Question

Mihir and Farhan were partners in a firm sharing profits and losses equally. They dissolved their partnership firm on 31^st March 2024.
On this date, the Balance Sheet of their firm, apart from the realisable assets and outside liabilities, showed the following:

Particulars	(₹)
Mihir’s Capital	60,000 (Cr.)
Farhan’s Capital	20,000 (Dr.)
Workmen Compensation Reserve	12,000
Profit & Loss Account	6,000 (Cr.)
Bank Account	‘?’

On the date of dissolution:

1. The firm, upon realisation of assets and settlement of liabilities, suffered a loss of ₹ 10,000.
2. The amount paid to settle the liabilities exceeded the amount realised from the sale of the assets by ₹ 8,000.
3. Stock worth ₹ 3,000 was taken over by Farhan.
4. Mihir discharged the Bills Payable, recorded in the books at ₹ 5,000, at a rebate of ₹ 100.
5. There was a workmen compensation claim of ₹ 4,000.

You are required to prepare on the date of dissolution of the firm:

1. The Partners’ Capital Accounts.
2. The Bank Account to determine its balance at bank as shown in the Balance Sheet as at 31^st March 2024, represented by ‘?’.

Answer 1

Dr.	Partner’s Capital A/c				Cr.
Particulars	Mihir	Farhan	Particulars	Mihir	Farhan
To Balance b/d	-	20,000	By Balance b/d	60,000	-
To Realisation A/c	-	3,000	By Workmen Compensation Reserve A/c	4,000	4,000
To Realisation A/c	5,000	5,000	By Realisation A/c	4,900	-
To Bank A/c	66,900	-	By P&L A/c	3,000	3,000
			By Bank A/c	-	21,000
	71,900	28,000		71,900	28,000

 

Dr.	Bank A/c		Cr.
Particulars	Amount (₹)	Particulars	Amount (₹)
To Balance b/d (Bal. Fig.)	53,900	By Realisation A/c	8,000
To Farhan’s capital A/c	21,000	To Mihir’s capital A/c	66,900
	74,900		74,900