Question

Anup and Sumit are equal partners in a firm. They decided to dissolve the partnership on December 31, 2017. When the balance sheet is as under:

Balance Sheet of Anup and Sumit as on December 31, 2017
Liabilities		Amount Rs	Assets	Amount Rs
Sundry Creditors		27,000	Cash at bank	11,000
Reserve fund		10,000	Sundry Debtors	12,000
Loan		40,000	Plants	47,000
Capital			Stock	42,000
Anup	60,000		Lease hold land	60,000
Sumit	60,000	1,20,000	Furniture	25,000
		1,97,000		1,97,000

The Assets were realised as follows:

	Rs
Lease hold land	72,000
Furniture	22,500
Stock	40,500
Plant	48,000
Sundry Debtors	10,500

The Creditors were paid Rs 25,500 in full settlement. Expenses of Realisation amount to Rs 2,500.

Prepare Realisation Account, Bank Account, Partners Capital Accounts to close the books of the firm.

Answer 1

Books of Anup and Sumit Realisation Account
Dr.							Cr.
Particulars			Amount Rs	Particulars		Amount Rs
Sundry Debtors			12,000	Sundry Creditors		27,000
Plants			47,000	Loan		40,000
Stock			42,000	Bank:
Lease hold land			60,000	Lease hold Land	72,000
Furniture			25,000	Furniture	22,500
Bank:				Stock	40,500
Creditors		25,500		Plant	48,000
Loan		40,000		Sundry Debtors	10,500	1,93,500
Expenses		2500	68,000
Profit transferred to
Anup’s Capital A/c		3,250
Sumit’s Capital A/c		3250	6,500
			2,60,500			2,60,500

Partners’ Capital Account
Dr.							Cr.
Particulars		Anup	Sumit	Particulars	Anup	Sumit
Bank		68,250	68,250	Balance b/d	60,000	60,000
				Reserve Fund	5,000	5,000
				Realisation	3,250	3,250
		68,250	68,250		68,250	68,250

Bank Account
Dr.					Cr.
Particulars		Amount Rs	Particulars	Amount Rs
Balance b/d		11,000	Realisation (Expenses and Liabilities)	68,000
Realisation (Assets )		1,93,500	Anup’s Capital A/c	68,250
			Sumit’s Capital A/c	68,250
		2,04,500		2,04,500