Question

Tara and Anjali were partners in a firm sharing profits and losses equally. They dissolved their partnership firm on 31st March, 2021.

On this date, the Balance Sheet of their firm; apart from the realisable assets and outside liabilities, showed the following:

	₹
Tara’s Capital	35,000 (Cr.)
Anjali’s Capital	9,000 (Dr.)
Tara’s Loan	3,000 (Dr.)
Bank Account	?

Additional information:

On the dissolution of the firm:

1. The firm realised ₹ 22,000 from the sale of assets and paid ₹ 7,000 to discharge its outside liabilities.
2. The Realisation Account showed a profit of ₹ 6,000 which was shared by the partners in their profit-sharing ratio.
3. The Partner’s Capital Accounts were closed, with a partner, either bringing in cash to cover the deficit of her capital or a partner being paid off her surplus capital.
4. The Bank Account was closed.

You are required to prepare the Bank Account on the date of dissolution of the firm to determine its balance at bank as shown in the Balance Sheet as at 31st March, 2021.

Answer 1

Dr.	Bank A/c		Cr.
Particulars	Amount (₹)	Particulars	Amount (₹)
To Balance b/d (Balancing Figure)	14,000	By Realisation A/c (Liabilities paid)	7,000
To Realisation A/c (Assets Realised)	22,000	By Tara’s Capital A/c (Amount paid off)	35,000
To Anjali’s Capital A/c (Amount brought in)	6,000
	42,000		42,000

Working Note:

Dr.	Partner’s Capital A/c				Cr.
Particulars	Tara (₹)	Anjali (₹)	Particulars	Tara (₹)	Anjali (₹)
To Balance b/d	-	9,000	By Balance b/d	35,000	-
To Tara’s Loan	3,000	-	By Realisation A/c (Profit)	3,000	3,000
To Bank A/c (Amount paid off)	35,000	-	By Bank A/c (Amount brought in)	-	6,000
	38,000	9,000		38,000	9,000