Question

Balance Sheet of P, Q and R as at 31st March, 2019, who were sharing profits in the ratio of 5 : 3 : 1, was:
 

Liabilities		Amount (₹)	Assets		Amount (₹)
Bills Payable		40,000	Cash at Bank		40,000
Loan from Bank		30,000	Stock		19,000
General Reserve		9,000	Sundry Debtors	42,000
Capital A/cs:			Less: Provision for Doubtful Debts	2,000	40,000
P	44,000
Q	36,000		Building		40,000
R	20,000	1,00,000	Plant and Machinery		40,000
		1,79,000			1,79,000

 
The partners dissolved the business. Assets realised − Stock ₹ 23,400; Debtors 50%; Fixed Assets 10% less than their book value. Bills Payable were settled for ₹ 32,000. There was an Outstanding Bill of Electricity ₹ 800 which was paid off. Realisation expenses ₹ 1,250 were also paid.
Prepare Realisation Account, Partner's Capital Accounts and Bank Account.

Answer 1

Realisation Account

Dr.						Cr.
Particulars			Amount (₹)	Particulars			Amount (₹)
Building			40,000	Provision for Doubtful Debts			2,000
Plant and machinery			40,000	Bills Payable			40,000
Stock			19,000	Loan from Bank			30,000
Sundry Debtors			42,000
Bank A/c:				Bank A/c:
Bills Payable		32,000		Stock	23,400
Outstanding Bill		800		Debtors	21,000
Expenses		1,250		Building	36,000
Loan from Bank		30,000	64,050	Plant and Machinery	36,000		1,16,400
				Loss transferred to:
				P’s Capital A/c	9,250
				Q’s Capital A/c	5,550
				RCapital A/c	1,850		16,650
			2,05,050				2,05,050

 

Partners’ Capital Accounts

Dr.									Cr.
Particulars		P	Q	R	Particulars	P	Q	R
Realisation A/c (Loss)		9,250	5,550	1,850	Balance b/d	44,000	36,000	20,000
					Reserve Fund	5,000	3,000	1,000
Bank A/c		39,750	33,450	19,150
		49,000	39,000	21,000		49,000	39,000	21,000

 

Bank  Account 

Dr.					Cr.
Particulars		Amount (₹)	Particulars	Amount (₹)
Balance b/d		40,000	Realisation A/c	64,050
Realisation A/c		1,16,400	P’s Capital A/c	39,750
			Q’s Capital A/c	33,450
			R’s Capital A/c	19,150
		1,56,400		1,56,400