Question

Shweta, Nupur, and Sanika are partners sharing profits and losses in the ratio of 3:2:1. Their balance sheet as on 31^st March 2019 was as follows:

Balance sheets as on 31st March 2019.
Liabilities	Amount (₹)	Assets	Amount (₹)
Capital A/c		Sundry Assets	1,60,000
Shweta	65,000	Cash at Bank	5,000
Nupur	15,000	Capital A/c: Sanika	10,000
Sundry Creditors	95,000
	1,75,000		1,75,000

The firm is dissolved as on 31^st March 2019. Sundry Assets realised @ 60% of its book value. Realisation expenses ₹ 2000 paid by Shweta, Nupur, and Sanika both are insolvent. Nupur’s private estate has got a surplus of ₹ 3,000 and that of Sanika ₹ 8,000.

Show necessary ledger accounts to close the books of the firm.

Answer 1

In the books of Shweta, Nupur and Sanika
Dr.		Realisation Account			Cr.
Particulars		Amount (₹)	Particulars	Amount (₹)	Amount (₹)
To Sundry Assets A/c		1,60,000	By Sundry Liabilities A/c (Sundry Creditors)		95,000
To Bank A/c (Sundry Creditors)		95,000	By Bank A/c (Sundry Assets 60%)		96,000
To Shweta’s Capital A/c (realisation expense)		2,000	By Partners’ Capital A/c (Loss on realisation transferred)		66,000
			Shweta	33,000
			Nupur	22,000
			Sanika	11,000
		2,57,000			2,57,000

 

Dr.		Partners’ Capital Accounts						Cr.
Particulars		Shweta (₹)	Nupur (₹)	Sanika (₹)	Particulars	Shweta (₹)	Nupur (₹)	Sanika (₹)
To Balance b/d		-	-	10,000	By Balance b/d	65,000	15,000	-
To realisation A/c – Loss		33,000	22,000	11,000	By Bank A/c (Private assets surplus)	-	3,000	8,000
To Nupur’s Capital A/c		4,000	-	-	By Shweta’s Capital A/c (Deficiency)	-	4,000	13,000
To Sanika’s Capital A/c		13,000	-	-	By realisation A/c (realisation exp.)	2,000	-	-
To Bank A/c		17,000	-	-
		67,000	22,000	21,000		67,000	22,000	21,000

 

Dr.	Bank Account				Cr.
Particulars		Amount (₹)	Particulars	Amount (₹)
To Balance b/d		5,000	By Sundry Creditors A/c	95,000
To Nupur’s Capital A/c		3,000	By Shweta’s Capital A/c	17,000
To Sanika’s Capital A/c		8,000
To Realisation A/c (Assets realised)		96,000
		1,12,000		1,12,000

Working Notes:

1. From the private assets of Nupur and Sanika, ₹ 3,000 and ₹ 8,000 received and added to the capital accounts. The deficiency of ₹ 4,000 and ₹ 13,000 arrived. Shweta alone has to bear this deficiency.
2. 60% of Debtors realised i.e. 60% of ₹ 1,60,000 = ₹ 96,000.