Question

X and Y were partners sharing profits and losses in the ratio of 3 : 2. They decided to dissolve the firm on 31st March, 2019. On that date, their Capitals were X − ₹ 40,000 and Y − ₹ 30,000. Creditors amounted to ₹ 24,000.
Assets were realised for ₹ 88,500. Creditors of ₹ 16,000 were taken over by X at ₹ 14,000. Remaining Creditors were paid at ₹ 7,500. The cost of realisation came to ₹ 500.
Prepare necessary accounts.

Answer 1

Realisation Account

Dr.						Cr.
Sundry Assets			94,000	Creditors			24,000
X’s Capital A/c (Creditors)			14,000	Cash (Assets Realised)			88,500
Cash A/c:				Loss transferred to:
Creditors		7,500		X’s Capital A/c	2,100
Expenses		500	8,000	Y’s Capital A/c	1,400		3,500
			1,16,000				1,16,000

 

Partners’ Capital Accounts

Dr.							Cr.
Particulars		X	Y	Particulars	X	Y
Realisation A/c (Loss)		2,100	1,400	Balance b/d	40,000	30,000
Cash A/c		51,900	28,600	Realisation A/c (Creditors)	14,000	–
		54,000	30,000		54,000	30,000

 

Cash Account

Dr.					Cr.
Particulars		Amount (₹)	Particulars	Amount (₹)
Realisation A/c (Assets)		88,500	Realisation A/c	8,000
			X’s Capital A/c	51,900
			Y’s Capital A/c	28,600
		88,500		88,500

Working Notes
 

Memorandum Balance Sheet

as on March 31, 2019

Liabilities		Amount (₹)	Assets	Amount (₹)
Capital A/cs:			Sundry Assets	94,000
X	40,000		(Balancing figure)
Y	30,000	70,000
Creditors		24,000
		94,000		94,000