (₹)
Balance b/d		10,840	Realisation (Expenses)	32,200
Realisation (Assets)		1,36,300	Shilpa’s Capital A/c	81,470
Nanda’s Capital A/c		17,510	Meena’s Capital A/c	50,980
		1,64,650		1,64,650