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Question

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 31st March,2018 when the Balance Sheet of the firm as under:

Liabilities

Assets

Sundry Creditors

20,000

Bank

7,500
Bills Payable 25,500 Sundry Debtors 58,000
Babu's Loan 30,000 Stock 39,500
Capital A/cs: Machinery 48,000
Ashok
70,000 Investments

42,000
Babu 55,000 Freehold Property 50,500
Chetan 27,000 1,52,000
Capital A/cs:
Ashok 10,000
Babu 5,000
Chetan 3,000 18,000

2,45,000

2,45,500


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

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Solution

Realisation Account
Dr.
Cr.
Particulars
Amount
(₹)
Particulars
Amount
(₹)
Sundry Debtors
58,000
Sundry Creditors
20,000
Stock
39,500
Bills Payable
25,500
Machinery
48,000
Ashok’s Current A/c (Investment)
40,000
Investment
42,000
Babu’s Current A/c (Machinery)
45,000
Freehold property
50,500
Chetan’s Current A/c
55,000
Bank:
(Freehold property)
Sundry Creditors
18,600
Bank:
Bills Payable
25,500
Sundry Debtors
56,500
Expenses
3,000
47,100
Stock
36,500
Realisation Profit
Unrecorded Computer
9,000
1,02,000
Ashok’s Current A/c
1,200
Babu’s Current A/c
800
Chetan’s Current A/c
400
2,400
2,87,500
2,87,500
Partners' Current Account
Dr.
Cr.

Particulars

Ashok

Babu

Chetan

Particulars

Ashok

Babu

Chetan

Realisation
40,000
45,000
55,000
Balance b/d
10,000
5,000
3,000
(Assets taken)
Realisation (Profit)
1,200
800
400
Ashok's Capital A/c
28,800
Babu's Capital A/c
39200
Chetan's Capital A/c
51600
40,000
45,000
55,000
40,000
45,000
55,000
Partners' Capital Account
Dr.
Cr.
Particulars
Ashok
Babu
Chetan
Particulars
Ashok
Babu
Chetan
Ashok's Current A/c
28,800
Balance b/d
70,000
55,000
27,000
Babu's Current A/c
39200
Bank A/c
24,600
Chetan's Current A/c
51600
Bank A/c
41,200
15,800
70,000
55,000
51,600
70,000
55,000
51,600
Babu’s Loan A/c
Dr. Cr.
Particulars
Amount
(₹)
Particulars
Amount
(₹)
Bank A/c
30,000
Balance b/d
30,000
30,000
30,000
Bank Account
Dr.
Cr.
Particulars
Amount
(₹)
Particulars
Amount
(₹)
Balance b/d
7,500
Realisation A/c (Payment of Expenses& Liabilities)
47,100
Realisation A/c (Assets realised)
102,000
and Liabilities)
Chetan’s Capital A/c
24,600
Babu’s Loan
30,000
Ashok’s Capital A/c
41,200
Babu’s Capital A/c
15,800
1,34,100
1,34,100

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Q.

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.

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