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Ashu and Harish Are Partners Sharing Profit and Losses as 3 : 2 . They Decided to Dissolve the Firm on 31st March, 2019. - Accountancy

Numerical

Ashu and Harish are partners sharing profit and losses as 3 : 2 . They decided to dissolve the firm on 31st March, 2019. Their Balance Sheet on the above date was:

Liabilities Amount
(₹)
Assets Amount
​(₹)
Capital A/cs:                          Building 80,000
Ashu 1,08,000    Machinery   70,000
Harish 54,000 1,62,000 Furniture   14,000
Creditors 88,000 Stock   20,000
Bank Overdraft 50,000 Investments   60,000
    Debtors   48,000
    Cash in Hand   8,000
  3,00,000   3,00,000

Ashu is to take over the building at ₹ 95,000 and Machinery and Furniture is taken over by Harish at value of ₹ 80,000. Ashu agreed to pay Creditor and Harish agreed to meet Bank overdraft. Stock and Investments are taken by both partner in profit-sharing ratio. Debtors realised for ₹ 46,000, expenses of realisation amounted to ₹ 3,000. Prepare necessary Ledger Accounts.

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Solution

Realisation Account

Dr.

 

         Cr.

 

Particulars

Amount

(₹)

Particulars

Amount

(₹)

Building

80,000

Creditors

88,000

Machinery

70,000

Bank overdraft

50,000

Furniture

14,000

Ashu’s Capital A/c (see working note)

1,43,000

Stock

20,000

Harish’s Capital A/c (see working note)

1,12,000

Investments

60,000

Cash (Debtors)

46,000

Debtors

48,000

   

Ashu’s Capital A/c (Creditors)

88,000

   

Harish’s Capital A/c (Bank Overdraft)

50,000

   

Cash (Expenses)

3,000

   

Realisation Profit

     

Ashu’s Capital A/c

3,600

     

Harish’s Capital A/c

2,400

6,000

   
 

4,39,000

 

4,39,000

 Partners’ Capital Account

Dr.

 

Cr.

 

Particulars

Ashu

Harish

Particulars

Ashu

Harish

Realisation (Assets taken)

1,43,000

1,12,000

Balance b/d

1,08,000

54,000

Cash

56,600

 

Realisation (Liabilities)

88,000

50,000

     

Realisation (Profit)

3,600

2,400

     

Cash

 

5,600

 

1,99,600

1,12,000

 

1,99,600

1,12,000

 

Cash Account

Dr.

 

Cr.

 

Particulars

Amount

(₹)

Particulars

Amount
(₹)

Balance b/d

8,000

Realisation (Expenses)

3,000

Realisation (Debtors)

46,000

Ashu’s Capital A/c

56,600

Harish’s Capital A/c

5,600

   
 

59,600

 

59,600


Working Notes :

 

Ashu

Harish

Building

95,000

 

Machinery and Furniture

 

80,000

Stock (3:2)

12,000

8,000

Investment (3:2)

36,000

24,000

 

1,43,000

1,12,000

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 28 | Page 59
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