Srijan, Raman and Manan were partners in a firm sharing profits and losses in the ratio of 2 : 2 : 1. On 31st, March, 2017 their Balance Sheet was as follows:

BALANCE SHEET OF SRIJAN, RAMAN AND MANAN as on 31st March, 2017

Liabilities Amount
(₹) Assets Amount
(₹)

Capitals: Capital: Manan 10,000

Srijan 2,00,000 Plant 2,20,000

Raman 1,50,000 3,50,000 Investments 70,000

Creditors 75,000 Stock 50,000

Bills Payable 40,000 Debtors 60,000

Outstanding Salary 35,000 Bank 10,000

Profit and Loss Account 80,000

5,00,000 5,00,000

On the above date they decided to dissolve the firm.
(a) Srijan was appointed to realise the assets and discharge the liabilities. Srijan was to receive 5% commission on sale of assets (except cash) and was to bear all expenses of realisation.
(b)

Assets were realised as follows: ₹

Plant 85,000

Stock 33,000

Debtors 47,000

(c) Investments were realised at 95% of the book value.
(d) The firm had to pay ₹ 7,500 for an outstanding repair bill not provided for earlier.
(e) A contingent liabillity in respect of bills receivable, discounted with the bank had also materialised and had to be discharged for ₹ 15,000.
(f) Expenses of realisation amounting to ₹ 3,000 were paid by Srijan.
Prepare Realisation Account, Partners' Capital Accounts and Bank Account.

BALANCE SHEET OF SRIJAN, RAMAN AND MANAN as on 31st March, 2017
Liabilities	Amount (₹)	Assets	Amount (₹)
Capitals:		Capital: Manan	10,000
Srijan	2,00,000		Plant	2,20,000
Raman	1,50,000	3,50,000	Investments	70,000
Creditors		75,000	Stock	50,000
Bills Payable		40,000	Debtors	60,000
Outstanding Salary		35,000	Bank	10,000
			Profit and Loss Account	80,000
		5,00,000		5,00,000

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Solution

Dr.
Realisation A/c
Cr.

Particulars

Amount

(₹)

Particulars

Amount

(₹)

To Plant
2,20,000
By Creditors
75,000

To Investments
70,000
By Bills Payable
40,000

To Stock
50,000
By Outstanding Salary
35,000

To Debtors
60,000

To Srijan’s Capital A/c (Commission)
11,575
By Bank A/c:

To Bank A/c:

Investments
66,500

Outstanding Bill Repair
7,500

Plant
85,000

Contingent liability against bills payable
15,000

Stock
33,000

Creditors
75,000

Debtors
47,000

2,31,500

Bills Payable
40,000

Outstanding Salary
35,000

1,72,500
By Loss on Realisation transferred to:

Srijan’s Capital A/c
81,030

Raman’s Capital A/c
81,030

Manan’s Capital A/c
40,515

2,02,575

5,84,075

5,84,075

Dr.
Partner’s Capital A/c
Cr.

Particulars

Srijan

(₹)

Raman

(₹)

Manan

(₹)

Particulars

Srijan

(₹)

Raman

(₹)

Manan

(₹)

To balance b/d

10,000
By balance b/d
2,00,000

1,50,000

To Realisation A/c (Loss)
81,030

81,030

40,515
By Realisation A/c (Commission)
11,575

To Profit & Loss A/c
32,000

32,000

16,000

To Bank A/c (Final Payment)
98,545

36,970

–
By Bank A/c

66,515

2,11,575

1,50,000

66,515

2,11,575

1,50,000

66,515

Dr.
Bank A/c
Cr.

Particulars

Amount

(₹)

Particulars

Amount

(₹)

To balance b/d
10,000
By Srijan’s Capital A/c
98,545

To Realisation A/c (Asset Realised)
2,31,500
By Raman’s Capital A/c
36,970

To Manan’s Capital A/c
66,515
By Realisation A/c (Liabilities Paid)
1,72,500

3,08,015

3,08,015

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Similar questions

Srijan, Raman and Manan were partners in a firm sharing profits and losses in the ratio of 2:2:1. On 31st March, 2017 their Balance Sheet was as follows:

BALANCE SHEET OF SRIJAN, RAMAN AND MANAN
as on 31-03-2017
$\begin{matrix} Liabilities & Amount & Assets & Amount (R s) & (R s) Capitals : & Capital : Srijan 2, 00, 000 & Manan & 10, 000 Raman 1, 50, 000 - -------- - & 3, 50, 000 & Plant & 2, 20, 000 Creditors & 75, 000 & Investments & 70, 000 Bills payable & 40, 000 & Stock & 50, 000 Outstanding Salary & 35, 000 & Debtors & 60, 000 Bank & 10, 000 Profit and Loss & 80, 000 Total & 5, 00, 000 & Total & 5, 00, 000 \end{matrix}$

On the above date they decided to dissolve the firm:

(i) Srijan was appointed to realise the assets and discharge the liabilities. Srijan was to receive 5% commission on sale of assets (except cash) and was to bear all expenses of realisation.

(ii) Assets were realised as follows : Plant Rs 85,000; Stock Rs 33,000; Debtors Rs 47,000.

(iii) Investments were realised at 95% of the book value.

(iv) The firm had to pay Rs 7,500 for an outstanding repair bill not provided for earlier.

(v) A contingent liability in respect of bills receivable, discounted with the bank has also materialised and had to be discharged for Rs 15,000.

(vi) Expenses of realisation amounting to Rs 3,000 were paid by Srijan.

Prepare Realisation Account, Partner's Capital Accounts and Bank Account.

Moli, Bhola and Raj were partners in a firm sharing profits and losses in the ratio of 3:3:4. Their partnership deed provided for the following:

(i) Interest on capital @ 5% p.a.

(ii) Interest on drawing @12% p.a.

(iii) Interest on partner's loan @6% p.a.

Moli was allowed an annual salar of Rs 4,000. Bhola was allowed a commission of 10% of net profit as shown by Profit and Loss Account and Raj was guaranteed a profit of Rs 1,50,000 after making all the adjustments as provided in the partnership agreement.

Their fixed capital were Moli - Rs 5,00,000; Bhola : Rs 8,00,000 and Raj Rs 4,00,000. On 1st April, 2016 Bhola extended a loan of Rs 1,00,000 to the firm. The net profit of the firm for the year ended 31st March , 2017 before interest on Bhola's loan was Rs 3,06,000. Prepare Profit and Loss Appropriation Account of Moli, Bhola and Raj for the year ended 31st March 2017, assuming that Bhola withdrew Rs 5,000 at the end of the end of each month, Moli withdrew Rs 10,000 at the end of each quarter and Raj withdrew Rs 40,000 at the end of each half year.

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.

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. Anju, Manju and Sanju were partners in a firm sharing profits in the ratio of 2 : 2 : 1 . On 31st March, 2018, their Balance Sheet was:



Liabilities		₹	Assets	₹
Creditors		50,000	Cash	60,000
Bank Loan		35,000	Debtors	75,000
Employees Provident Fund		15,000	Stock	40,000
Investments Fluctuation Reserve		10,000	Investments	20,000
Commission Received in Advance		8,000	Plant	50,000
Capital A/cs:			Profit and Loss A/c	3,000
Anju	50,000
Manju	50,000
Sanju	30,000	1,30,000
		2,48,000		2,48,000

On this date , the firm was dissolved . Anju was appointed to realise the assets . Anju was to receive 5% commission on the sale of assets (except cash) and was to bear all expenses of realisation .
Anju realised the assets as follows : Debtors ₹ 60,000; Stock ₹ 35,500; Investments ₹ 16,000; Plant 90% of the book value . Expenses of Realisation amounted to ₹ 7,500. Commission received in advance was returned to customers after deducting ₹ 3,000.
Firm had to pay ₹ 8,500 for Outstanding Salary, not provided for earlier , Compensation paid to employees amounted to ₹ 17,000. This liability was not provided for in the above Balance Sheet . ₹ 20,000 had to be paid for Employees' Provident Fund.
Prepare Realisation Account , Capital Accounts of Partners and Cash Account.

Rita, Geeta and Ashish were partners in a firm sharing profits/ losses in the ratio 3 : 2 : 1. On March 31, 2012 their balance sheet was as follows.

$\begin{matrix} Capital and Liabilities & Amt. & Assets & Amt. Capitals: & Cash & 22, 500 Rita & 80, 000 & Debtors & 52, 300 Geeta & 50, 000 & Stock & 36, 000 Ashish & 30, 000 - ------ - & 1, 60, 000 & Investments & 69, 000 Creditors & 65, 000 & Plant & 91, 200 Bills Payable & 26, 000 General Reserve & 20, 000 - -------- - & - -------- - 2, 71, 000 - -------- - & 2, 71, 000 - -------- - \end{matrix}$

On the 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:
Debtors Rs. 30,000
Stock Rs. 26,000
Plant Rs. 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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Assets were realised as follows:	₹
Plant	85,000
Stock	33,000
Debtors	47,000

Dr.	Realisation A/c						Cr.
Particulars			Amount (₹)	Particulars		Amount (₹)
To Plant			2,20,000	By Creditors		75,000
To Investments			70,000	By Bills Payable		40,000
To Stock			50,000	By Outstanding Salary		35,000
To Debtors			60,000

To Srijan’s Capital A/c (Commission)			11,575	By Bank A/c:
To Bank A/c:				Investments	66,500
Outstanding Bill Repair		7,500		Plant	85,000
Contingent liability against bills payable		15,000		Stock	33,000
Creditors		75,000		Debtors	47,000	2,31,500
Bills Payable		40,000
Outstanding Salary		35,000	1,72,500	By Loss on Realisation transferred to:
				Srijan’s Capital A/c	81,030
				Raman’s Capital A/c	81,030
				Manan’s Capital A/c	40,515	2,02,575

			5,84,075			5,84,075

Dr.	Partner’s Capital A/c								Cr.
Particulars		Srijan (₹)	Raman (₹)	Manan (₹)	Particulars	Srijan (₹)	Raman (₹)	Manan (₹)
To balance b/d				10,000	By balance b/d	2,00,000	1,50,000
To Realisation A/c (Loss)		81,030	81,030	40,515	By Realisation A/c (Commission)	11,575
To Profit & Loss A/c		32,000	32,000	16,000
To Bank A/c (Final Payment)		98,545	36,970	–	By Bank A/c			66,515

		2,11,575	1,50,000	66,515		2,11,575	1,50,000	66,515

Dr.	Bank A/c				Cr.
Particulars		Amount (₹)	Particulars	Amount (₹)
To balance b/d		10,000	By Srijan’s Capital A/c	98,545
To Realisation A/c (Asset Realised)		2,31,500	By Raman’s Capital A/c	36,970
To Manan’s Capital A/c		66,515	By Realisation A/c (Liabilities Paid)	1,72,500

		3,08,015		3,08,015