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X, Y And Z Entered into a Partnership and Contributed ₹ 9,000; ₹ 6,000 And ₹ 3,000 Respectively - Accountancy

Numerical

X, Y and Z entered into a partnership and contributed ₹ 9,000; ₹ 6,000 and ₹ 3,000 respectively. They agreed to share profits and losses equally. The business lost heavily during the very first year and they decided to dissolve the firm. After realising all assets and paying off liabilities, there remained a cash balance of ₹ 6,000. 
Prepare Realisation Account and Partner's Capital Accounts.

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Solution

Realisation Account

Dr.

 

Cr.

Particulars

Amount

Rs

Particulars

Amount

Rs

Sundry Assets (WN 2)

18,000

Cash A/c (Asset realised )

6,000

 

 

Loss transferred to: 

 

 

 

X’s Capital A/c

4,000

 

 

 

Y’s Capital A/c

4,000

 

 

 

Z’s Capital A/c

4,000

12,000

 

18,000

 

18,000

 

Partners’ Capital Accounts

Dr.

 

Cr.

Particulars

X

Y

Z

Particulars

X

Y

Z

Realisation A/c (Loss)

4,000

4,000

4,000

Balance b/d

9,000

6,000

3,000

Cash A/c

5,000

2,000

Cash A/c

1,000

 

9,000

6,000

4,000

 

9,000

6,000

4,000


Working Notes

WN 1

Cash Account

Dr.

 

Cr.

Particulars

Amount

Rs

Particulars

Amount

Rs

Realisation A/c

6,000

X’s Capital A/c

5,000

Z’s Capital A/c

1,000

Y’s Capital A/c

2,000

 

7,000

 

7,000


WN 2

Memorandum Balance Sheet

Liabilities 

Amount

Rs

Assets 

Amount

Rs

Capital A/cs:

 

Sundry Assets

18,000

X’s Capital A/c

9,000

 

(Balancing figure)     

 

Y’s Capital A/c

6,000

 

 

 

Z’s Capital A/c

3,000

18,000

 

 

 

18,000

 

18,000

Concept: Accounting Treatment of Bill - Journal Entries and Ledger
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APPEARS IN

TS Grewal Class 12 Accountancy - Double Entry Book Keeping Volume 1
Chapter 7 Dissolution of a Partnership Firm
Exercise | Q 47 | Page 67
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