Advertisement Remove all ads

Bale and Yale Are Equal Partners of a Firm. They Decide to Dissolve Their Partnership on 31st March - Accountancy

Numerical

Bale and Yale are equal partners of a firm. They decide to dissolve their partnership on 31st March, 2019 at which date their Balance Sheet stood as:

Liabilities Assets
Capital A/cs:   Building 45,000
Bale 50,000   Machinery 15,000
Yale 40,000 90,000 Furniture 12,000
General Reserve   8,000 Debtors 8,000
Bale's Loan A/c   3,000 Stock 24,000
Creditors   14,000 Bank 11,000
    1,15,000   1,15,000

(a) The assets realised were:
Stock ₹ 22,000; Debtors ₹ 7,500; Machinery ₹ 16,000; Building ₹ 35,000.
(b) Yale took over the Furniture at ₹ 9,000.
(c) Bale agreed to accept ₹ 2,500 in full settlement of his Loan Account.
(d) Dissolution Expenses amounted to ₹ 2,500.
Prepare the:
(i) Realisation Account;    (ii) Capital Accounts of Partners;
(iii) Bale's Loan Account; (iv) Bank Account.

Advertisement Remove all ads

Solution

Realisation Account

Dr.

 

Cr.

Particulars

Amount

(₹)

Particulars

Amount

(₹)

Building

45,000

Creditors

14,000

Machinery

15,000

Bank  A/c:

 

Furniture

12,000

Stock

22,000

 

Debtors

8,000

Debtors

7,500

 

Stock

24,000

Machinery

16,000

 

 

 

Building

35,000

80,500

Creditors

14,000

 

Bale’s Loan

500

Expenses

2,500

16,500

Yale’s Capital A/c (Furniture)

9,000

 

 

Loss transferred to:

 

 

 

Bale’s Capital A/c

8,250

 

 

 

Yale’s Capital A/c

8,250

16,500

 

1,20,500

 

1,20,500

Partners’ Capital Accounts

Dr.

 

Cr.

Particulars

Bale

Yale

Particulars

Bale

Yale

Realisation A/c (Loss)

8,250

8,250

Balance b/d

50,000

40,000

Realisation A/c

9,000

General Reserve       
(Old Ratio)   

4,000

4,000

Bank A/c

45,750

26,750

 

 

 

 

54,000

44,000

 

54,000

44,000

Bale’s Loan Account

Dr.

 

Cr.

Particulars

Amount

(₹)

Particulars

Amount

(₹)

Bank A/c

2,500

Balance b/d

3,000

Realisation A/c

500

 

 

 

3,000

 

3,000

Bank Account 

Dr.

 

Cr.

Particulars

Amount

(₹)

Particulars

Amount

(₹)

Balance b/d

11,000

Bale’s Loan

2,500

Realisation A/c

80,500

Realisation A/c

16,500

 

 

Bale’s Capital A/c

45,750

 

 

Yale’s Capital A/c

26,750

 

91,500

 

91,500

Concept: Accounting Treatment of Bill - Journal Entries and Ledger
  Is there an error in this question or solution?
Advertisement Remove all ads

APPEARS IN

TS Grewal Class 12 Accountancy - Double Entry Book Keeping Volume 1
Chapter 7 Dissolution of a Partnership Firm
Exercise | Q 22 | Page 57
Advertisement Remove all ads
Advertisement Remove all ads
Share
Notifications

View all notifications


      Forgot password?
View in app×