Question

Following is the Balance Sheet of Vishnu, Sanjiv and Sudhir as at 31st March, 2018:

Liabilities		Amount (₹)	Assets		Amount (₹)
Bills Payable		20,000	Cash		8,000
Creditors		18,000	Bills Receivable		12,000
Mrs. Vishnu's Loan		20,000	Stock		25,000
Outstanding Salary		5,000	Sundry Debtors	40,000
Profit and Loss A/c		10,000	Less: Provision for D. Debts	4,000	36,000
Workmen Compensation Reserve		15,000
Capital A/cs:			Land and Building		50,000
Vishnu	40,000		Furniture		10,000
Sanjiv	30,000		Computers		5,000
Sudhir	18,000	88,000	Investments		30,000
		1,76,000			1,76,000

Profit-sharing ratio of the partners is 5 : 3 : 2 . At the above date, the partners decided to dissolve the firm .
The assets were realised as follows:
Bill Receivable were realised at a discount of 5% . All Debtors were good. Stock realised ₹ 22,000. Land and Building realised 40% higher than the book value . Furniture was sold for ₹ 8,000 by auction and auctioneer's commission amounted to ₹ 500.
Computers were taken by Vishnu for ana greed valuation of ₹ 3,000. Investments were sold in the open market at a price of ₹ 45,000 , for which commission of ₹ 600 was paid to the broker.
Bills Payable were paid at full amount . Creditors , however, agreed to accept 10% less. All other liabilities were paid off at their book value.
The firm retrenched their employees three months before the dissolution of the firm and firm had to pay ₹ 20,000 as compensation.
Prepare Realisation Account , Partners' Capital Accounts and Cash Account.

Answer 1

Realisation Account
Dr.								Cr.
Particulars				Amount (₹)	Particulars		Amount (₹)
Bills Receivable				12,000	Provision for Doubtful Debts		4,000
Stock				25,000	Bills Payable		20,000
Sundry Debtors				40,000	Creditors
Land & Building				50,000	Mrs Vishnu’s Loan		20,000
Furniture				10,000	Outstanding Salary		5,000
Computers				5,000	Cash A/c
Investments				30,000	Bills Receivable	11,400
Cash A/c					Debtors	40,000
Bills Payable		20,000			Stock	22,000
Creditors		16,200			Land & Building	70,000
Mrs Vishnu’s Loan		20,000			Furniture	7,500
Outstanding Salary		5,000		61,200	Investments	44,400	1,95,300
Cash A/c (Retrenchment Compensation)				20,000	Vishnu’s Capital A/c (Computers)		3,000
Realisation Profit
Vishnu’s Capital A/c			6,050
Sanjiv’s Capital A/c			3,630
Sudhir’s Capital A/c			2,420	12,100
				2,65,300			2,65,300

Partners’ Capital Account
Dr.	Cr.
Particulars			Vishnu	Sanjiv	Sudhir	Particulars	Vishnu	Sanjiv	Sudhir
Realisation (Assets taken)			3,000			Balance b/d	40,000	30,000	18,000
Cash A/c			55,550	41,130	25,420	P&L A/c	5,000	3,000	2,000
						WCR	7,500	4,500	3,000
						Realisation A/c (Profit)	6,050	3,630	2,420
			58,550	41,130	25,420		58,550	41,130	25,420

Cash Account
Dr.					Cr.
Particulars		Amount (₹)	Particulars	Amount (₹)
Balance b/d		8,000	Realisation A/c (Liabilities)	81,200
Realisation A/c (Assets)		1,95,300	Vishnu’s Capital A/c	55,550
			Sanjiv’s Capital A/c	41,130
			Sudhir’s Capital A/c	25,420
		2,03,300		2,03,300