Question

The following was the Balance Sheet of X, Y and Z as at 28.2.2023:

Liabilities	Amount (₹)	Amount (₹)	Assets	Amount (₹)
Creditors		30,000	Bank	32,000
Bills Payable		10,000	Debtors	48,000
G’s Loan		18,000	Stock	19,000
Y’s Loan		20,000	Furniture	43,000
Workmen Compensation Reserve		33,000	Land and Building	1,09,000
Capitals:		1,60,000	Z’s Capital	20,000
X	75,000
Y	85,000
		2,71,000		2,71,000

The firm was dissolved on the above date on the following terms:

1. Debtors realized ₹ 29,000 and creditors and bills payable were paid at a discount of 10%.
2. Stock was taken over by X for ₹ 17,000 and furniture was sold to K for ₹ 20,000.
3. Land and Building was sold for ₹ 2,98,000.
4. G’s loan was paid by a cheque of the same amount.
5. Compensation to workmen paid by the firm amounted to ₹ 15,000.

Prepare Realisation Account, Capital Accounts and Bank Account.

Hint: Workmen Compensation Reserve credited to Realisation A/c ₹ 15,000 and to Capital Accounts ₹ 18,000.

Answer 1

Dr.	Realisation A/c				Cr.
Particulars	Amount (₹)	Amount (₹)	Particulars	Amount (₹)	Amount (₹)
To Sundry Assets:			By Creditors A/c		30,000
Debtors		48,000	By Bills Payable A/c		10,000
Stock		19,000	By G’s Loan A/c		18,000
Furniture		43,000	By Workmen Compensation Reserve A/c		15,000
Land and Building		1,09,000	By Bank A/c (Assets Realised)		3,47,000
To Bank A/c (Liabilities paid off)		54,000	Debtors	29,000
Creditors	27,000		Furniture	20,000
Bills Payable	9,000		Land and Building	2,98,000
G’s Loan A/c	18,000		By X’s Capital A/c (Stock taken over)		17,000
To Bank A/c (Workmen Compensation claim)		15,000
To Gain on Realisation t/f to Capital A/c:		1,49,000
X	49,667
Y	49,667
Z	49,666
		4,37,000			4,37,000

 

Dr.	Partner’s Capital A/c						Cr.
Particulars	X	Y	Z	Particulars	X	Y	Z
To Balance b/d	-	-	20,000	By Balance b/d	75,000	85,000	-
To Realisation A/c (Stock taken over)	17,000	-	-	By Realisation A/c - Profit	49,667	49,667	49,666
To Bank A/c (Final Payment)	1,13,667	1,40,667	35,666	By Workmen Compensation Reserve A/c	6,000	6,000	6,000
	1,30,667	1,40,667	55,666		1,30,667	1,40,667	55,666

 

Dr.	Y’s loan A/c		Cr.
Particulars	Amount (₹)	Particulars	Amount (₹)
To Bank A/c	20,000	By Balance b/d	20,000
	20,000		20,000

 

Dr.	Bank A/c		Cr.
Particulars	Amount (₹)	Particulars	Amount (₹)
To Balance b/d	32,000	By Bank A/c (Liabilities paid off)	54,000
To Realisation A/c (Sundry Assets realised)	3,47,000	By Realisation A/c (Workmen Compensation claim)	15,000
		By Bank A/c (Y’s Loan)	20,000
		By X’s Capital A/c	1,13,667
		By Y’s Capital A/c	1,40,667
		By Z’s Capital A/c	35,666
	3,79,000		3,79,000