Question

There are two partners, Angad and Raman in a firm and their capitals are ₹ 50,000 and ₹ 40,000. The creditors are ₹ 30,000. The assets of the firm realise ₹ 1,00,000.

How much will Angad and Raman receive?

Answer 1

Memorandum Balance Sheet
Liabilities	Amount (₹)	Assets	Amount (₹)
Capital Accounts:		Sundry Assets (Balancing figure)	1,20,000
Angad	50,000
Raman	40,000
Creditors	30,000
	1,20,000		1,20,000

 

Dr.	Realisation Account			Cr.
Particulars	Amount (₹)	Particulars	Amount (₹)	Amount (₹)
To Sundry Assets A/c (Transfer)	1,20,000	By Creditors A/c (Transfer)		30,000
To Bank A/c (Creditors paid in full)	30,000	By Bank A/c (Assets Realised)		1,00,000
		By Loss on Realisation transferred to:		20,000
		Angad’s Capital A/c	10,000
		Raman’s Capital A/c	10,000
	1,50,000			1,50,000

 

Dr.	Partners’ Capital Accounts						Cr.
Particulars		Angad	Raman	Particulars	Angad	Raman
Realisation A/c (Loss)		10,000	10,000	Balance b/d	50,000	40,000
Cash A/c		40,000	30,000
		50,000	40,000		50,000	40,000

 

Dr.	Cash Account				Cr.
Particulars		Amount (Rs.)	Particulars	Amount (Rs.)
Realisation A/c		1,00,000	Realisation A/c	30,000
			Angad’s Capital A/c	40,000
			Raman’s Capital A/c	30,000
		1,00,000		1,00,000