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.
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 |
