Sanjay, Tarun and Vineet shared profit in the ratio of 3:2:1. On December 31,2017 their balance sheet was as follows:

Balance Sheet of Sanjay, Tarun and Vineet as on December 31, 2017

Liabilities

Amount

Rs

Assets

Amount

Rs

Capitals:

Plant

90,000

Sanjay

1,00,000

Debtors

60,000

Tarun

1,00,000

Furniture

32,000

Vineet

70,000

2,70,000

Stock

60,000

Creditors

80,000

Investments

70,000

Bills payable

30,000

Bills receivable

36,000

Cash in hand

32,000

3,80,000

3,80,000

On this date the firm was dissolved. Sanjay was appointed to realise the assets. Sanjay was to receive 6% commission on the sale of assets (except cash) and was to bear all expenses of Realisation.

Sanjay realised the assets as follows: Plant Rs 72,000, Debtors Rs 54,000, Furniture Rs 18,000, Stock 90% of the book value, Investments Rs 76,000 and Bills receivable Rs 31,000. Expenses of Realisation amounted to Rs 4,500.

Prepare Realisation Account, Capital Accounts and Cash Account

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Solution

Books of Sanjay, Tarun and Vineet

Realisation Account

Dr.

Cr.

Particulars

Amount

Rs

Particulars

Amount

Rs

Plant

90,000

Creditors

80,000

Debtors

60,000

Bills Payable

30,000

Furniture

32,000

Cash:

Stock

60,000

Plant

72,000

Investment

70,000

Debtors

54,000

Bills Receivable

36,000

Furniture

18,000

Cash :

Stock

54,000

Creditors

80,000

Investments

76,000

Bills Payable

30,000

1,10,000

Bills Receivable

31,000

3,05,000

Sanjay’s Capital A/c

18,300

Loss transferred to

(6% commission)

Sanjay’s Capital

30,650

Tarun’s Capital A/c

20,433

Vineet’s Capital A/c

10,217

61,300

4,76,300

4,76,300

Partners’ Capital Account

Dr.

Cr.

Particulars

Sanjay

Tarun

Vineet

Particulars

Sanjay

Tarun

Vineet

Realisation (Loss)

30,650

20,433

10,217

Balance b/d

1,00,000

1,00,000

70,000

Cash

87,650

79,567

59,783

Realisation (commission)

18,300

1,18,300

1,00,000

70,000

1,18,300

1,00,000

70,000

Cash Account

Dr.

Cr.

Particulars

Amount

Rs

Particulars

Amount

Rs

Balance b/d

32,000

Realisation

1,10,000

Realisation

3,05,000

Sanjay’s Capital A/c

87,650

Tarun’s Capital A/c

79,567

Vineet’s Capital A/c

59,783

3,37,000

3,37,000

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Similar questions

Sanjay, Tarun and Vineet shared profit in the ratio of 3 : 2 : 1 on December 31, 2012 Their balance sheet was as follows:
$\begin{matrix} Balance Sheet of Sanjay, Tarun and Vineet as on December 31 2013 \end{matrix}$
$\begin{matrix} Capital and Liabilities & Amt. & Assets & Amt. Capitals & Plant & 90, 000 Sanjay & 1, 00, 000 & Debtors & 60, 000 TArun & 1, 00, 000 & Furniture & 32, 000 Vineet & 70, 000 - ------ - & 2, 70, 000 & Stock & 60, 000 Creditors & 80, 000 & Investments & 70, 000 Bank Payable & 30, 000 & Bills Receivable & 36, 000 Cash in Hand & 32, 000 - ----- - & - ---- - 3, 80, 000 & 3, 80, 000 - ----- - & - ---- - \end{matrix}$
On this date, the firm was dissolved. Sanjay was appointed to realise the assets. Sanjay was to receive 6 % commission on the sale fo assets (except cash) and was to bear all expenses of realisation.
Sanjay realised the assets as follows:
Plant Rs. 72,000, Debtors Rs. 54,000, Furniture Rs. 18,000, Stock 90% of the book value. Investments Rs. 76,000 and biills receivable Rs. 31,000. Expenses of realisation amounted to 4,500. Prepare realisation account, capital account and cash account.

S, T and V shared profit in the ratio of 3:2:1. On December 31, 2016 their Balance Sheet was as follows:

$\begin{matrix} Liabilities & Amount & Assets & Amount (Rs) & (Rs) Capitals: & Plant & 90, 000 S 1, 00, 000 & Debtors & 60, 000 T 1, 00, 000 & Furniture & 32, 000 V 70, 000 - ------ - & 2, 70, 000 & Stock & 60, 000 Creditors & 80, 000 & Investments & 70, 000 Bills Payable & 30, 000 & Bills Receivable & 36, 000 Cash in Hand & 32, 000 3, 80, 000 & 3, 80, 000 \end{matrix}$

On this date firm was dissolved. S was appointed to realise the assets. S was to receive 6% of the amount realised on sale of assets. He was also to bear the expenses. S realised the assets as follows:

Plant Rs 72,000; Debtors Rs 54,000; Furniture Rs 18,000; Stock 90% of the book value, Investments Rs 76,000 and Bills Receivable Rs 31,000. Expenses of Realisation amounted to Rs 4,500.

Prepare Realisation Account.

Rita, Geeta and Ashish were partners in a firm sharing profits/losses in the ratio of 3:2:1. On March 31, 2017 their balance sheet was as follows:

Liabilities		Amount Rs	Assets	Amount Rs
Capitals:			Cash	22,500
Rita	80,000		Debtors	52,300
Geeta	50,000		Stock	36,000
Ashish	30,000	1,60,000	Investments	69,000
Creditors		65,000	Plant	91,200
Bills payable		26,000
General reserve		20,000
		2,71,000		2,71,000

On the date of above mentioned date the firm was dissolved:

1. Rita was appointed to realise the assets. Rita was to receive 5% commission on the rate of assets (except cash) and was to bear all expenses of Realisation,

2. Assets were realised as follows:

	Rs
Debtors	30,000
Stock	26,000
Plant	42,750

3. Investments were realised at 85% of the book value,

4. Expenses of Realisation amounted to Rs 4,100,

5. Firm had to pay Rs 7,200 for outstanding salary not provided for earlier,

6. Contingent liability in respect of bills discounted with the bank was also materialised and paid off Rs 9,800,

Prepare Realisation Account, Capital Accounts of Partners’ and Cash Account.

Srijan, Raman and Manan were partners in a firm sharing profits and losses in the ratio of 2:2:1. On 31st March, 2017 their Balance Sheet was as follows:

BALANCE SHEET OF SRIJAN, RAMAN AND MANAN
as on 31-03-2017
$\begin{matrix} Liabilities & Amount & Assets & Amount (R s) & (R s) Capitals : & Capital : Srijan 2, 00, 000 & Manan & 10, 000 Raman 1, 50, 000 - -------- - & 3, 50, 000 & Plant & 2, 20, 000 Creditors & 75, 000 & Investments & 70, 000 Bills payable & 40, 000 & Stock & 50, 000 Outstanding Salary & 35, 000 & Debtors & 60, 000 Bank & 10, 000 Profit and Loss & 80, 000 Total & 5, 00, 000 & Total & 5, 00, 000 \end{matrix}$

On the above date they decided to dissolve the firm:

(i) Srijan was appointed to realise the assets and discharge the liabilities. Srijan was to receive 5% commission on sale of assets (except cash) and was to bear all expenses of realisation.

(ii) Assets were realised as follows : Plant Rs 85,000; Stock Rs 33,000; Debtors Rs 47,000.

(iii) Investments were realised at 95% of the book value.

(iv) The firm had to pay Rs 7,500 for an outstanding repair bill not provided for earlier.

(v) A contingent liability in respect of bills receivable, discounted with the bank has also materialised and had to be discharged for Rs 15,000.

(vi) Expenses of realisation amounting to Rs 3,000 were paid by Srijan.

Prepare Realisation Account, Partner's Capital Accounts and Bank Account.

Moli, Bhola and Raj were partners in a firm sharing profits and losses in the ratio of 3:3:4. Their partnership deed provided for the following:

(i) Interest on capital @ 5% p.a.

(ii) Interest on drawing @12% p.a.

(iii) Interest on partner's loan @6% p.a.

Moli was allowed an annual salar of Rs 4,000. Bhola was allowed a commission of 10% of net profit as shown by Profit and Loss Account and Raj was guaranteed a profit of Rs 1,50,000 after making all the adjustments as provided in the partnership agreement.

Their fixed capital were Moli - Rs 5,00,000; Bhola : Rs 8,00,000 and Raj Rs 4,00,000. On 1st April, 2016 Bhola extended a loan of Rs 1,00,000 to the firm. The net profit of the firm for the year ended 31st March , 2017 before interest on Bhola's loan was Rs 3,06,000. Prepare Profit and Loss Appropriation Account of Moli, Bhola and Raj for the year ended 31st March 2017, assuming that Bhola withdrew Rs 5,000 at the end of the end of each month, Moli withdrew Rs 10,000 at the end of each quarter and Raj withdrew Rs 40,000 at the end of each half year.

Q. Srijan, Raman and Manan were partners in a firm sharing profits and losses in the ratio of 2 : 2 : 1. On 31st, March, 2017 their Balance Sheet was as follows:

BALANCE SHEET OF SRIJAN, RAMAN AND MANAN as on 31st March, 2017
Liabilities		Amount (₹)	Assets	Amount (₹)
Capitals:			Capital: Manan	10,000
Srijan	2,00,000		Plant	2,20,000
Raman	1,50,000	3,50,000	Investments	70,000
Creditors		75,000	Stock	50,000
Bills Payable		40,000	Debtors	60,000
Outstanding Salary		35,000	Bank	10,000
			Profit and Loss Account	80,000
		5,00,000		5,00,000

On the above date they decided to dissolve the firm.
(a) Srijan was appointed to realise the assets and discharge the liabilities. Srijan was to receive 5% commission on sale of assets (except cash) and was to bear all expenses of realisation.
(b)

Assets were realised as follows:	₹
Plant	85,000
Stock	33,000
Debtors	47,000

(c) Investments were realised at 95% of the book value.
(d) The firm had to pay ₹ 7,500 for an outstanding repair bill not provided for earlier.
(e) A contingent liabillity in respect of bills receivable, discounted with the bank had also materialised and had to be discharged for ₹ 15,000.
(f) Expenses of realisation amounting to ₹ 3,000 were paid by Srijan.
Prepare Realisation Account, Partners' Capital Accounts and Bank Account.

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Balance Sheet of Sanjay, Tarun and Vineet as on December 31, 2017
Liabilities		Amount Rs	Assets	Amount Rs
Capitals:			Plant	90,000
Sanjay	1,00,000		Debtors	60,000
Tarun	1,00,000		Furniture	32,000
Vineet	70,000	2,70,000	Stock	60,000
Creditors		80,000	Investments	70,000
Bills payable		30,000	Bills receivable	36,000
			Cash in hand	32,000
		3,80,000		3,80,000

Books of Sanjay, Tarun and Vineet Realisation Account
Dr.						Cr.
Particulars		Amount Rs	Particulars		Amount Rs
Plant		90,000	Creditors		80,000
Debtors		60,000	Bills Payable		30,000
Furniture		32,000	Cash:
Stock		60,000	Plant	72,000
Investment		70,000	Debtors	54,000
Bills Receivable		36,000	Furniture	18,000
Cash :			Stock	54,000
Creditors	80,000		Investments	76,000
Bills Payable	30,000	1,10,000	Bills Receivable	31,000	3,05,000
Sanjay’s Capital A/c		18,300	Loss transferred to
(6% commission)			Sanjay’s Capital	30,650
			Tarun’s Capital A/c	20,433
			Vineet’s Capital A/c	10,217	61,300
		4,76,300			4,76,300

Partners’ Capital Account
Dr.								Cr.
Particulars	Sanjay	Tarun	Vineet	Particulars	Sanjay	Tarun	Vineet
Realisation (Loss)	30,650	20,433	10,217	Balance b/d	1,00,000	1,00,000	70,000
Cash	87,650	79,567	59,783	Realisation (commission)	18,300

	1,18,300	1,00,000	70,000		1,18,300	1,00,000	70,000

Cash Account
Dr.				Cr.
Particulars	Amount Rs	Particulars	Amount Rs
Balance b/d	32,000	Realisation	1,10,000
Realisation	3,05,000	Sanjay’s Capital A/c	87,650
		Tarun’s Capital A/c	79,567
		Vineet’s Capital A/c	59,783

	3,37,000		3,37,000