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Ashok, Babu and Chetan Are in Partnership Sharing Profit in the Proportion of 1/2, 1/3, 1/6 Respectively - Accountancy

Numerical

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.

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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

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 33 | Page 62
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