Question

Balance Sheet of P, Q and R as at 31st March, 2018, who were sharing profits in the ratio of 5 : 3 : 1 , was:

Liabilities		Amount (₹)	Assets		Amount (₹)
Bills Payable		40,000	Cash at Bank		40,000
Loan from Bank		30,000	Stock		19,000
Reserve Fund		9,000	Sundry Debtors	42,000
Capital A/cs:		5,800	Less: Provision for D. Debts	2,000	40,000
P	44,000
Q	36,000		Building		40,000
R	20,000	1,00,000	Plant and Machinery		40,000
		1,79,000			1,79,000

The partners dissolved the business. Assets realised$—$Stock ₹ 23,400; Debtors 50%; Fixed Assets 10% less than their book value . Bills Payable were settled for ₹ 32,000. There was an Outstanding Bill of Electricity ₹ 800 which was paid off. Realisation expenses ₹ 1,250 were also paid.
Prepare Realisation Account , Partner's Capital Accounts and Bank Account .

Answer 1

Realisation Account
Dr.						Cr.
Particulars			Amount Rs	Particulars			Amount Rs
Building			40,000	Provision for Doubtful Debts			2,000
Plant and machinery			40,000	Bills Payable			40,000
Stock			19,000	Loan from Bank			30,000
Sundry Debtors			42,000
Bank A/c:				Bank A/c:
Bills Payable		32,000		Stock	23,400
Outstanding Bill		800		Debtors	21,000
Expenses		1,250		Building	36,000
Loan from Bank		30,000	64,050	Plant and Machinery	36,000		1,16,400
				Loss transferred to:
				P’s Capital A/c	9,250
				Q’s Capital A/c	5,550
				RCapital A/c	1,850		16,650
			2,05,050				2,05,050

Partners’ Capital Accounts
Dr.									Cr.
Particulars		P	Q	R	Particulars	P	Q	R
Realisation A/c (Loss)		9,250	5,550	1,850	Balance b/d	44,000	36,000	20,000
					Reserve Fund	5,000	3,000	1,000
Bank A/c		39,750	33,450	19,150
		49,000	39,000	21,000		49,000	39,000	21,000

Bank Account
Dr.					Cr.
Particulars		Amount Rs	Particulars	Amount Rs
Balance b/d		40,000	Realisation A/c	64,050
Realisation A/c		1,16,400	P’s Capital A/c	39,750
			Q’s Capital A/c	33,450
			R’s Capital A/c	19,150
		1,56,400		1,56,400