Question

Akshad, Aditya and Abha are partners. They share profits and losses equally. Their balance sheet as on 31 March, 2022 was as follows:

Balance Sheet as on 31st March, 2022
Liabilities	Amount (₹)	Amount (₹)	Assets	Amount (₹)	Amount (₹)
Creditors		50,500	Machinery		53,000
Reserve fund		22,500	Stock		32,000
Bills payable		15,000	Bills Receivable		47,000
Capital Accounts:			Cash at Bank		21,000
Akshad		65,000	Debtors	28,000	25,000
Aditya		40,000	Less: R.D.D.	3,000
			Abha’s Capital		15,000
		1,93,000			1,93,000

On 31st March, 2022 it was decided to dissolve the firm:

1. The assets realised were as follows:
   Stock ₹ 31,000
   Machinery ₹ 39,500
   Bills receivable ₹ 41,000
   Debtors ₹ 27,000
2. Creditors were paid at a discount of ₹ 500 and Bills payable were paid in full.
3. Realisation expenses amounted to ₹ 6,600.
4. Abha was declared insolvent, and only ₹ 3,500 could be recovered from her private property.

Prepare:

1. Realisation Account
2. Partners’ Capital Account
3. Bank Account

Answer 1

Dr.	In the books of Akshad and Aditya Realisation Account				Cr.
Particulars	Amount (₹)	Amount (₹)	Particulars	Amount (₹)	Amount (₹)
To Sundry Assets A/c		1,60,000	By Sundry Liabilities A/c		65,500
Machinery	53,000		Creditors	50,500
Stock	32,000		Bills payable	15,000
Bill Receivable	47,000		By R.D.D. A/c		3,000
Debtors	28,000		By Bank A/c		1,38,500
To Bank A/c		65,000	Stock	31,000
Creditors	50,000		Machinery	39,500
Bills Payable	15,000		Bills Receivable	41,000
To Bank A/c (Realisation expenses paid)		6,600	Debtors	27,000
			By Partner’s Capital A/cs (Loss on Realisation transferred)		24,600
			Akshad	8,200
			Aditya	8,200
			Abha	8,200
		2,31,600			2,31,600

 

Dr.	Partners’ Capital Accounts						Cr.
Particulars	Akshad (₹)	Aditya (₹)	Abha (₹)	Particulars	Akshad (₹)	Aditya (₹)	Abha (₹)
To Balance b/d	−	−	15,000	By Balance b/d	65,000	40,000	−
To Realisation A/c loss	8,200	8,200	8,200	By Reserve Fund A/c	7500	7500	7500
To Abha’s capital A/c	6,100	6,100	−	By Bank A/c	−	−	3500
To Bank A/c	58,200	33,200	−	By Akshad’s capital A/c	−	−	6100
				By Aditya’s Capital A/c	−	−	6100
	72,500	47,500	23,200		72,500	47,500	23,200

 

Dr.	Bank Accounts		Cr.
Particulars	Amount (₹)	Particulars	Amount (₹)
To Balance b/d (Assets)	21,000	By Realisation A/c (Liabilities)	65,000
To Realisation A/c	1,38,500	By Realisation A/c (exp. paid)	6,600
To Abha’s Capital A/c	3,500	By Akshad’s capital A/c	58,200
		By Aditya’s Capital A/c	33,200
	1,63,000		1,63,000