Question

Following is the Balance Sheet of Ramji Lal and Panna Lal as at 31st March, 2024:

Liabilities	Amount (₹)	Assets	Amount (₹)	Amount (₹)
Capitals:		Goodwill		4,000
Ramji Lal	16,000	Machinery		6,000
Panna Lal	10,000	Plant		12,800
Reserves	3,600	Debtors	10,800	10,000
Workmen Compensation Reserve	2,000	Less: Provision	800
Creditors	5,400	Bank		6,800
Bills Payable	2,600
	39,600			39,600

They decided to dissolve the firm. Assets are realised as follows:

1. Machinery 10% less than book value; Plant ₹ 12,500 and Goodwill ₹ 2,520.
2. Ramji Lal is to take over Debtors amounting to ₹ 6,800 at ₹ 6,000, remaining Debtors were realised for 90% of the book value.
3. One bill of ₹ 600 under discount having been dishonoured had to be taken up by them.
4. The Bill payable of ₹ 2,600 to be assumed by Panna Lal at that figure.
5. Creditors are paid off at a discount of 10%.
6. An amount of ₹ 2,500 had to be paid for Workmen Compensation.
7. The liquidation expenses amounted to ₹ 400.

You are required to show the Realisation Account, Capital Accounts and Bank Account.

Hint: Entire amount of Workmen Compensation Reserve of ₹ 2,000 will be Credited to Realisation Account.

Answer 1

Dr.	Realisation A/c			Cr.
Particulars	Amount (₹)	Particulars	Amount (₹)	Amount (₹)
To Sundry Assets:		By Creditors		5,400
Goodwill	4,000	By Bills payable		2,600
Machinery	6,000	By Provision for Doubtful Debts		800
Plant	12,800	By Workmen Compensation Reserve		2,000
Debtors	10,800	By Bank A/c		24,020
To Bank A/c (Creditors)	4,860	Machinery	5,400
To Bank A/c (Workmen Compensation claim)	2,500	Plant	12,500
To Bank A/c (Realisation Expense)	400	Goodwill	2,520
To Bank A/c (Bill discounted dishonoured)	600	Debtors	3,600
To Panna Lal Capital A/c (Bills Payable taken over)	2,600	By Ramji lal’s Capital A/c (Debtors taken over)		6,000
		By Loss on Realisation t/f to Capital A/c:		3,740
		Ramji Lal	1,870
		Panna Lal	1,870
	44,560			44,560

 

Dr.	Partner’s Capital A/c				Cr.
Particulars	Ramji Lal	Panna Lal	Particulars	Ramji Lal	Panna Lal
To Realisation A/c (Loss)	1,870	1,870	By Balance b/d	16,000	10,000
To Realisation A/c (Debtors taken over)	6,000	-	By Reserves	1,800	1,800
To Bank A/c	9,930	12,530	By Realisation A/c (Bills Payable taken over)	-	2,600
	17,800	14,400		17,800	14,400

 

Dr.	Bank A/c		Cr.
Particulars	Amount (₹)	Particulars	Amount (₹)
To Balance b/d	6,800	By Realisation A/c (Creditors)	4,860
To Realisation A/c (Sundry Assets realised)	24,020	By Realisation A/c (Workmen Compensation claim)	2,500
		By Bank A/c (Realisation Expense)	400
		By Realisation A/c (Bill discounted dishonoured)	600
		By Ramji Lal Capital A/c	9,930
		By Panna Lal Capital A/c	12,530
	30,820		30,820