Following is the Balance Sheet as on 31 St March 2016 of M/S . Jay and Ajay :

Question

Following is the balance sheet as on 31 st march 2016 of M/s . Jay and Ajay :

Balance sheet as on 31st MArch 2016

Liabilities	Amount	Assets		Assets
Capital A/cs :		Cash at bank		18000
Jay	150000	Stock		75000
Ajay	150000	Furniture		90000
Reserve fund	30000	Investment		30000
Loan from Jay	3000	Machinery		90000
Bills payable	6000	Buildings		45000
Creditors	30000	Debtors	24000	21000
		Less : R.D.D	3000	21000
	369000			369000

The firm was dissolved on 31st March , 2016 and the assets realised were as under :

(1) Jay look over the investment at ₹ 27600 and Ajay took over the furniture at ₹ 84000.

(2) The assets were realised as follows :

Stock 73500 ;

Debtors 22500 ;

Machinery 84000 ;

Building 42000

(3) The creditors were paid off at a discount of 900 and other liabilities were paid in full.

(4) Dissolution expenses were 4200

(5) Jay and Ajay were sharing profits and losses in the ratio of 3 : 2.

Prepare :

1) Realisation Account

2) Capital Account of all partners

3) Bank Account

Ledger

Solution

In the books of the firm.

Realisation A/c

Particulars	Rs.	Rs.	Particulars	Rs.	Rs.
To Sundry Assets			By Sundry Liabilities
Stock	75000		Bills Payable	6000
Furniture	90000		Creditors	30000	36000
Investments	30000		By R.D.D.		3000
Machinery	90000
Buildings	45000		By Jay's Capital A/c [Investment took over]		27600
Debtors	24000	354000	By Ajay's Capital A/c [Furniture Took Over]		84000
To Bank A/c			By Bank A/c
Creditors	29100		Stock	73500
Bills Payable	6000		Debtors	22500
Dissolution Expenses	4200	39300	Machinery	84000
			Building	42000	222000
			By Loss on Realisation A/c
			Jay's Capital A/c	12420
			Ajay's Capital A/c	8280	20700
	393300				393300

Partners Capital Accounts

Particulars	Jay	Ajay	Particulars	Jay	Ajay
To Realisation A/c	27600	84000	By Balance b/d	150000	150000
To Realisation A/c [Loss]	12420	8280	By Reserve Fund	18000	12000
To Bank A/c	127980	69720
	168000	162000		168000	162000

Bank Account

Particulars	Rs.	Particulars	Rs.
To Balance b/d	18000	By Realisation A/c	39300
To Realisation A/c	222000	By Jay's Loan A/c	3000
		By Jay's Capital A/c	127980
		By Ajay's Capital Ac/	69720
	240000		240000

Jay's Loan Account

Particulars	Rs.	Particulars	Rs.
To Bank A/c	3000	By Balance b/d	3000

	3000		3000

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Concept of Dissolution of Partnership Firm

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Q 5.A Q 4 Q 5.B

2017-2018 (July) Set 1

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2017-2018 (July) Set 1 (with solutions)

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Bhavin's loan	10,000	Investment	16,000
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