Question

Rajeev, Sanjeev and Mahesh were partners in the firm Janki Traders sharing profit and losses in the ratio of 2 : 2 : 1. The following is the Balance Sheet as on 31st March 2022:

Balance Sheet as on 31st March 2022
Liabilities	Amount (₹)	Assets	Amount (₹)	Amount (₹)
Capital Accounts:		Machinery		2,00,000
Rajeev	2,40,000	Investment		96,000
Sanjeev	80,000	Debtors	2,20,000	2,08,000
Mahesh	80,000	Less: R.D.D.	12,000
General Reserve	24,000	Stock		80,000
Creditors	1,60,000	Bank		56,000
Bills Payable	56,000
	6,40,000			6,40,000

On the above date, the partners decided to dissolve the firm.

1. Assets were realised as under:
   Machinery ₹ 1,80,000, Stock ₹ 72,000, Investment ₹ 84,000, and Debtors ₹ 1,80,000.
2. Dissolution expenses were ₹ 12,000.
3. Goodwill of the firm realised ₹ 96,000.

Prepare necessary ledger accounts to close the books of the Partnership Firm.

Answer 1

Dr.	Realisation Account			Cr.
Particulars	Amount (₹)	Amount (₹)	Particulars	Amount (₹)
To Machinery		2,00,000	By Creditors	1,60,000
To Investment		96,000	By Bills Payable	56,000
To Debtors		2,08,000	By Bank (Machinery)	1,80,000
To Stock		80,000	By Bank (Stock)	72,000
To Dissolution Expenses		12,000	By Bank (Investment)	84,000
To Bank (Creditors paid)		1,60,000	By Bank (Debtors)	1,80,000
To Bank (Bills Payable paid)		56,000	By Bank (Goodwill)	96,000
To Profit on Realisation:		16,000
Rajeev (2/5)	6,400
Sanjeev (2/5)	6,400
Mahesh (1/5)	3,200
		8,28,000		8,28,000

 

Dr.	Partners’ Capital Accounts								Cr.
Date	Particulars	Rajeev (₹)	Sanjeev (₹)	Mahesh (₹)	Date	Particulars	Rajeev (₹)	Sanjeev (₹)	Mahesh (₹)
1.	To Bank	2,56,000	96,000	88,000	1.	By Balance b/d	2,40,000	80,000	80,000
					2.	By Gen. Reserve (2 : 2 : 1)	9,600	9,600	4,800
					3.	By Realisation (Profit)	6,400	6,400	3,200
		2,56,000	96,000	88,000			2,56,000	96,000	88,000

 

Dr.	Bank Account		Cr.
Particulars	Amount (₹)	Particulars	Amount (₹)
To Balance b/d	56,000	By Creditors	1,60,000
To Realisation (Machinery)	1,80,000	By Bills Payable	56,000
To Realisation (Investment)	84,000	By Dissolution Expenses	12,000
To Realisation (Debtors)	1,80,000	By Rajeev Capital	2,56,000
To Realisation (Stock)	72,000	By Sanjeev Capital	96,000
To Realisation (Goodwill)	96,000	By Mahesh Capital	88,000
	6,68,000		6,68,000