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Question

Sanjay, Tarun and Vineet shared profit in the ratio of 3 : 2 : 1 on December 31, 2012 Their balance sheet was as follows:
Balance Sheet of Sanjay, Tarun and Vineet as on December 31 2013
Capital and LiabilitiesAmt.AssetsAmt.CapitalsPlant90,000Sanjay 1,00,000Debtors60,000TArun1,00,000Furniture32,000Vineet70,000––––––2,70,000Stock60,000Creditors80,000Investments70,000Bank Payable30,000Bills Receivable36,000Cash in Hand32,000 ––––– ––––3,80,0003,80,000 ––––– ––––
On this date, the firm was dissolved. Sanjay was appointed to realise the assets. Sanjay was to receive 6 % commission on the sale fo assets (except cash) and was to bear all expenses of realisation.
Sanjay realised the assets as follows:
Plant Rs. 72,000, Debtors Rs. 54,000, Furniture Rs. 18,000, Stock 90% of the book value. Investments Rs. 76,000 and biills receivable Rs. 31,000. Expenses of realisation amounted to 4,500. Prepare realisation account, capital account and cash account.

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Solution

Dr. Realisation Account Cr.
ParticularsAmt.ParticularsAmt.Plant90,000Creditors8,000Debtors60,000Bills Payable30,000Furniture32,000Bills Payable30,000Stock60,000Plant72,000Investment70,000Debtors54,000Bills Receivable36,000Furniture18,000CashStock54,000Creditors80,000Investments76,000Bills Payable30,000––––––1,10,000Bills Receivable31,000––––––3,05,000Sanjay's capital A/c18,300Loss Transferret to6%Commission on 305000Sanjay capital A/c30,650Tarun's Capital A/c20,433Vineet's Capital A/c10,217––––––61,300 –––– ––––4,76,3004,76,300 –––– ––––

Dr. Partners' Capital Account Cr.

ParticularsSanjayTarunVineet Particulars SanjayTarunVineetRealisation (Loss)30,65020,43310,217Balance b/d1,00,0001,00,00070,000Cash (Balancing Figure)87,65079,56759,783Realisation (Commission)18,300 ––– ––– ––– ––– ––– –––1,18,3001,00,00070,0001,18,3001,00,00070,000 ––– ––– ––– ––– ––– –––

Dr. Cash Account Cr.

ParticularsAmt.ParticularsAmt.Balance b/d32,000Realisation1,10,000Realisation3,05,000Sanjay's capital A/c87,650Tarun's capital A/c79,567Vineet's Capital A/c59,783 –––––– ––––––3,37,0003,37,000 –––––– –––––

Note:
Nothing will be done for expenses on realisation Rs. 4,500 as the time has paid 6% commission to Sanjay for dissolution and Rs. 4,500 expenses will be paid by him personally.


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Q.

Sanjay, Tarun and Vineet shared profit in the ratio of 3:2:1. On December 31,2017 their balance sheet was as follows:

Balance Sheet of Sanjay, Tarun and Vineet as on December 31, 2017

Liabilities

Amount

Rs

Assets

Amount

Rs

Capitals:

Plant

90,000

Sanjay

1,00,000

Debtors

60,000

Tarun

1,00,000

Furniture

32,000

Vineet

70,000

2,70,000

Stock

60,000

Creditors

80,000

Investments

70,000

Bills payable

30,000

Bills receivable

36,000

Cash in hand

32,000

3,80,000

3,80,000

On this date the firm was dissolved. Sanjay was appointed to realise the assets. Sanjay was to receive 6% commission on the sale of assets (except cash) and was to bear all expenses of Realisation.

Sanjay realised the assets as follows: Plant Rs 72,000, Debtors Rs 54,000, Furniture Rs 18,000, Stock 90% of the book value, Investments Rs 76,000 and Bills receivable Rs 31,000. Expenses of Realisation amounted to Rs 4,500.

Prepare Realisation Account, Capital Accounts and Cash Account

Q.

Rita, Geeta and Ashish were partners in a firm sharing profits/losses in the ratio of 3:2:1. On March 31, 2017 their balance sheet was as follows:

Liabilities

Amount

Rs

Assets

Amount

Rs

Capitals:

Cash

22,500

Rita

80,000

Debtors

52,300

Geeta

50,000

Stock

36,000

Ashish

30,000

1,60,000

Investments

69,000

Creditors

65,000

Plant

91,200

Bills payable

26,000

General reserve

20,000

2,71,000

2,71,000

On the date of above mentioned date the firm was dissolved:

1. Rita was appointed to realise the assets. Rita was to receive 5% commission on the rate of assets (except cash) and was to bear all expenses of Realisation,

2. Assets were realised as follows:

Rs

Debtors

30,000

Stock

26,000

Plant

42,750

3. Investments were realised at 85% of the book value,

4. Expenses of Realisation amounted to Rs 4,100,

5. Firm had to pay Rs 7,200 for outstanding salary not provided for earlier,

6. Contingent liability in respect of bills discounted with the bank was also materialised and paid off Rs 9,800,

Prepare Realisation Account, Capital Accounts of Partners’ and Cash Account.

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