Question

PRACTICAL PROBLEMS

Mahesh, Suresh and Jayesh were partners of the firm. They decided to dissolve the firm on 31^st March, 2012. Their Balance Sheet as on that date was as under:

Balance Sheet as on 31st March, 2012
Liabilities	Amount Rs	Assets		Amount Rs
Creditors	18,000	Cash at Bank		9,600
Loan	4,500	Sundry Assets		51,000
Capitals		Debtors	72,600
Mahesh	82,500	Less: R.D.D.	3,600	69,000
Suresh	30,000	Stock		23,400
Jayesh	21,000	Furniture		3,000
	1,56,000			1,56,000

The firm was dissolved as follows:

1) Mahesh will accept furniture for Rs 2,000 and agreed accept the debtors of book value of Rs 60,000 at on agreed value of Rs 51,000.

2) Suresh will accept stock at an agreed value Rs 20,000, and Sundry Assets of Book value Rs 24,000 at Rs 23,500.

3) Jayesh will accept remaining Sundry Assets for Rs 25,000 He will further accept the liability of loan along with due interest at 12% p.a.

Interest for three months on this loan was outstanding and was not recorded in the books.

4) Expenses of dissolution were Rs 1,000 and outstanding expenses of Rs 1,200 were to be paid from the firm.

5) The remaining debtors were realised Rs 7,000.

Prepare:

1) Realisation A/c

2) Partner’s Capital A/c

3) Bank A/c

Answer 1

Realisation Account
Dr.	Cr.
Particulars			Amount Rs	Particulars		Amount Rs
Sundry Assets:				Sundry Liabilities:
Assets		51,000		Creditors	18,000
Debtors		72,600		Loan	4,500
Stock		23,400		Reserve for Doubtful debts	3,600	26,100
Furniture		3,000	1,50,000	Mahesh’s Capital A/c:
Bank A/c:				Furniture	2,000
Creditors		18,000		Debtors	51,000	53,000
Dissolution Expenses		1,000		Suresh’s Capital A/c:
Outstanding Expenses		1,200	20,200	Stock	20,000
				Sundry Assets	23,500	43,500
Jayesh’s Capital A/c (Loan with its 3 months outstanding Interest)			4,635	Jayesh’s Capital A/c (Sundry Assets)		25,000
				Bank A/c (Debtors)		7,000
				Loss transferred to:
				Mahesh’s Capital A/c	6,745
				Suresh’s Capital A/c	6,745
				Jayesh’s Capital A/c	6,745	20,235
			1,74,835			1,74,835

Partners’ Capital Accounts
Dr.	Cr.
Particulars		Mahesh	Suresh	Jayesh	Particulars	Mahesh	Suresh	Jayesh
Realisation A/c		53,000	43,500	25,000	Balance b/d	82,500	30,000	21,000
Realisation A/c (Loss)		6,745	6,745	6,745	Realisation A/c (Loan paid)			4,635
Bank A/c		22,755			Bank A/c		20,245	6,110
		82,500	50,245	31,745		82,500	50,245	31,745

Bank Account
Dr.	Cr.
Particulars			Amount Rs	Particulars	Amount Rs
Balance b/d			9,600	Realisation A/c (Liabilities)	20,200
Realisation A/c (Assets)			7,000	Mahesh’s Capital A/c	22,755
Capital A/cs:
Suresh		20,245
Jayesh		6,110	26,355
			42,955		42,955