The following is the Balance sheet of Tanu and Manu, who shares profit and losses in the ratio of 5:3, On December 31,2017:

Balance Sheet of Tanu and Manu as on December 31, 2017

Liabilities

Amount

Rs

Assets

Amount

Rs

Sundry Creditors

62,000

Cash at Bank

16,000

Bills Payable

32,000

Sundry Debtors

55,000

Bank Loan

50,000

Stock

75,000

Reserve fund

16,000

Motor car

90,000

Capital:

Machinery

45,000

Tanu

1,10,000

Investment

70,000

Manu

90,000

2,00,000

Fixtures

9,000

3,60,000

3,60,000

On the above date the firm is dissolved and the following agreement was made: Tanu agree to pay the bank loan and took away the sundry debtors. Sundry creditors accepts stock and paid Rs 10,000 to the firm. Machinery is taken over by Manu for Rs 40,000 and agreed to pay of bills payable at a discount of 5%.. Motor car was taken over by Tanu for Rs 60,000. Investment realised Rs 76,000 and fixtures Rs 4,000. The expenses of dissolution amounted to Rs 2,200.

Prepare Realisation Account, Bank Account and Partners Capital Accounts.

Open in App

Solution

Books of Tanu and Manu

Realisation Account

Dr.

Cr.

Particulars

Amount

Rs

Particulars

Amount

Rs

Sundry Debtors

55,000

Sundry Creditors

62,000

Stock

75,000

Bills Payable

32,000

Motor Car

90,000

Bank Loan

50,000

Machinery

45,000

Tanu’s Capital A/c:

Investment

70,000

Sundry Debtors

55,000

Fixtures

9,000

Motor Car

60,000

1,15,000

Manu’s Capital A/c (Bills Payable)

30,400

Bank:

Bank (Expenses)

2,200

Stock

10,000

Tanu's Capital A/c (Bank Loan)

50000

Investment

76,000

Fixtures

4,000

90,000

Manu’s Capital (Machinery)

40,000

Loss transferred to

Manu’s Capital A/c

23,500

Manu’s Capital A/c

14,100

37,600

4,26,600

4,26,600

Partners' Capital Account

Dr.

Cr.

Particulars

Tanu

Manu

Particulars

Tanu

Manu

Realisation (Assets taken)

1,15,000

40,000

Balance b/d

1,10,000

90,000

Realisation (Loss)

23,500

14,100

Realisation (Liabilities)

50,000

30,400

Bank

31,500

72,300

Reserve Fund

10,000

6,000

1,70,000

1,26,400

1,70,000

1,26,400

Bank Account

Dr.

Cr.

Particulars

Amount

Rs

Particulars

Amount

Rs

Balance b/d

16,000

Realisation (Expenses)

2,200

Realisation (Assets)

90,000

Tanu’s Capital A/c

31,500

Manu’s Capital A/c

72,300

1,06,000

1,06,000

Suggest Corrections

Similar questions

The following is the balance sheet of Tanu and Manu, who shares profit and losses in the ratio of 5:3. On December 31, 2012
$\begin{matrix} Balance Sheet of Tanu and Manu as on December 31, 2012 \end{matrix}$

$\begin{matrix} Capital and Liabilities & Amt. (Rs.) & Assets & Amt. (Rs.) Sundry Creditors & 62, 000 & Cash at Bank & 16, 000 Bills Payable & 32, 000 & Sundry Debtors & 55, 000 Bank Loan & 50, 000 & Stock & 75, 000 Reserve Fund & 16, 000 & Motor Car & 90, 000 Capitals: & Machinery & 45, 000 Tanu & 1, 10, 000 & Investment & 70, 000 Manu & 90, 000 - ------ - & 2, 00, 000 - -------- - & Fixtures & 9, 000 - ---- - 3, 60, 000 & 3, 60, 000 \end{matrix}$
On the above date, the firm is dissolved and the following agreement was made, Tanu agree to pay the bank loan and took away the sundry debtors. Sundry creditors accepts stock and paid Rs. 10,000 to the firm. machinery is taken over by Manu for Rs. 40,000 and agreed to pay of bills payable at a discount of 5%. Motor Car was taken over by Tanu for Rs. 60,000, Investment realised Rs. 76,000 and fixtures Rs. 4,000.
The expenses of dissolution amounted to Rs. 2,200.
Prepare realisation account, bank account and partners' capital account.

Ashu and Harish are partners sharing profit and losses as 3:2. They decided to dissolve the firm on December 31, 2017. Their balance sheet on the above date was:

Balance Sheet of Ashu and Harish as on December 31, 2017
Liabilities		Amount Rs	Assets	Amount Rs
Capitals:			Building	80,000
Ashu	1,08,000		Machinery	70,000
Harish	54,000	1,62,000	Furniture	14,000
Creditors		88,000	Stock	20,000
Bank overdraft		50,000	Investments	60,000
			Debtors	48,000
			Cash in hand	8,000
		3,00,000		3,00,000

Ashu is to take over the building at Rs 95,000 and Machinery and Furniture is take over by Harish at value of Rs 80,000. Ashu agreed to pay Creditor and Harish agreed to meet Bank overdraft. Stock and Investments are taken by both partner in profit sharing ratio. Debtors realised for Rs 46,000, expenses of Realisation amounted to Rs 3,000. Prepare necessary ledger Account.

PRACTICAL PROBLEMS

Anil and Sunil were partners sharing profits and losses in the ratio of 3:2. Their Balance Sheet as on 31^st March, 2009.

Balance Sheet as on 31^st March, 2009
Liabilities	Amount Rs	Assets	Amount Rs
Capital Account		Bank	30,000
Anil	50,000	Stock	25,000
Sunil	30,000	Debtors	70,000
Current Account		Plant	45,000
Anil	15,000	Building	35,000
Sunil	10,000
Creditors	87,000
Bills payable	13,000
	2,05,000		2,05,000

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

1) Stock Rs 20,000, Debtors Rs 60,000, Plant Rs 40,000 and Building Rs 30,000.

2) Anil agreed to pay off the bills payable.

3) Creditors were paid in full.

4) Dissolution expenses were Rs 7,000.

Prepare:

(i) Realisation Account

(ii) Bank Account

(iii) Current Account and Capital Account of the partners.

Ashok, Babu and Chetan are in partnership sharing profit in the proportion of 1/2, 1/3, 1/6 respectively. They dissolve the partnership of the December 31, 2017, when the balance sheet of the firm as under:

Balance Sheet of Ashok, Babu and Chetan as on December 31, 2017
Liabilities		Amount Rs	Assets	Amount Rs
Sundry Creditors		20,000	Bank	7,500
Bills payable		25,500	Sundry Debtors	58,000
Babu’s loan		30,000	Stock	39,500
Capital’s:			Machinery	48,000
Ashok	70,000		Investment	42,000
Babu	55,000		Freehold Property	50,500
Chetan	27,000	1,52,000
Current Accounts :
Ashok	10,000
Babu	5,000
Chetan	3,000	18,000
		2,45,500		2,45,500

The Machinery was taken over by Babu for Rs 45,000, Ashok took over the Investment for Rs 40,000 and Freehold property was taken over by Chetan at Rs 55,000. The remaining Assets realised as follows: Sundry Debtors Rs 56,500 and Stock Rs 36,500. Sundry Creditors were settled at discount of 7%. A Office computer, not shown in the books of Accounts realised Rs 9,000. Realisation expenses amounted to Rs 3,000.

Prepare Realisation Account, Partners Capital Account, Bank Account.

The following is the Balance Sheet of Gupta and Sharma as on December 31,2017:

Balance Sheet of Gupta and Sharma as on December 31, 2017
Liabilities		Amount Rs	Assets	Amount Rs
Sundry Creditors		38,000	Cash at Bank	12,500
Mrs.Gupta’s loan		20,000	Sundry Debtors	55,000
Mrs.Sharma’s loan		30,000	Stock	44,000
Reserve fund		6,000	Bills Receivable	19,000
Provision of doubtful debts		4,000	Machinery	52,000
Capital			Investment	38,500
Gupta	90,000		Fixtures	27,000
Sharma	60,000	1,50,000
		2,48,000		2,48,000

The firm was dissolved on December 31, 2017 and asset realised and settlements of liabilities as follows:

(a) The Realisation of the assets were as follows:

	Rs
Sundry Debtors	52,000
Stock	42,000
Bills receivable	16,000
Machinery	49,000

(b) Investment was taken over by Gupta at agreed value of Rs 36,000 and agreed to pay of Mrs. Gupta’s loan.

(d) The Realisation expenses incurred amounted to Rs 1,200.

Journalise the entries to be made on the dissolution and prepare Realisation Account, Bank Account and Partners Capital Accounts.

Join BYJU'S Learning Program

Balance Sheet of Tanu and Manu as on December 31, 2017
Liabilities		Amount Rs	Assets	Amount Rs
Sundry Creditors		62,000	Cash at Bank	16,000
Bills Payable		32,000	Sundry Debtors	55,000
Bank Loan		50,000	Stock	75,000
Reserve fund		16,000	Motor car	90,000
Capital:			Machinery	45,000
Tanu	1,10,000		Investment	70,000
Manu	90,000	2,00,000	Fixtures	9,000
		3,60,000		3,60,000

Books of Tanu and Manu Realisation Account
Dr.					Cr.
Particulars	Amount Rs	Particulars		Amount Rs
Sundry Debtors	55,000	Sundry Creditors		62,000
Stock	75,000	Bills Payable		32,000
Motor Car	90,000	Bank Loan		50,000
Machinery	45,000	Tanu’s Capital A/c:
Investment	70,000	Sundry Debtors	55,000
Fixtures	9,000	Motor Car	60,000	1,15,000
Manu’s Capital A/c (Bills Payable)	30,400	Bank:
Bank (Expenses)	2,200	Stock	10,000
Tanu's Capital A/c (Bank Loan)	50000	Investment	76,000
		Fixtures	4,000	90,000
		Manu’s Capital (Machinery)		40,000
		Loss transferred to
		Manu’s Capital A/c	23,500
		Manu’s Capital A/c	14,100	37,600

	4,26,600			4,26,600

Partners' Capital Account
Dr.						Cr.
Particulars	Tanu	Manu	Particulars	Tanu	Manu
Realisation (Assets taken)	1,15,000	40,000	Balance b/d	1,10,000	90,000
Realisation (Loss)	23,500	14,100	Realisation (Liabilities)	50,000	30,400
Bank	31,500	72,300	Reserve Fund	10,000	6,000

	1,70,000	1,26,400		1,70,000	1,26,400

Bank Account
Dr.				Cr.
Particulars	Amount Rs	Particulars	Amount Rs
Balance b/d	16,000	Realisation (Expenses)	2,200
Realisation (Assets)	90,000	Tanu’s Capital A/c	31,500
		Manu’s Capital A/c	72,300

	1,06,000		1,06,000