Question

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.

Answer 1

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