Question

Vinod, Vijay and Venkat are partners sharing profits and losses in the ratio of 3 : 2 : 1. They decided to dissolve their firm on 31st March, 2019, the date on which their Balance Sheet stood as:
 

Liabilities		Amount (₹)	Assets		Amount (₹)
Creditors		17,000	Bank		3,500
Bills Payable		12,000	Stock		19,800
Vinod's Loan		5,300	Debtors	15,000
General Reserve		6,000	Less: Provision for Doubtful Debts	1,000	14,000
Capital A/cs:			Investments		4,000
Vinod	25,000		Furniture		10,000
Vijay	11,000		Machinery		33,000
Venkat	8,000	44,000
		84,300			84,300

 
The following additional information is given:
(a) The Investments are taken by Vinod for ₹ 5,000 in settlement of his loan
(b)

Assets realised as follows:	₹
Stock	17,500
Debtors	14,500
Furniture	6,800
Machinery	30,300

(c) Expenses on realisation amounted to ₹ 2,000.
Close the books of the firm giving relevant Ledger Accounts.

Answer 1

Realisation Account

Dr.		Cr.
Particulars	Amount (₹)	Particulars		Amount (₹)
Stock	19,800	Provision for Doubtful Debts		1,000
Debtors	15,000	Creditors		17,000
Investments	4,000	Bills Payable		12,000
Furniture	10,000	Vinod's Loan (Investments taken over)		5,300
Machinery	33,000	Bank A/c:
Bank (Expenses)	2,000	Stock	17,500
Bank (Creditors)	17,000	Debtors	14,500
Bank (Bills Payable)	12,000	Furniture	6,800
		Machinery	30,300	69,100
		Loss on Realisation transferred to:
		Vinod	4,200
		Vijay	2,800
		Venkat	1,400	8,400
	1,12,800			1,12,800

 

Partners’ Capital Account

Dr.				Cr.
Particulars	Vinod	Vijay	Venkat	Particulars	Vinod	Vijay	Venkat
				Balance b/d	25,000	11,000	8,000
Realisation A/c (Loss)	4,200	2,800	1,400	General Reserve	3,000	2,000	1,000
Bank A/c	23,800	10,200	7,600
	28,000	13,000	9,000		28,000	13,000	9,000

 

Vinod’s Loan A/c

Dr.		Cr.
Particulars	Amount (₹)	Particulars	Amount (₹)
Realisation A/c	5,300	Balance b/d	5,300
	5,300		5,300

 

Bank A/c

Dr.		Cr.
Particulars	Amount (₹)	Particulars	Amount (₹)
Balance b/d	3,500	Realisation A/c (Expenses)	2,000
Realisation A/c (Assets realised)	69,100	Realisation A/c (Creditors) Realisation A/c (Bills Payable)	17,000 12,000
		Vinod's Capital A/c	23,800
		Vijay’s Capital A/c	10,200
		Venkat’s Capital A/c	7,600
	72,600		72,600