Question

X, Y and Z carrying on business as merchants and sharing profits and losses in the ratio of 2 : 2 : 1, dissolved their firm as at 31st March, 2019 on which date their Balance Sheet was as follows:

Liabilities				Amount (₹)	Assets			Amount ​(₹)
Sundry Creditors				41,500	Cash at Bank			22,500
Bills Payable				20,000	Stock			80,000
Bank Loan				40,000	Debtors		50,000
General Reserve				50,000	Less: Provision for Doubtful Debts		2,500	47,500
Investments Fluctuation Reserve				40,000	Investments			55,000
Capital A/cs:					Premises			1,51,500
X		75,000
Y		75,000
Z		15,000		1,65,000
				3,56,500				3,56,500

A bill for ₹ 5,000 received from Mohan discounted from bank is not met on maturity.
The assets except Cash at Bank and Investments were sold to a company which paid ₹ 3,25,000 in cash.The Investments were sold and ₹ 56,500 were received. Mohan proved insolvent and a dividend of 50% was received from his estate. Sundry Creditors (including Bills Payable) were paid ₹ 57,500 in full settlement. Realisation Expenses amounted to ₹ 15,000.
Prepare Realisation Account, Partners' Capital Accounts and Bank Account. 

Answer 1

Realisation  Account

Dr.								Cr.
Particulars				Amount (₹)	Particulars		Amount (₹)
Stock				80,000	Creditors		41,500
Debtors				50,000	Bills Payable		20,000
Investment				55,000	Bank Loan		40,000
Premises				1,51,500	Investment Fluctuation Reserve		40,000
Bank A/c :-					Provision for Doubtful Debts		2,500
Bill			5,000		Bank A/c-
Creditors & Bills Payable			57,500		Assets	3,25,000
Expenses			15,000		Investments	56,500
Bank loan			40,000	1,17,500	Bill	2,500	3,84,000
Profit transferred to:
X’s Capital A/c		29,600
Y’s Capital A/c		29,600
Z’s Capital A/c		14,800		74,000
				5,28,000			5,28,000

 

Partners’ Capital Accounts

Dr.									Cr.
Particulars		X	Y	Z	Particulars	X	Y	Z
Bank A/c		1,24,600	1,24,600	39,800	Balance b/d	75,000	75,000	15,000
(bal. figure)					General Reserve	20,000	20,000	10,000
					Realisation A/c	29,600	29,600	14,800
		1,24,600	1,24,600	39,800		1,24,600	1,24,600	39,800

 

      Bank  Account                                          

Dr.					Cr.
Particulars		Amount (₹)	Particulars	Amount (₹)
Balance b/d		22,500	Realisation A/c	1,17,500
Realisation A/c		3,84,000	X’s Capital A/c	1,24,600
			Y’s Capital A/c	1,24,600
			Z’s Capital A/c	39,800
		4,06,500		4,06,500