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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.


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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