Advertisement Remove all ads

Ramesh and Umesh Were Partners in a Firm Sharing Profits in the Ratio of Their Capitals. on 31st March, 2013, Their Balance Sheet Was as Follows: - Accountancy

Numerical

Ramesh and Umesh were partners in a firm sharing profits in the ratio of their capitals. On 31st March, 2013, their Balance Sheet was as follows:

Liabilities Amount
(₹)
Assets Amount
(₹)
Creditors 1,70,000 Bank 1,10,000
Workmen Compensation Reserve   2,10,000 Debtors 2,40,000
General Reserve 2,00,000 Stock 1,30,000
Ramesh's Current Account 80,000 Furniture 2,00,000
Capital A/cs:   Machinery 9,30,000
Ramesh 7,00,000   Umesh's Current Account   50,000
Umesh 3,00,000 10,00,000      
  16,60,000   16,60,000


On the above date the firm was dissolved.
(a) Ramesh took over 50% of stock at ₹ 10,000 less than book value. The remaining stock was sold at a loss of ₹ 15,000. Debtors were realised at a discount of 5%.
(b) Furniture was taken over by Umesh for ₹ 50,000 and machinery was sold for ₹ 4,50,000.
(c) Creditors were paid in full.
(d) There was an unrecorded bill for repairs for ₹ 1,60,000 which was settled at ₹ 1,40,000.
Prepare Realisation Account.

Advertisement Remove all ads

Solution

Realisation Account

Dr.

 

Cr.

Particulars

Amount

Rs

Particulars

Amount

Rs

Sundry Assets-                        

 

Creditors

1,70,000

Debtors

2,40,000

 

Ramesh’s Current A/c (Stock)

55,000

Stock

1,30,000

 

Cash A/c (Assets Realised)

 

Furniture

2,00,000

 

Stock

50,000

 

Machinery             

9,30,000

15,00,000

Machinery

4,50,000

 

 

 

Debtors

2,28,000

7,28,000

To Cash A/c (Liabilities)

 

Umesh’s Current A/c (Furniture)

50,000

Creditors

1,70,000

 

 

 

Outstanding Bill

1,40,000

3,10,000

Realisation Loss

 

 

 

  Ramesh’s
  Current A/c

5,64,900

 

 

 

Umesh’s Current A/c

2,42,100

8,07,000

 

18,10,000

 

18,10,000

Concept: Accounting Treatment of Bill - Journal Entries and Ledger
  Is there an error in this question or solution?
Advertisement Remove all ads

APPEARS IN

TS Grewal Class 12 Accountancy - Double Entry Book Keeping Volume 1
Chapter 7 Dissolution of a Partnership Firm
Exercise | Q 18 | Page 55
Advertisement Remove all ads
Advertisement Remove all ads
Share
Notifications

View all notifications


      Forgot password?
View in app×