Question

Raina and Meena were partners in a firm which they dissolved on 31st March, 2026. On this date, Balance Sheet of the firm, apart from realisable assets and outside liabilities were as follows:

	₹
Raina’s Capital	40,000 (Cr.)
Meena’s Capital	20,000 (Dr.)
Profit & Loss Account	10,000 (Dr.)
Raina’s Loan to the Firm	15,000
General Reserve	7,000

On the date of dissolution of the firm:

1. Raina’s loan was repaid by the firm along with interest of ₹ 500.
2. Dissolution expenses of ₹ 1,000 were paid by the firm on behalf of Raina.
3. An unrecorded asset of ₹ 2,000 was taken by Meena while Raina paid an unrecorded liability of ₹ 3,000.
4. Dissolution resulted in a loss of ₹ 60,000 from the realisation of assets and settlement of liabilities.

You are required to prepare Partners’ Capital Accounts.

Answer 1

Dr.	Partners’ Capital Accounts				Cr.
Particulars	Raina (₹)	Meena (₹)	Particulars	Raina (₹)	Meena (₹)
To Balance b/d		20,000	By Balance b/d	40,000
To Profit & Loss A/c (Accumulated Loss)	5,000	5,000	By General Reserve A/c	3,500	3,500
To Realisation A/c (Asset taken over)		2,000	By Realisation A/c (Liability paid)	3,000
To Bank A/c (Dissolution Exp on her behalf)	1,000		By Bank A/c (Cash brought in)		53,500
To Realisation A/c (Loss on Realisation)	30,000	30,000
To Bank A/c (Final Payment)	10,500
	46,500	57,000		46,500	57,000