The following is the balance sheet of Tanu and Manu, who shares profit and losses in the ratio of 5:3. On December 31, 2012
Balance Sheet of Tanu and Manu as on December 31, 2012
Capital and LiabilitiesAmt. (Rs.)AssetsAmt. (Rs.)Sundry Creditors62,000Cash at Bank16,000Bills Payable32,000Sundry Debtors55,000Bank Loan50,000Stock 75,000Reserve Fund16,000Motor Car90,000Capitals:Machinery45,000 Tanu1,10,000Investment70,000 Manu90,000––––––––2,00,000––––––––––Fixtures9,000––––––3,60,0003,60,000
On the above date, the firm is dissolved and the following agreement was made, Tanu agree to pay the bank loan and took away the sundry debtors. Sundry creditors accepts stock and paid Rs. 10,000 to the firm. machinery is taken over by Manu for Rs. 40,000 and agreed to pay of bills payable at a discount of 5%. Motor Car was taken over by Tanu for Rs. 60,000, Investment realised Rs. 76,000 and fixtures Rs. 4,000.
The expenses of dissolution amounted to Rs. 2,200.
Prepare realisation account, bank account and partners' capital account.
Dr Realisation Account Cr
ParticularsAmt.ParticularsAmt.Sundry Debtors55,000Sundry Creditors62,000Stock75,000Bills Payable32,000Motor Car90,000Bank Loan50,000Machinery45,000Tanu's Capital A/cInvestment70,000Sundry Debtors55,000Fixtures9,000Motor Car60,000––––––––1,15,000Manu's Capital A/c (Bills Payable)30,400BankBank (Expenses)2,200Stock (paid by creditors)10,000Tanu's Capital A/c (Bank Loan)50,000Investment76,000Fixture4,000––––––90,000Manu's Capital (Machinery)40,000Loss transferred to Tanu's Capital A/c23,500Manu's Capital A/c14,100––––––––37,600¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯4,26,600––––––––––¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯4,26,600––––––––––
Dr Partners' Capital Account Cr
ParticularsTanuManuParticularsTanuManuRealisation (Assets Taken)1,15,00040,000Balance b/d1,10,00090,000Realisation (Loss)23,50014,100Realisation (Liabilities)50,00030,400Bank (Balancing Figure)31,50072,300Realisation Fund10,0006,000 ––––––– ––––––– ––––––– –––––––1,70,0001,26,4001,70,0001,26,400
Dr Bank Account Cr
ParticularsAmt.ParticularsAmt.Balance b/d16,000Realisation A/c2,200Realisation (Assets)90,000Tanu's Capital A/c31,500Manu's Capital A/c72,300 –––––– ––––––1,06,0001,06,000
Working Note:
Creditors took over stock and paid Rs. 10,000 in full settlement. No effect will be shown for creditors and stock related to realisation and payment. Only Rs. 10,000 paid by creditors will be taken in receipt against settlement.