Shilpa, Meena and Nanda decided to dissolve their partnership on 31st March, 2018. Their profit-sharing ratio was 3 : 2 : 1 and their Balance Sheet was as under:

Liabilities

₹

Assets

₹

Capital A/cs:

Land

81,000

Shilpa

80,000

Stock

56,760

Meena

40,000

1,20,000

Debtors

18,600

Bank Loan

20,000

Nanda's Capital

23,000

Creditors 37,000 Cash 10,840

Provision For Doubtful Debts 1,200

General Reserve 12,000

1,90,200

1,90,200

It is agreed as follows:
The stock of value of ₹ 41,660 are taken over by Shilpa for ₹ 35,000 and she agreed to discharge bank loan. The remaining stock was sold at ₹ 14,000 and debtors amounting to ₹ 10,000 realised ₹ 8,000. Land is sold for ₹ 1,10,000. The remaining debtors realised 50% at their book value . Cost of realisation amounted to ₹ 1,200 . There was a typewriter not recorded in the books worth of ₹ 6,000 which were taken over by one of the Creditors at this value . Prepare Realisation Account , Partners' Capital Accounts, and Cash Account to close the books of the firm.

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Solution

Realisation Account

Dr.

Cr.

Particulars

Amount

(₹)

Particulars

Amount

(₹)

Land

81,000

Bank Loan

20,000

Stock

56,760

Creditors

37000

Debtors

18,600

Provision for doubtful debts

1,200

Shilpa’s Capital A/c

20,000

Shilpa’s Capital A/c (Stock)

35,000

Cash:

Cash:

Creditors

31000

Stock

14000

Realisation Expenses

1,200

32200

Debtors

12300

Realisation Profit

Land

1,10,000

1,36,300

Shilpa’s Capital A/c

10,470

Meena’s Capital A/c

6,980

Nanda’s Capital A/c

3,490

20,940

2,29,500

2,29,500

Partners’ Capital Account

Dr.

Cr.

Particulars

Shilpa

Meena

Nanda

Particulars

Shilpa

Meena

Nanda

Balance b/d

–

–

23,000

Balance b/d

80,000

40,000

–

Realisation

35,000

General Reserve

6,000

4,000

2,000

(Stock)

Realisation

20,000

Cash

81,470

50,980

(Bank Loan)

Realisation (Profit)

10,470

6,980

3,490

Cash

17,510

1,16,470

50,980

23,000

1,16,470

50,980

23,000

Cash Account

Dr.

Cr.

Particulars

Amount

(₹)

Particulars

Amount

(₹)

Balance b/d

10,840

Realisation (Expenses)

32,200

Realisation (Assets)

1,36,300

Shilpa’s Capital A/c

81,470

Nanda’s Capital A/c

17,510

Meena’s Capital A/c

50,980

1,64,650

1,64,650

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Similar questions

Q. Shilpa, Meena and Nanda decided to dissolve their partnership on 31st March, 2019. Their profit-sharing ratio was 3 : 2 : 1 and their Balance Sheet was as under:

BALANCE SHEET OF SHILPA, MEENA AND NANDA as at 31st March, 2019
Liabilities		₹	Assets	₹
Capital A/cs:			Land	81,000
Shilpa	80,000		Stock	56,760
Meena	40,000	1,20,000	Debtors	18,600
Bank Loan		20,000	Nanda's Capital	23,000
Creditors		37,000	Cash	10,840
Provision For Doubtful Debts		1,200
General Reserve		12,000

		1,90,200		1,90,200

It is agreed as follows:
The stock of value of ₹ 41,660 are taken over by Shilpa for ₹ 35,000 and she agreed to discharge bank loan. The remaining stock was sold at ₹ 14,000 and debtors amounting to ₹ 10,000 realised ₹ 8,000. Land is sold for ₹ 1,10,000. The remaining debtors realised 50% at their book value. Cost of realisation amounted to ₹ 1,200. There was a typewriter not recorded in the books worth of ₹ 6,000 which were taken over by one of the Creditors at this value. Prepare Realisation Account, Partners' Capital Accounts, and Cash Account to Close the books of the firm.

Shilpa, Meena and Nanda decided to dissolve their partnership on March 31, 2006. Their profit sharing ratio was 3: 2: 1 and their balance sheet was as under:
Balance Sheet of Shilpa, Meena and Nanda
as on March 31, 2006
$\begin{matrix} Capital and Liabilities & Amt. & Assets & Amt. Capitals: & Land & 81, 000 Shilpa & 80, 000 & Stock & 56, 760 Meena & 40, 000 & Debtors & 18, 600 Bank loan & 20, 000 & Nanda's Capital & 23, 000 Creditors & 37, 000 & Cash & 10, 840 Provision for doubtful debts & 1, 200 General Reserve & 12, 000 - ----- - & - ----- - 1, 90, 200 & 1, 90, 200 - ----- - & - ----- - \end{matrix}$

The stock of value of Rs. 41,660 are taken over by Shilpa for Rs. 35,000 and she agreed to discharge bank loan. The remaining stock was sold at Rs. 14,000 and debtors amounting to Rs. 10,000 realised Rs. 8,000. Land is sold for Rs. 1,10,000. The remaining debtors realised 50% at their book value. Cost of realisation amounted to Rs. 1,200.There was typewriter not recorded in the books worth Rs. 6,000, which were taken over by one of the creditors at this value.
Prepare realisation account.

Shilpa, Meena and Nanda decided to dissolve their partnership on March 31,2017. Their profit sharing ratio was 3:2:1 and their Balance Sheet was as under:

Balance Sheet of Shilpa, Meena and Nanda as on March 31, 2017
Liabilities	Amount Rs	Assets	Amount Rs
Capitals:		Land	81,000
Shilpa	80,000	Stock	56,760
Meena	40,000	Debtors	18,600
Bank loan	20,000	Nanda’s Capital Account	23,000
Creditors	37,000	Cash	10,840
Provision for doubtful debts	1,200
General Reserve	12,000
	1,90,200		1,90,200

The stock of value of Rs 41,660 are taken over by Shilpa for Rs 35,000 and she agreed to discharge bank loan. The remaining stock was sold at Rs 14,000 and debtors amounting to Rs 10,000 realised Rs 8,000. land is sold for Rs 1,10,000. The remaining debtors realised 50% at their book value. Cost of Realisation amounted to Rs 1,200. There was a typewriter not recorded in the books worth Rs 6,000 which were taken over by one of the Creditors at this value. Prepare Realisation Account.

Q. A and B are partners in a firm sharing profits and losses in the ratio of 2 : 1 . On 31st March, 2018 , their Balance Sheet was:


Liabilities	₹	Assets		₹
Bank Overdraft	30,000	Cash in Hand		6,000
General Reserve	56,000	Bank Balance		10,000
Investments Fluctuation Reserve	20,000	Sundry Debtors	26,000
A's Loan	34,000	Less: Provision for Doubtful Debtors	2,000	24,000
Capital A/c:		Investments		40,000
A	50,000	Stock		10,000
		Furniture		10,000
		Building		60,000
		B's Capital		30,000
	1,90,000			1,90,000

On that date , the partners decide to dissolve the firm . A took over Investments at an agreed valuation of ₹ 35,000. Other assets were realised as follows:
Sundry Debtors: Full amount . The firm could realise Stock at 15% less and Furniture at 20% less than the book value . Building was sold at ₹ 1,00,000.
Compensation to employees paid by the firm amounted to ₹ 10,000. This liability was not provided for in the above Balance Sheet.
You are required to close the books of the firm by preparing Realisation Account , Partners' Capital Accounts and Bank Account .

Q. A, B and C were partners sharing profits in the ratio of 2 : 2 : 1 . They decided to dissolve their firm on 31st March, 2018 when the Balance Sheet was :

Liabilities		Amount (₹)	Assets		Amount (₹)
Creditors		40,000	Cash		40,000
Bills Payable		46,000	Debtors	70,000
Employees’ Provident Fund		32,000	Furniture	6,000	64,000
Mrs. A’s Loan		38,000	Stock		50,000
C’s Loan		30,000	Investments		60,000
Investments Fluctuation Reserve		16,000	Furniture		42,000
Capitals A/cs:			Machinery		1,36,000
A	1,20,000		Land		1,00,000
B	1,00,000		Goodwill		30,000
C	1,00,000	3,20,000

		5,22,000			5,22,000

Following transactions took place :
(a) A took over Stock at ₹ 36,000. He also took over his wife's loan.
(b) B took over half of Debtors at ₹ 28,000.
(c) C took over Investments at ₹ 54,000 and half of Creditors at their book value.
(d) Remaining Debtors realised 60% of their book value . Furniture sold for ₹ 30,000; Machinery ₹ 82,000 and Land ₹ 1,20,000.
(e) An unrecorded asset was sold for ₹ 22,000.
(f) Realisation expenses amounted to ₹ 4,000.
Prepare necessary Ledger Accounts to close the books of the firm.

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Realisation Account
Dr.						Cr.
Particulars		Amount (₹)	Particulars		Amount (₹)
Land		81,000	Bank Loan		20,000
Stock		56,760	Creditors		37000
Debtors		18,600	Provision for doubtful debts		1,200
Shilpa’s Capital A/c		20,000	Shilpa’s Capital A/c (Stock)		35,000
Cash:			Cash:
Creditors	31000		Stock	14000
Realisation Expenses	1,200	32200	Debtors	12300
Realisation Profit			Land	1,10,000	1,36,300
Shilpa’s Capital A/c	10,470
Meena’s Capital A/c	6,980
Nanda’s Capital A/c	3,490	20,940
		2,29,500			2,29,500

Partners’ Capital Account
Dr.						Cr.
Particulars	Shilpa	Meena	Nanda	Particulars	Shilpa	Meena	Nanda
Balance b/d	–	–	23,000	Balance b/d	80,000	40,000	–
Realisation	35,000			General Reserve	6,000	4,000	2,000
(Stock)				Realisation	20,000
Cash	81,470	50,980		(Bank Loan)
				Realisation (Profit)	10,470	6,980	3,490
				Cash			17,510
	1,16,470	50,980	23,000		1,16,470	50,980	23,000

Cash Account
Dr.				Cr.
Particulars	Amount (₹)	Particulars	Amount (₹)
Balance b/d	10,840	Realisation (Expenses)	32,200
Realisation (Assets)	1,36,300	Shilpa’s Capital A/c	81,470
Nanda’s Capital A/c	17,510	Meena’s Capital A/c	50,980

	1,64,650		1,64,650