Question

Balance Sheet of a firm as at 31st March, 2019, when it was decided to dissolve the same, was:

Liabilities				Amount (₹)	Assets			Amount (₹)
Sundry Creditors				14,000	Cash at Bank			640
General Reserve				500	Stock			4,740
Capital A/cs:					Debtors			5,540
X		4,000			Machinery			10,580
Y		3,000		7,000
				21,500				21,500

₹19,500 were realised from all assets except Cash at Bank. The cost of winding up came to ₹ 440. X and Y shared profits in the ratio of 2 : 1 respectively.
Prepare Realisation Account and Capital Accounts of Partners.

Answer 1

Realisation Account

Dr.							Cr.
Particulars			Amount (₹)	Particulars		Amount (₹)
Machinery			10,580	Sundry Creditors		14,000
Stock			4,740	Bank (Assets Realised)		19,500
Debtors			5,540
Bank A/c:				Loss transferred to:
Creditors		14,000		X’s Capital A/c	1,200
Expenses		440	14,440	Y’s Capital A/c	600	1,800
			35,300			35,300

Partners’ Capital Accounts

Dr.							Cr.
Particulars		X	Y	Particulars	X	Y
Realisation A/c (Loss)		1,200	600	Balance b/d	4,000	3,000
				Reserve for Contingencies	333	167
Bank A/c		3,133	2,567
		4,333	3,167		4,333	3,167

Bank Account

Dr.					Cr.
Particulars		Amount (₹)	Particulars	Amount (₹)
Balance b/d		640	Realisation A/c	14,440
Realisation A/c		19,500	X’s Capital A/c	3,133
			Y’s Capital A/c	2,567
		20,140		20,140