Question

Shilpa, Meena and Nanda decided to dissolve their partnership on March 31,2017. Their profit sharing ratio was 3:2:1 and their Balance Sheet was as under:

Balance Sheet of Shilpa, Meena and Nanda as on March 31, 2017           

Liabilities	Amount (Rs.)	Assets	Amount (Rs.)
Capitals:		Land	81,000
Shilpa	80,000	Stock	56,760
Meena	40,000	Debtors	18,600
Bank loan	20,000	Nanda’s Capital Account	23,000
Creditors	37,000	Cash	10,840
Provision for doubtful debt	1,200
General Reserve	12,000
	190,200		190,200

The stock of value of Rs 41,660 are taken over by Shilpa for Rs 35,000 and she agreed to discharge bank loan. The remaining stock was sold at Rs 14,000 and debtors amounting to Rs 10,000 realised Rs 8,000. land is sold for Rs 1,10,000. The remaining debtors realised 50% at their book value. Cost of Realisation amounted to Rs 1,200. There was a typewriter not recorded in the books worth Rs 6,000 which were taken over by one of the Creditors at this value. Prepare Realisation Account.

Answer 1

In the books of Shilpa, Meena and Nanda
Realisation Account

Dr.                                                                                              Cr.

Particulars	Amt (Rs.)	Amt (Rs.)	Particulars	Amt (Rs.)	Amt (Rs.)
Land		81,000	Bank Loan		20,000
Stock		56,760	Creditors		37,000
Debtors		18,600	Provision for doubtful debts		1,200
Shilpa’s Capital A/c		20,000	Shilpa’s Capital A/c (Stock)		35,000
Cash :		32,200	Cash:		136,300
Creditors	31,000		Stock	14,000
Realisation Expenses	1,200		Debtors	12,300
Profit transferred to		20,940	Land	110,000
Shilpa’s Capital A/c	10,470
Meena’s Capital A/c	6,980
Nanda’s Capital A/c	3,490
		229,500			229,500

Partners’ Capital Account
Dr.                                                                                             Cr.

Particulars	Shilpa	Meena	Nanda	Particulars	Shilpa	Meena	Nanda
Balance b/d	-	-	23,000	Balance b/d	80,000	40,000	-
Realisation (Stock)	35,000	-	-	General Reserve	6,000	4,000	2,000
Cash	81,470	50,980	-	Realisation (Bank Loan)	20,000	-	-
				Realisation (Profit)	10,470	6,980	3,490
				Cash	-	-	17,510
	116,470	50,980	23,000		116,470	50,980	23,000

                                                 Cash Account
Dr.                                                                                             Cr.

Particulars	Amt (Rs.)	Particulars	Amt (Rs.)
Balance b/d	10,840	Realisation (Expenses)	32,200
Realisation (Assets)	136,300	Shilpa’s Capital A/c	81,470
Nanda’s Capital A/c	17,510	Meena’s Capital A/c	50,980
	164,650		164,650