Question

Ashwin, Bhavin and Pravin carried on business. They share profits an losses in the ratio of 5 : 3 : 2 respectively. Their Balance Sheet as on 31st March, 2016 was as under :

Balance Sheet as on 31st March, 2016 

Liabilities	Amount	Assets	Amount
Sundry creditors	42,000	Plant and machinery	40,000
Bhavin's loan	10,000	Investment	16,000
Reserve fund	40,000	Stock	60,000
Capital accounts :		Debtors                          36,000
Ashwin	40,000	Less : R.D.D                    2,000
Bhavin	20,000	Bank	10,000
Pravin	8,000
	1,96,000		1,60,000

On the above date, the firm was dissolved, and the assets realised were as under :

1. Investment Rs 10,000. Stock Rs 48,000, and Debtors Rs  30,000

2. Plant and machinery were taken over by Ashwin at book value.

3. Sundry creditors and Bhavin's loan were paid in full.

4. Realisation expenses incurred Rs 2,000.

Prepare :
(1) Realisation Account
(2) Partners' Capital Account
(3) Bank Account

Answer 1

In the books of the firm
Realisation A/c

Particulars	Rs.	Rs.	Particulars	Rs.	Rs.
To Sundry Assets:			Sundry Creditors		42,000
Plant and Machinery	40,000
Investments	16,000		By R.D.D. A/c		2,000
Stock	60,000		By Bank A/c
Debtors	36,000	152,000	Investment	10,000
To Bank A/c			Stock	48,000
Realisation Expenses		2,000	Debtors	30,000	88,000
Creditors		42,000
			By Ashwin Capital A/c [Machinery Took Over]		40,000
			By Realization Loss:
			Ashwin Capital A/c	12,000
			Bhavin Capital A/c	7,200
			Pravin Capital A/c	4,800	24,000
		196000			196000

Partner's Capital A/c

Particulars	Ashwin	Bhavin	Pravin	Particulars	Ashwin	Bhavin	Pravin
To Realisation A/c	40000			By Balance b/d	40000	20000	8000
To Realisation A/c [Loss]	12000	7200	4800	By Reserve Fund A/c	20000	12000	8000
To Bank A/c	8000	24800	11200
	60000	32000	16000		60000	32000	16000

Bank A/c

Particulars	Rs.	Particulars	Rs.
To Balance b/d	10000	By Realization A/c	44000
To Realisation A/c	88000	By Bhavin’s Loan A/c	10000
		By Ashwin Capital A/c	8000
		By Bhavin Capital A/c	24800
		By Pravin Capital A/c	11200
	98000		98000