Susan, Geeta and Rashi are partners sharing profits and losses in the ratio of 5:3:2. Their Balance Sheet as at 31st March, 2017, is as under:
Balance Sheet of Susan, Geeta and Rashi As at 31st March, 2017
|Sundry Creditors||50,000||Cash at Bank||70,000|
|Workmen Compensation Reserve||25,000||
Sundry Debtor 65,000
Less Provision for Doubtful Debts (5,000
|Employees Provident Fund||5,000||Goodwill||50,000|
The partners decided to dissolve their partnership on 31st March, 2017. The following transactions took place at the time of dissolution :
(a) Realization expenses of 2,000 were paid by Susan on behalf of the firm.
(b) Geeta took over the goodwill for her own business at 40,000.
(c) Building was taken over by Rashi at 3,00,000.
(d) Only 80% of the debtors paid their dues.
(e) Furniture was sold for 97,000.
(f) Bank Loan was settled along with interest of 5,000. You are required to prepare the Realization Account.
To Sundry Assets
S. Debtors 65,000
|By Provision for bad debts|
|To Susan’s Cap. (Real exp)||2,000||
By Sundry Liabilities
Bank Loan 55,000
Bank Loan 60,000
|By Geeta’s Capital (GW)||40,000|
|By Rashi’s Capital (Bldg)||3,00,000|
|By Susan’s Capital A/c||54,000|
|By Geeta’s Capital||32,400|
|By Rashi’s Capital||21,600|