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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.


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
       

Accountancy
TS Grewal Vol. I (2018)
Standard XII

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