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Anju, Manju and Sanju Were Partners in a Firm Sharing Profits in the Ratio of 2 : 2 : 1. on 31st March, 2019, Their Balance Sheet Was: - Accountancy

Numerical

Anju, Manju and Sanju were partners in a firm sharing profits in the ratio of 2 : 2 : 1. On 31st March, 2019, their Balance Sheet was:

Liabilities Amount
(₹)
Assets Amount
(₹)
Creditors 50,000 Cash  60,000
Bank Loan 35,000 Debtors 75,000
Employees' Provident Fund 15,000 Stock 40,000
Investments Fluctuation Reserve 10,000 Investments 20,000
Commission Received in Advance 8,000 Plant 50,000
Capital A/cs:   Profit and Loss A/c 3,000
Anju 50,000      
Manju 50,000      

Sanju

30,000 1,30,000    
  2,48,000   2,48,000

   
On this date, the firm was dissolved. Anju was appointed to realise the assets. Anju was to receive 5% commission on the sale of assets (except cash) and was to bear all expenses of realisation.
Anju realised the assets as follows: Debtors ₹ 60,000; Stock ₹ 35,500; Investments ₹ 16,000; Plant 90% of the book value. Expenses of Realisation amounted to ₹ 7,500. Commission received in advance was returned to customers after deducting ₹ 3,000.
Firm had to pay ₹ 8,500 for Outstanding Salary, not provided for earlier, Compensation paid to employees amounted to ₹ 17,000. This liability was not provided for in the above Balance Sheet. ₹ 20,000 had to be paid for Employees' Provident Fund.
Prepare Realisation Account, Capital Accounts of Partners and Cash Account. 

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Solution

Realisation Account

Dr.

 

Cr.

Particulars

Amount

Rs

Particulars

Amount

Rs

Debtors

75,000

Creditors

50,000

Stock

40,000

Bank Loan

35,000

Investments

20,000

Provident Fund

15,000

Plant

50,000

Commission Received in Advance

8,000

Cash A/c:

 

Investments Fluctuation Fund

10,000

Commision Received in Advance

5,000

 

Cash A/c:

 

Outstanding Salary

8,500

 

Debtors

60,000

 

Compensation paid to Employees

17,000

 

Stock

35,500

 

Provident Fund 

20,000

 

Investments

16,000

 

Creditors

50,000

 

Plant

45,000

1,56,500

Bank Loan

35,000

1,35,500

Loss transferred to:

 

Anuj’s Capital A/c (Commission)   

7,825

Anju’s Capital A/c

21,530

 

 

 

Manju’s Capital A/c

21,530

 

 

 

Sanju’s Capital A/c

10,765

53,825

 

3,28,325

 

3,28,325

 

Partners’ Capital Accounts

Dr.

 

Cr.

Particulars

Anju 

Manju 

Sanju 

Particulars

Anju 

Manju 

Sanju 

Profit and Loss A/c

1,200

1,200

600

Balance b/d

 50,000

50,000

30,000

Realisation A/c

21,530

21,530

10,765

Realisation A/c

7,825

Cash A/c

35,095

27,270

18,635

 

 

 

 

 

57,825

50,000

30,000

 

57,825

50,000

30,000

 

Cash Account

Dr.

 

Cr.

Particulars

Amount

Rs

Particulars

Amount

Rs

Balance b/d

60,000

Realisation A/c

1,35,500

Realisation A/c         

1,56,500

Anju’s Capital A/c

35,095

 

 

Manju’s Capital A/c   

27,270

 

 

Sanju’s Capital A/c

18,635

 

2,16,500

 

2,16,500

Working Notes:

WN 1

`"Anju's Commission" = "Assets Realised" xx 5/100`

                                   = `1,56,500 xx 5/100 = "Rs" 7,825`

WN2 

`"Realisation of Plant" = 50,000 xx 90/100 = "Rs" 45,000`

Concept: Accounting Treatment of Bill - Journal Entries and Ledger
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APPEARS IN

TS Grewal Class 12 Accountancy - Double Entry Book Keeping Volume 1
Chapter 7 Dissolution of a Partnership Firm
Exercise | Q 37 | Page 64
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