Question

Following was the Balance Sheet of X, Y and Z on 31st March, 2026:

Liabilities	₹	₹	Assets	₹
Sundry Creditors		50,000	Bank	20,000
Bills Payable		10,000	Sundry Debtors	30,000
Y’s Loan		8,000	Stock	20,000
R’s Loan		12,000	Furniture	15,000
General Reserve		20,000	Land and Building	2,45,000
Capital A/cs:		2,50,000	Y’s Capital	20,000
X’s	1,00,000
Z’s	1,50,000
		3,50,000		3,50,000

The firm was dissolved on the above date on the following terms:

1. Debtors realised ₹ 28,000; and Creditors and Bills Payable were paid at a discount of 10%.
2. Stock was taken over by Z for ₹ 15,000 and furniture was sold for ₹ 12,000.
3. Land and Building was sold for ₹ 3,80,000.
4. R’s loan was paid by a cheque for the same amount.

Prepare the Realisation Account, Partners’ Capital Accounts and Bank Account.

Answer 1

Dr.	Realisation Account				Cr.
Particulars	Amount (₹)	Amount (₹)	Particulars	Amount (₹)	Amount (₹)
To Sundry Assets A/c (Transfer):		3,10,000	By Sundry Liabilities A/c (Transfer):		72,000
Sundry Debtors	30,000		Sundry Creditors	50,000
Stock	20,000		Bills Payable	10,000
Furniture	15,000		R’s Loan (External Liability)	12,000
Land and Building	2,45,000		By Z’s Capital A/c (Stock taken over)		15,000
To Bank A/c (Liabilities Paid):		66,000	By Bank A/c (Assets Realised):		4,20,000
Sundry Creditors (10% discount)	45,000		Sundry Debtors	28,000
Bills Payable (10% discount)	9,000		Furniture	12,000
R’s Loan (at book value)	12,000		Land and Building	3,80,000
To Gain (Profit) on Realisation transferred to:		1,21,000
X’s Capital A/c	40,333
Y’s Capital A/c	40,333
Z’s Capital A/c	40,334
		5,07,000			5,07,000

 

Dr.	Partners’ Capital Accounts						Cr.
Particulars	X (₹)	Y (₹)	Z (₹)	Particulars	X (₹)	Y (₹)	Z (₹)
To Balance b/d		20,000		By Balance b/d	1,00,000		1,50,000
To Realisation A/c (Stock)			15,000	By General Reserve	6,667	6,667	6,666
To Bank A/c (Final Payment)	1,47,000	27,000	1,82,000	By Realisation A/c (Gain)	40,333	40,333	40,334
	1,47,000	47,000	1,97,000		1,47,000	47,000	1,97,000

 

Dr.	Bank Account		Cr.
Particulars	Amount (₹)	Particulars	Amount (₹)
To Balance b/d	20,000	By Realisation A/c (Liabilities settled)	66,000
To Realisation A/c (Assets realised)	4,20,000	By Y’s Loan A/c	8,000
		By X’s Capital A/c	1,47,000
		By Y’s Capital A/c	27,000
		By Z’s Capital A/c	1,82,000
	4,40,000		4,40,000