Ashok, Babu and Chetan are in partnership sharing profit in the proportion of 1/2, 1/3, 1/6 respectively. They dissolve the partnership of the 31st March, 2019 when the Balance Sheet of the firm as under:
| Liabilities | Amount (₹) |
Assets | Amount (₹) |
|||||
| Sundry Creditors | 20,000 | Bank | 7,500 | |||||
| Bills Payable | 25,500 | Sundry Debtors | 58,000 | |||||
| Babu's Loan | 30,000 | Stock | 39,500 | |||||
| Capital A/cs: | Machinery | 48,000 | ||||||
| Ashok | 70,000 | Investments | 42,000 | |||||
| Babu | 55,000 | Freehold Property | 50,500 | |||||
| Chetan | 27,000 | 1,52,000 | ||||||
| Current A/cs: | ||||||||
| Ashok | 10,000 | |||||||
| Babu | 5,000 | |||||||
| Chetan | 3,000 | 18,000 | ||||||
| 2,45,500 | 2,45,500 | |||||||
The Machinery was taken over by Babu for ₹ 45,000, Ashok took over the Investments for ₹ 40,000 and Freehold property took over by Chetan at ₹ 55,000. The remaining Assets realised as follows:
Sundry Debtors ₹ 56,500 and Stock ₹ 36,500. Sundry Creditors were settled at discount of 7%. A Office computer, not shown in the books of accounts realised ₹ 9,000. Realisation expenses amounted to ₹ 3,000.
Prepare Realisation Account, Partners' Capital Accounts and Bank Account.
Solution
Realisation Account
|
Dr. |
|
Cr. |
|||||||
|
Particulars |
Amount (₹) |
Particulars |
Amount (₹) |
||||||
|
Sundry Debtors |
58,000 |
Sundry Creditors |
20,000 |
||||||
|
Stock |
39,500 |
Bills Payable |
25,500 |
||||||
|
Machinery |
48,000 |
Ashok’s Current A/c (Investment) |
40,000 |
||||||
|
Investment |
42,000 |
Babu’s Current A/c (Machinery) |
45,000 |
||||||
|
Freehold property |
50,500 |
Chetan’s Current A/c |
55,000 |
||||||
|
Bank: |
(Freehold property) |
||||||||
|
Sundry Creditors |
18,600 |
Bank: |
|||||||
|
Bills Payable |
25,500 |
Sundry Debtors |
56,500 |
||||||
|
Expenses |
3,000 |
47,100 |
Stock |
36,500 |
|||||
|
Realisation Profit |
Unrecorded Computer |
9,000 |
1,02,000 |
||||||
|
Ashok’s Current A/c |
1,200 |
||||||||
|
Babu’s Current A/c |
800 |
||||||||
|
Chetan’s Current A/c |
400 |
2,400 |
|||||||
|
2,87,500 |
2,87,500 |
||||||||
Partners' Current Account
|
Dr. |
Cr. |
|||||||||
|
Particulars |
Ashok |
Babu |
Chetan |
Particulars |
Ashok |
Babu |
Chetan |
|||
|
Realisation |
40,000 |
45,000 |
55,000 |
Balance b/d |
10,000 |
5,000 |
3,000 |
|||
|
(Assets taken) |
Realisation (Profit) |
1,200 |
800 |
400 |
||||||
|
Ashok's Capital A/c |
28,800 |
|||||||||
|
Babu's Capital A/c |
39200 |
|||||||||
|
Chetan's Capital A/c |
51600 |
|||||||||
|
40,000 |
45,000 |
55,000 |
40,000 |
45,000 |
55,000 |
|||||
Partners' Capital Account
|
Dr. |
Cr. |
|||||||||
|
Particulars |
Ashok |
Babu |
Chetan |
Particulars |
Ashok |
Babu |
Chetan |
|||
|
Ashok's Current A/c |
28,800 |
Balance b/d |
70,000 |
55,000 |
27,000 |
|||||
|
Babu's Current A/c |
39200 |
Bank A/c |
24,600 |
|||||||
|
Chetan's Current A/c |
51600 |
|||||||||
|
Bank A/c |
41,200 |
15,800 |
||||||||
|
70,000 |
55,000 |
51,600 |
70,000 |
55,000 |
51,600 |
|||||
Babu’s Loan A/c
| Dr. | Cr. | ||||
|
Particulars |
Amount (₹) |
Particulars |
Amount (₹) |
||
| Bank A/c |
30,000 |
Balance b/d |
30,000 |
||
|
30,000 |
30,000 |
||||
Bank Account
|
Dr. |
|
Cr. |
||||
|
Particulars |
Amount (₹) |
Particulars |
Amount (₹) |
|||
|
Balance b/d |
7,500 |
Realisation A/c (Payment of Expenses& Liabilities) |
47,100 |
|||
|
Realisation A/c (Assets realised) |
102,000 |
and Liabilities) |
||||
|
Chetan’s Capital A/c |
24,600 |
Babu’s Loan |
30,000 |
|||
|
Ashok’s Capital A/c |
41,200 |
|||||
|
Babu’s Capital A/c |
15,800 |
|||||
|
1,34,100 |
1,34,100 |
|||||
