Question

Priya, Komal and Rakhi were in partnership sharing profits and losses in the ratio of 2 : 1 : 1. They decided to dissolve the partnership. On that date of dissolution, Sundry Assets (including cash ₹ 5,000) amounted to ₹ 88,000, assets realised ₹ 80,000 (including an unrecorded asset which realised ₹ 4,000). A contingent liability on account of bills discounted ₹ 8,000 was paid by the firm. The Capital Accounts of Priya, Komal and Rakhi showed a balance of ₹ 20,000 each.
Prepare Realisation Account, Partners’ Capital Accounts and Cash Account.

Answer 1

Dr.	Realisation Account						Cr.
Particulars			Amount Rs	Particulars		Amount Rs
Sundry Assets			83,000	Sundry Liabilities		28,000
				Cash A/c (Assets realised)		80,000
Cash A/c:				Loss transferred to:
Sundry  Liabilities		28,000		Priya’s Capital A/c	5,500
Contingent Liabilities		8,000	36,000	Komal’s Capital A/c	2,750
				Rakhi’s Capital A/c	2,750	11,000
			1,19,000			1,19,000

 

Dr.	Partners’ Capital Accounts								Cr.
Particulars		Priya	Komal	Rakhi	Particulars	Priya	Komal	Rakhi
Realisation A/c (Loss)		5,500	2,750	2,750	Balance b/d	20,000	20,000	20,000
Bank A/c		14,500	17,250	17,250
		20,000	20,000	20,000		20,000	20,000	20,000

 

Dr.	Cash Account				Cr.
Particulars		Amount Rs	Particulars	Amount Rs
Balance b/d		5,000	Realisation A/c	36,000
Realisation A/c		80,000	Priya’s Capital A/c	14,500
			Komal’s Capital A/c	17,250
			Rakhi’s Capital A/c	17,250
		85,000		85,000

Working Notes:

Memorandum Balance Sheet

Liabilities		Amount Rs	Assets	Amount Rs
Capital A/cs:			Cash in Hand	5,000
Priya	20,000		Sundry Assets	83,000
Komal	20,000
Rakhi	20,000	60,000
Sundry Liabilities		28,000
(Balancing figure)
		88,000		88,000