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Prepare Realisation Account, Capital Accounts and Cash Account - Accountancy

Ledger

Sanjay, Tarun and Vineet shared profit in the ratio of 3:2:1. On December 31,2017 their balance sheet was as follows:
Balance Sheet of Sanjay, Tarun and Vineet as on December 31, 2017

Liabilities Amt
(Rs.)
Amt
(Rs.)
Assets Amt
(Rs.)
Capitals:   270,000 Plant 90,000
Sanjay 100,000 Debtors 60,000
Tarun 100,000 Furniture 32,000
Vineet 70,000 Stock 60,000
Creditors   80,000

Investments

70,000
Bills payable   30,000 Bills receivable 36,000
      Cash in hand 32,000
    380,000   380,000

On this date the firm was dissolved. Sanjay was appointed to realise the assets. Sanjay was to receive 6% commission on the sale of assets (except cash) and was to bear all expenses of Realisation.
Sanjay realised the assets as follows: Plant Rs 72,000, Debtors Rs 54,000, Furniture Rs 18,000, Stock 90% of the book value, Investments Rs 76,000 and Bills receivable Rs 31,000. Expenses of Realisation amounted to Rs 4,500.
Prepare Realisation Account, Capital Accounts and Cash Account

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Solution

Books of Sanjay, Tarun and Vineet
Realisation Account
Dr.                                                                                               Cr.

Particulars Amt (Rs.)  Amt (Rs.) Particulars  Amt (Rs.)  Amt (Rs.)
Plant   90,000 Creditors   80,000
Debtors   60,000 Bills Payable   30,00
Furniture   32,000 Cash:   305,000
Stock   60,000 Plant 72,000
Investment   70,000 Debtors 54,000
Bills Receivable   36,000 Furniture 18,000
Cash :   110,000 Stock 54,000
Creditors 80,000 Investments 76,000
Bills Payable 30,000 Bills Receivable 31,000
Sanjay’s Capital A/c
(6% commission)
  18,300 Loss transferred to :   61,300
      Sanjay’s Capital 30,650
      Tarun’s Capital A/c 20,433
      Vineet’s Capital A/c 10,217
    476,300     476,300

Partners’ Capital Account

Dr.                                                                                                 Cr.

Particulars Sanjay Tarun Vineet Particulars Sanjay Tarun Vineet
Realisation 
(Loss)
30,650 20,433 10,217 Balance b/d 100,000 100,000 70,000
Cash 87,650 79,567 59,783 Realisation 
(commission)
18,300 - -
  118,300 100,000 70,000   118,300 100,000 70,000

                                                 Cash Account
Dr.                                                                                                 Cr.

Particulars Amt
(Rs.)
Particulars Amt
(Rs.)
Balance b/d 32,000 Realisation 110,000
Realisation 305,000 Sanjay’s Capital A/c 87,650
    Tarun’s Capital A/c 79,567
    Vineet’s Capital A/c 59,783
  337,000   337,000
Concept: Accounting Treatment of Bill - Journal Entries and Ledger
  Is there an error in this question or solution?
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APPEARS IN

NCERT Class 12 Accountancy - Not-for-profit Organisation and Partnership Accounts
Chapter 5 Dissolution of Partnership Firm
Exercise | Q 17 | Page 254
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