Question

Virat, Rohit and Hardik were partners sharing Profits and Losses in the ratio 2 : 2 : 1. They decided to dissolve the firm on 31^st March, 2021 when their position was as under:

Balance Sheet as on 31st March, 2021
Liabilities	Amount (₹)	Assets	Amount (₹)
Capital Accounts:		Building	1,56,000
Virat	52,000	Furniture	90,000
Rohit	44,000	Goodwill	70,000
Hardik	36,000	Debtors	40,000
Creditors	2,40,000	Bank	16,000
	3,72,000		3,72,000

The firm was dissolved on the above date and the assets were realised as under:

1. Building - ₹ 80,000, Fumiture - ₹ 60,000, Debtors - ₹ 20,000.
2. Realisation expenses amounted to ₹ 4,000.
3. All the partners were insolvent and amount recovered from Virat ₹ 4,000 and Rohit ₹ 4,000.

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

Answer 1

In the books of the firm
Dr.	Realisation Account				Cr.
Particulars	Amount (₹)	Amount (₹)	Particulars	Amount (₹)	Amount (₹)
To Sundry Assets A/c		3,56,000	By Bank A/c		1,60,000
Building	1,56,000		Building	80,000
Furniture	90,000		Furniture	60,000
Goodwill	70,000		Debtors	20,000
Debtors	40,000		By Partners’ Capital A/cs (Loss transferred)		2,00,000
To Bank A/c (Realisation expenses paid)		4,000	Virat	80,000
			Rohit	80,000
			Hardik	40,000
		3,60,000			3,60,000

 

Dr.	Partners’ Capital Accounts						Cr.
Particulars	Virat	Rohit	Hardik	Particulars	Virat	Rohit	Hardik
To Realisation A/c (Loss on Realisation)	80,000	80,000	40,000	By Balance b/d	52,000	44,000	36,000
				By Bank A/c	4,000	4,000	-
				By Deficiency A/c	24,000	32,000	4,000
	80,000	80,000	40,000		80,000	80,000	40,000

 

Dr.	Bank Account		Cr.
Particulars	Amount (₹)	Particulars	Amount (₹)
To Balance b/d	16,000	By Realisation A/c (Realisation expenses paid)	4,000
To Realisation A/c (Assets Realised)	1,60,000	By Creditors A/c	1,80,000
To Virat’s Capital A/c	4,000
To Rohit’s Capital A/c	4,000
	1,84,000		1,84,000

 

Dr.	Creditors Account		Cr.
Particulars	Amount (₹)		Amount (₹)
To Bank A/c	1,80,000	By Balance b/d	2,40,000
To Deficiency A/c	60,000
	2,40,000		2,40,000

 

Dr.	Deficiency Account		Cr.
Particulars	Amount (₹)		Amount (₹)
To Virat’s Capital A/c	24,000	By Creditor’s A/c	60,000
To Rohit’s Capital A/c	32,000
To Hardik’s Capital A/c	4,000
	60,000		60,000