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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:On the Above Data the Firm Was Dissolved. - Accountancy

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Question

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:On the above data the firm was dissolved. 

            Balance Sheet of Ramesh and Umesh as on                            31st March, 2013

Liabilities

Amount

Rs

Assets

Amount

Rs

Creditors

1,70,000

Bank

1,10,000

Workmen’s Compensation Fund

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

Capitals:

 

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

 

 

 

(i) Ramesh took over 50% of stock at Rs 10,000 less than book value. The remaining stock was sold at a loss of Rs 15,000. Debtors were realised at a discount of 5%.
(ii) Furniture was taken over by Umesh for Rs 50,000 and machinery was sold for Rs 4,50,000.
(iii) Creditors were paid in full.
(iv) There was an unrecorded bill for repairs for Rs 1,60,000 which was settled at Rs 1,40,000.

Prepare Realisation Account.

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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

 

 

 

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2013-2014 (March) Foreign Set 1

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Assets
Amount
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Balance sheet as on 31st march 2019

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Amount ₹

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Balance Sheet as on 31st March, 2020

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Capitals:   40,500 Bank   11,250
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Pass the necessary Journal Entries in the books of the firm.


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