Question

There are two partners X and Y in a firm and their capitals are ₹ 50,000 and ₹ 40,000. The creditors are ₹ 30,000. The assets of the firm realise ₹ 1,00,000. How much will X and Y receive?

Answer 1

Realisation Account
Dr.					Cr.
Particulars		Amount Rs	Particulars			Amount Rs
Sundry Assets (WN)		1,20,000	Creditors			30,000
Cash A/c		30,000	Cash A/c			1,00,000
			Loss transferred to:
			X’s Capital A/c	10,000
			Y’s Capital A/c	10,000		20,000
		1,50,000				1,50,000

Partners’ Capital Accounts
Dr.							Cr.
Particulars		X	Y	Particulars	X	Y
Realisation A/c (Loss)		10,000	10,000	Balance b/d	50,000	40,000
Cash A/c		40,000	30,000
		50,000	40,000		50,000	40,000

Cash Account
Dr.					Cr.
Particulars		Amount Rs	Particulars	Amount Rs
Realisation A/c		1,00,000	Realisation A/c	30,000
			X’s Capital A/c	40,000
			Y’s Capital A/c	30,000
		1,00,000		1,00,000

Working Note:

Memorandum Balance Sheet
Liabilities		Amount Rs	Assets	Amount Rs
Capital A/c			Sundry Assets	1,20,000
X	50,000		(Balancing Figure)
Y	40,000	90,000
Creditors		30,000
		1,20,000		1,20,000