Question

A, B and C were partners sharing profits in the ratio of 5 : 3 : 2. On 31st March, 2026, A’s Capital and B’s Capital were ₹ 30,000 and ₹ 20,000, respectively, but C owed ₹ 5,000 to the firm. The liabilities were ₹ 20,000. The assets of the firm realised ₹ 50,000. 
Prepare Realisation Account, Partner’s Capital Accounts and Bank Account.

Answer 1

Dr.	Realisation Account					Cr.
Particulars		Amount (Rs.)	Particulars	Amount (Rs.)	Amount (Rs.)
Sundry Assets		65,000	Creditors		20,000
Cash A/c (Creditors)		20,000	Cash A/c (Assets realised)		50,000
			Loss transferred to:		15,000
			A’s Capital A/c	7,500
			B’s Capital A/c	4,500
			C’s Capital A/c	3,000
		85,000			85,000

 

Dr.	Partners’ Capital Accounts								Cr.
Particulars		A	B	C	Particulars	A	B	C
Balance b/d		–	–	5,000	Balance b/d	30,000	20,000	–
Realisation A/c (Loss)		7,500	4,500	3,000	Cash A/c	–	–	8,000
Cash A/c		22,500	15,500	–
		30,000	20,000	8,000		30,000	20,000	8,000

 

Dr.	Cash Account				Cr.
Particulars		Amount Rs	Particulars	Amount Rs
Realisation A/c (Assets)		50,000	Realisation A/c (Creditors)	20,000
C’s Capital A/c		8,000	A’s Capital A/c	22,500
			B’s Capital A/c	15,500
		58,000		58,000

Working Note:

Memorandum Balance Sheet

as on March 31, 2018

Liabilities		Amount Rs	Assets	Amount Rs
Capital A/c			C’s Capital A/c	5,000
A	30,000		Sundry Assets	65,000
B	20,000	50,000	(Balancing Figure)
Other liabilities		20,000
		70,000		70,000