wiz-icon
MyQuestionIcon
MyQuestionIcon
1
You visited us 1 times! Enjoying our articles? Unlock Full Access!
Question

A and B are partners in a firm sharing profits and losses in the ratio of 3 : 2 . On 31st March, 2018, their Balance Sheet was as follows:

Liabilities

Assets

Creditors

38,000

Cash at Bank

11,500

Mrs. A's Loan 10,000 Stock 6,000
B's Loan 15,000 Debtors 19,000
Reserve 5,000 Furniture 4,000

A's Capital

10,000

Plant

28,000

B's Capital

8,000

18,000

Investments

10,000

Profit and LossA/C

7,500

86,000

86,000


The firm was dissolved on 31st March, 2018 and both the partners agreed to the following :
(a) A took Investments at an agreed value of ₹ 8,000. He also agreed to settle Mrs. A's Loan.
(b) Other assets realised as : Stock₹ 5,000; Debtors₹ 18,500; Furniture₹ 4,500; Plant₹ 25,000.
(c) Expenses of realisation came to ₹ 1,600.
(d) Creditors agreed to accept ₹ 37,000 in full settlement of their claims .
Prepare Realisation Account, Partners' Capital Accounts and Bank Account .

Open in App
Solution

Realisation Account

Dr.

Cr.

Particulars

Amount

Rs

Particulars

Amount

Rs

Stock

6,000

Creditors

38,000

Debtors

19,000

Mrs. A’s Loan

10,000

Furniture

4,000

Plant

28,000

A’s Capital A/c (Investments)

8,000

Investments

10,000

Bank A/c:

A’s Capital A/c (Mrs. A’s loan)

10,000

Stock

5,000

Bank A/c :

Debtors

18,500

Expenses

1,600

Furniture

4,500

Creditors

37,000

38,600

Plant

25,000

53,000

Loss transferred to:

A’s Capital A/c

3,960

B’s Capital A/c

2,640

6,600

1,15,600

1,15,600

Partners’ Capital Accounts

Dr.

Cr.

Particulars

A

B

Particulars

A

B

Realisation (loss)

3,960

2,640

Balance b/d

10,000

8,000

Realisation A/c

8,000

Reserve A/c

3,000

2,000

Profit and Loss A/c

4,500

3,000

Realisation A/c

10,000

Bank A/c

6,540

4,360

23,000

10,000

23,000

10,000

B’s Loan Account

Dr.

Cr.

Particulars

Amount

Rs

Particulars

Amount

Rs

Balance b/d

15,000

Bank A/c

15,000

15,000

15,000

Bank Account

Dr.

Cr.

Particulars

Amount

Rs

Particulars

Amount

Rs

Balance b/d

11,500

Realisation A/c

38,600

Realisation A/c

53,000

A’s Capital A/c

6,540

B’s Capital A/c

4,360

B’s Loan A/c

15,000

64,500

64,500


flag
Suggest Corrections
thumbs-up
2
similar_icon
Similar questions
Q.

Surjit and Rahi were sharing profits (losses) in the ratio of 3:2, their Balance Sheet as on March 31, 2017 is as follows:

Balance Sheet of Surjit and Rahi as on March 31, 2017

Liabilities

Amount

Rs

Assets

Amount

Rs

Creditors

38,000

Bank

11,500

Mrs. Surjit loan

10,000

Stock

6,000

Reserve

15,000

Debtors

19,000

Rahi’s loan

5,000

Furniture

4,000

Capital’s:

Plant

28,000

Surjit

10,000

Investment

10,000

Rahi

8,000

Profit and Loss

7,500

86,000

86,000

The firm was dissolved on March 31, 2017 on the following terms:

1. Surjit agreed to take the investments at Rs 8,000 and to pay Mrs. Surjit’s loan.

2. Other assets were realised as follows:

Stock

Rs

5,000

Debtors

Rs

18,500

Furniture

Rs

4,500

Plant

Rs

25,000

3. Expenses on Realisation amounted to Rs 1,600.

4. Creditors agreed to accept Rs 37,000 as a final settlement.

You are required to prepare Realisation Account, Partners’ Capital Account and Bank Account.

View More
Join BYJU'S Learning Program
similar_icon
Related Videos
thumbnail
lock
Undersubscription
ACCOUNTANCY
Watch in App
Join BYJU'S Learning Program
CrossIcon