Question 15: Anup and Sumit are equal partners in a firm. They decided to dissolve the partnership on December 31, 2017. When the balance sheet is as under:
Balance Sheet of Anup and Sumit as on December 31, 2017 | |||||
Liabilities | Amount Rs | Assets | Amount Rs | ||
Sundry Creditors | 27,000 | Cash at bank | 11,000 | ||
Reserve fund | 10,000 | Sundry Debtors | 12,000 | ||
Loan | 40,000 | Plants | 47,000 | ||
Capital |
|
| Stock | 42,000 | |
Anup | 60,000 |
| Lease hold land | 60,000 | |
Sumit | 60,000 | 1,20,000 | Furniture | 25,000 | |
|
| 1,97,000 |
| 1,97,000 | |
|
|
|
|
|
The Assets were realised as follows:
| Rs |
Lease hold land | 72,000 |
Furniture | 22,500 |
Stock | 40,500 |
Plant | 48,000 |
Sundry Debtors | 10,500 |
The Creditors were paid Rs 25,500 in full settlement. Expenses of Realisation amount to Rs 2,500.
Prepare Realisation Account, Bank Account, Partners Capital Accounts to close the books of the firm.
Answer :
Books of Anup and Sumit Realisation Account | |||||||
Dr. |
| Cr. | |||||
Particulars | Amount Rs | Particulars | Amount Rs | ||||
Sundry Debtors | 12,000 | Sundry Creditors | 27,000 | ||||
Plants | 47,000 | Loan | 40,000 | ||||
Stock | 42,000 | Bank: |
| ||||
Lease hold land | 60,000 | Lease hold Land | 72,000 |
| |||
Furniture | 25,000 | Furniture | 22,500 |
| |||
Bank: |
| Stock | 40,500 |
| |||
Creditors | 25,500 |
| Plant | 48,000 |
| ||
Loan | 40,000 |
| Sundry Debtors | 10,500 | 1,93,500 | ||
Expenses | 2500 | 68,000 |
|
|
| ||
Profit transferred to |
|
|
|
| |||
Anup’s Capital A/c | 3,250 |
|
|
| |||
Sumit’s Capital A/c | 3250 | 6,500 |
|
| |||
|
|
|
| ||||
| 2,60,500 |
| 2,60,500 | ||||
|
|
|
|
Partners’ Capital Account | |||||||||
Dr. |
| Cr.
| |||||||
Particulars | Anup | Sumit | Particulars | Anup | Sumit | ||||
Bank | 68,250 | 68,250 | Balance b/d | 60,000 | 60,000 | ||||
|
|
| Reserve Fund | 5,000 | 5,000 | ||||
|
|
| Realisation | 3,250 | 3,250 | ||||
|
|
|
|
|
| ||||
| 68,250 | 68,250 |
| 68,250 | 68,250 | ||||
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Bank Account | ||||||
Dr. |
| Cr. | ||||
Particulars | Amount Rs | Particulars | Amount Rs | |||
Balance b/d | 11,000 | Realisation (Expenses and Liabilities) | 68,000 | |||
Realisation (Assets ) | 1,93,500 | Anup’s Capital A/c | 68,250 | |||
|
| Sumit’s Capital A/c | 68,250 | |||
|
|
|
| |||
| 2,04,500 |
| 2,04,500 | |||
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|
|
|
NOTE: As per the solution, Profit on Realisation is Rs 6,500; however as per the answer given in the book is Rs 46,500. If Loan is not transferred to the Realisation Account and paid directly from Loan Account, then the answer would match with that of the book.
Question 16: Ashu and Harish are partners sharing profit and losses as 3:2. They decided to dissolve the firm on December 31, 2017. Their balance sheet on the above date was:
Balance Sheet of Ashu and Harish as on December 31, 2017 | ||||
Liabilities | Amount Rs | Assets | Amount Rs | |
Capitals: |
|
| Building | 80,000 |
Ashu | 1,08,000 |
| Machinery | 70,000 |
Harish | 54,000 | 1,62,000 | Furniture | 14,000 |
Creditors |
| 88,000 | Stock | 20,000 |
Bank overdraft |
| 50,000 | Investments | 60,000 |
|
|
| Debtors | 48,000 |
|
|
| Cash in hand | 8,000 |
|
| 3,00,000 |
| 3,00,000 |
|
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Ashu is to take over the building at Rs 95,000 and Machinery and Furniture is take over by Harish at value of Rs 80,000. Ashu agreed to pay Creditor and Harish agreed to meet Bank overdraft. Stock and Investments are taken by both partner in profit sharing ratio. Debtors realised for Rs 46,000, expenses of Realisation amounted to Rs 3,000. Prepare necessary ledger Account.
Answer :
Books of Ashu and Harish
Realisation Account | ||||||
Dr. |
| Cr. | ||||
Particulars | Amount Rs | Particulars | Amount Rs | |||
Building | 80,000 | Creditors | 88,000 | |||
Machinery | 70,000 | Bank overdraft | 50,000 | |||
Furniture | 14,000 | Ashu’s Capital A/c (Assets taken) | 1,43,000 | |||
Stock | 20,000 | Harish’s Capital A/c (Assets taken) | 1,12,000 | |||
Investments | 60,000 | Cash (Debtors) | 46,000 | |||
Debtors | 48,000 |
|
| |||
Ashu’s Capital A/c (Creditors) | 88,000 |
|
| |||
Harish’s Capital A/c (Bank Overdraft) | 50,000 |
|
| |||
Cash (Expenses) | 3,000 |
|
| |||
Profit transferred to |
|
|
| |||
Ashu’s Capital A/c | 3,600 |
|
|
| ||
Harish’s Capital A/c | 2,400 | 6,000 |
|
| ||
| 4,39,000 |
| 4,39,000 | |||
|
|
|
|
Partners’ Capital Account |
| |||||||
Dr. |
| Cr. |
| |||||
Particulars | Ashu | Harish | Particulars | Ashu | Harish | |||
Realisation (Assets taken) | 1,43,000 | 1,12,000 | Balance b/d | 1,08,000 | 54,000 | |||
Cash | 56,600 |
| Realisation (Liabilities) | 88,000 | 50,000 | |||
|
|
| Realisation (Profit) | 3,600 | 2,400 | |||
|
|
| Cash |
| 5,600 | |||
| 1,99,600 | 1,12,000 |
| 1,99,600 | 1,12,000 | |||
|
|
|
|
|
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Cash Account | |||||
Dr. |
| Cr. | |||
Particulars | Amount Rs | Particulars | Amount Rs | ||
Balance b/d | 8,000 | Realisation (Expenses) | 3,000 | ||
Realisation (Debtors) | 46,000 | Ashu’s Capital A/c | 56,600 | ||
Harish’s Capital A/c | 5,600 |
|
| ||
| 59,600 |
| 59,600 | ||
|
|
|
| ||
|
|
|
|
|
|
NOTE: As per the solution, the Profit on Realisation is Rs 6,000; however, the answer mentioned in the book is Rs 14,000.
Working Notes:
| Ashu | Harish |
Building | 95,000 |
|
Machinery and Furniture |
| 80,000 |
Stock (3:2) | 12,000 | 8,000 |
Investment (3:2) | 36,000 | 24,000 |
| Rs 1,43,000 | Rs 1,12,000 |
Question 17: 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 |
|
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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
Answer :
Books of Sanjay, Tarun and Vineet Realisation Account | |||||||
Dr. |
| Cr. | |||||
Particulars | Amount Rs | Particulars | Amount Rs | ||||
Plant | 90,000 | Creditors | 80,000 | ||||
Debtors | 60,000 | Bills Payable | 30,000 | ||||
Furniture | 32,000 | Cash: |
| ||||
Stock | 60,000 | Plant | 72,000 |
| |||
Investment | 70,000 | Debtors | 54,000 |
| |||
Bills Receivable | 36,000 | Furniture | 18,000 |
| |||
Cash : |
| Stock | 54,000 |
| |||
Creditors | 80,000 |
| Investments | 76,000 |
| ||
Bills Payable | 30,000 | 1,10,000 | Bills Receivable | 31,000 | 3,05,000 | ||
Sanjay’s Capital A/c | 18,300 | Loss transferred to |
| ||||
(6% commission) |
| Sanjay’s Capital | 30,650 |
| |||
|
| Tarun’s Capital A/c | 20,433 |
| |||
|
| Vineet’s Capital A/c | 10,217 | 61,300 | |||
| 4,76,300 |
| 4,76,300 | ||||
|
|
|
|
Partners’ Capital Account | |||||||||
Dr. |
Cr. | ||||||||
Particulars | Sanjay | Tarun | Vineet | Particulars | Sanjay | Tarun | Vineet | ||
Realisation (Loss) | 30,650 | 20,433 | 10,217 | Balance b/d | 1,00,000 | 1,00,000 | 70,000 | ||
Cash | 87,650 | 79,567 | 59,783 | Realisation (commission) | 18,300 |
|
| ||
|
|
|
|
|
|
|
| ||
| 1,18,300 | 1,00,000 | 70,000 |
| 1,18,300 | 1,00,000 | 70,000 | ||
|
|
|
|
|
|
|
|
Cash Account | |||||
Dr. |
| Cr. | |||
Particulars | Amount Rs | Particulars | Amount Rs | ||
Balance b/d | 32,000 | Realisation | 1,10,000 | ||
Realisation | 3,05,000 | Sanjay’s Capital A/c | 87,650 | ||
|
| Tarun’s Capital A/c | 79,567 | ||
|
| Vineet’s Capital A/c | 59,783 | ||
|
|
|
| ||
| 3,37,000 |
| 3,37,000 | ||
Question 18: The following is the Balance Sheet of Gupta and Sharma as on December 31,2017:
Balance Sheet of Gupta and Sharma as on December 31, 2017 | ||||
Liabilities | Amount Rs | Assets | Amount Rs | |
Sundry Creditors | 38,000 | Cash at Bank | 12,500 | |
Mrs.Gupta’s loan | 20,000 | Sundry Debtors | 55,000 | |
Mrs.Sharma’s loan | 30,000 | Stock | 44,000 | |
Reserve fund | 6,000 | Bills Receivable | 19,000 | |
Provision of doubtful debts | 4,000 | Machinery | 52,000 | |
Capital |
| Investment | 38,500 | |
Gupta | 90,000 |
| Fixtures | 27,000 |
Sharma | 60,000 | 1,50,000 |
|
|
| 2,48,000 |
| 2,48,000 | |
|
|
|
| |
|
|
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|
|
The firm was dissolved on December 31, 2017 and asset realised and settlements of liabilities as follows:
(a) The Realisation of the assets were as follows:
| Rs |
Sundry Debtors | 52,000 |
Stock | 42,000 |
Bills receivable | 16,000 |
Machinery | 49,000 |
(b) Investment was taken over by Gupta at agreed value of Rs 36,000 and agreed to pay of Mrs. Gupta’s loan.
(c) The Sundry Creditors were paid off less 3% discount.
(d) The Realisation expenses incurred amounted to Rs 1,200.
Journalise the entries to be made on the dissolution and prepare Realisation Account, Bank Account and Partners Capital Accounts.
Answer :
Books of Gupta and Sharma Journal |
| ||||||
Date | Particulars | L.F. | Amount Rs | Amount Rs | |||
2012 |
|
|
|
| |||
Dec. 31 | Realisation A/c | Dr. |
| 2,35,500 |
| ||
| To Sundry Debtors A/c |
|
|
| 55,000 | ||
| To Stock A/c |
|
|
| 44,000 | ||
| To Bills Receivable A/c |
|
|
| 19,000 | ||
| To Machinery A/c |
|
|
| 52,000 | ||
| To Investment A/c |
|
|
| 38,500 | ||
| To Fixtures A/c |
|
|
| 27,000 | ||
| (Assets transferred to Realisation Account) |
|
|
| |||
|
|
|
|
|
|
| |
Dec. 31 | Sundry Creditors A/c | Dr. |
| 38,000 |
| ||
| Mrs. Gupta’s Loan A/c | Dr. |
| 20,000 |
| ||
| Mrs. Sharma’s Loan A/c | Dr. |
| 30,000 |
| ||
| Provision for Doubtful Debts | Dr. |
| 4,000 |
| ||
| To Realisation A/c |
|
|
| 92,000 | ||
| (Liabilities transferred to Realisation Account) |
|
|
| |||
|
|
|
|
|
|
| |
Dec. 31 | Bank A/c | Dr. |
| 1,59,000 |
| ||
| To Realisation A/c |
|
|
| 1,59,000 | ||
| (Assets realised: Sundry Debtors Rs 52,000, Stock Rs 42,000, Bills Receivable Rs 16,000, Machinery Rs 49,000) |
|
|
| |||
|
|
|
|
|
|
| |
Dec. 31 | Realisation A/c | Dr. |
| 20,000 |
| ||
| To Gupta’s Capital A/c |
|
|
| 20,000 | ||
| (Gupta took over Mrs. Gupta's Loan) |
|
|
| |||
|
|
|
|
|
|
| |
Dec. 31 | Gupta’s Capital A/c | Dr. |
| 36,000 |
| ||
| To Realisation A/c |
|
|
| 36,000 | ||
| (Investment taken over by Gupta) |
|
|
|
| ||
|
|
|
|
|
|
| |
Dec. 31 | Realisation A/c | Dr. |
| 66,860 |
| ||
| To Bank A/c |
|
|
| 66,860 | ||
| (Liabilities paid: Mrs. Sharma's Loan Rs 30,000 and Creditors Rs 38,000 paid off less 3% discount) |
|
|
| |||
|
|
|
|
|
|
| |
Dec. 31 | Realisation A/c | Dr. |
| 1,200 |
| ||
| To Bank A/c |
|
|
| 1,200 | ||
| (Realisation expenses paid) |
|
|
|
| ||
|
|
|
|
|
|
| |
Dec. 31 | Gupta’s Capital A/c | Dr. |
| 18,280 |
| ||
| Sharma’s Capital A/c | Dr. |
| 18,280 |
| ||
| To Realisation A/c |
|
|
| 36,560 | ||
| (Loss on Realisation transferred to Partners’ capital Account) |
|
|
| |||
|
|
|
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|
|
| |
Dec. 31 | Reserve Fund A/c | Dr. |
| 6,000 |
| ||
| To Gupta’s Capital A/c |
|
|
| 3,000 | ||
| To Sharma’s Capital A/c |
|
|
| 3,000 | ||
| (Reserve fund distributed among partners ratio) |
|
|
| |||
|
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|
|
|
|
| |
Dec. 31 | Gupta’s Capital A/c | Dr. |
| 58,720 |
| ||
| Sharma’s Capital A/c | Dr. |
| 44,720 |
| ||
| To Bank A/c |
|
|
| 1,03,440 | ||
| (Final payment made to partners) |
|
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|
| ||
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| ||
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Realisation Account |
| ||||||||
Dr. |
| Cr. |
| ||||||
Particulars | Amount Rs | Particulars | Amount Rs | ||||||
Sundry Debtors | 55,000 | Sundry Creditors | 38,000 | ||||||
Stock | 44,000 | Mrs. Gupta’s Loan | 20,000 | ||||||
Bills Receivable | 19,000 | Mrs. Sharma’s Loan | 30,000 | ||||||
Machinery | 52,000 | Provision for Doubtful Debts | 4,000 | ||||||
Investment | 38,500 | Bank : |
| ||||||
Fixtures | 27,000 | Sundry Debtors | 52,000 |
| |||||
Gupta’s Capital A/c (Mrs. Gupta Loan) | 20,000 | Stock | 42,000 |
| |||||
Bank A/c: |
| Bills Receivable | 16,000 |
| |||||
Creditors | 36,860 |
| Machinery | 49,000 | 1,59,000 | ||||
Mrs. Sharma’s Loan | 30,000 |
| Gupta’s Capital A/c (Investment) | 36,000 | |||||
Expense | 1,200 | 68,060 | Loss transferred to |
| |||||
|
|
| Gupta’s Capital A/c | 18,280 |
| ||||
|
|
| Sharma’s Capital A/c | 18,280 | 36,560 | ||||
|
|
|
|
| |||||
|
| 3,23,560 |
| 3,23,560 | |||||
|
|
|
|
|
Partners’ Capital Account |
| |||||||
Dr. |
| Cr. |
| |||||
Particulars | Gupta | Sharma | Particulars | Gupta | Sharma | |||
Realisation (Investment) | 36,000 |
| Balance b/d | 90,000 | 60,000 | |||
Realisation (Loss) | 18,280 | 18,280 | Realisation (Mrs. Gupta Loan) | 20,000 |
| |||
Bank | 58,720 | 44,720 | Reserve Fund | 3,000 | 3,000 | |||
|
|
|
|
|
| |||
| 1,13,000 | 63,000 |
| 1,13,000 | 63,000 | |||
|
|
|
|
|
|
Bank Account |
| |||||
Dr. |
| Cr. |
| |||
Particulars | Amount Rs | Particulars | Amount Rs | |||
Balance b/d | 12,500 | Realisation | 68,060 | |||
Realisation (Assets realised) | 1,59,000 | (Payment of expenses and liabilities) |
| |||
|
| Gupta’s Capital A/c | 58,720 | |||
|
| Sharma’s Capital A/c | 44,720 | |||
|
|
|
| |||
| 1,71,500 |
| 1,71,500 | |||
|
|
|
|
NOTE: As per the solution, Loss on Realisation is Rs 36,560 and the total of Bank Account is Rs 1,71,500. However, the answers mentioned in the book are Rs 19,660 and Rs 1,88,500 respectively.
Question 19: Ashok, Babu and Chetan are in partnership sharing profit in the proportion of 1/2, 1/3, 1/6 respectively. They dissolve the partnership of the December 31, 2017, when the balance sheet of the firm as under:
Balance Sheet of Ashok, Babu and Chetan as on December 31, 2017
| ||||
Liabilities | Amount Rs | Assets | Amount Rs | |
Sundry Creditors | 20,000 | Bank | 7,500 | |
Bills payable | 25,500 | Sundry Debtors | 58,000 | |
Babu’s loan | 30,000 | Stock | 39,500 | |
Capital’s: |
| Machinery | 48,000 | |
Ashok | 70,000 |
| Investment | 42,000 |
Babu | 55,000 |
| Freehold Property | 50,500 |
Chetan | 27,000 | 1,52,000 |
|
|
Current Accounts : |
|
|
| |
Ashok | 10,000 |
|
|
|
Babu | 5,000 |
|
|
|
Chetan | 3,000 | 18,000 |
|
|
|
| 2,45,500 |
| 2,45,500 |
|
|
|
|
|
|
|
|
|
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The Machinery was taken over by Babu for Rs 45,000, Ashok took over the Investment for Rs 40,000 and Freehold property took over by Chetan at Rs 55,000. The remaining Assets realised as follows: Sundry Debtors Rs 56,500 and Stock Rs 36,500. Sundry Creditors were settled at discount of 7%. A Office computer, not shown in the books of Accounts realised Rs 9,000. Realisation expenses amounted to Rs 3,000.
Prepare Realisation Account, Partners Capital Account, Bank Account.
Answer :
Realisation Account | ||||||||
Dr. |
| Cr. | ||||||
Particulars | Amount Rs | Particulars | Amount Rs | |||||
Sundry Debtors | 58,000 | Sundry Creditors | 20,000 | |||||
Stock | 39,500 | Bills Payable | 25,500 | |||||
Machinery | 48,000 | Ashok’s Current A/c (Investment) | 40,000 | |||||
Investment | 42,000 | Babu’s Current A/c (Machinery) | 45,000 | |||||
Freehold property | 50,500 | Chetan’s Current A/c | 55,000 | |||||
Bank: |
| (Free hold property) |
| |||||
Sundry Creditors | 18,600 |
| Bank: |
| ||||
Bills payable | 25,500 |
| Sundry Debtors | 56,500 |
| |||
Expenses | 3,000 | 47,100 | Stock | 36,500 |
| |||
Profit Transferred to |
| Unrecorded computer | 9,000 | 1,02,000 | ||||
Ashok’s Current A/c | 1,200 |
|
|
|
| |||
Babu’s Current A/c | 800 |
|
|
|
| |||
Chetan’s Current A/c | 400 | 2,400 |
|
|
| |||
|
|
|
|
| ||||
|
| 2,87,500 |
| 2,87,500 | ||||
|
|
|
|
|
Partners' Current Account |
| |||||||||
Dr. |
| Cr. |
| |||||||
Particulars | Ashok | Babu | Chetan | Particulars | Ashok | Babu | Chetan | |||
Realisation | 40,000 | 45,000 | 55,000 | Balance b/d | 10,000 | 5,000 | 3,000 | |||
(Assets taken) |
|
|
| Realisation (Profit) | 1,200 | 800 | 400 | |||
|
|
|
| Ashok's Capital A/c | 28,800 |
|
| |||
|
|
|
| Babu's Capital A/c |
| 39200 |
| |||
|
|
|
| Chetan's Capital A/c |
|
| 51600 | |||
| 40,000 | 45,000 | 55,000 |
| 40,000 | 45,000 | 55,000 | |||
|
|
|
|
|
|
|
|
Partners' Capital Account |
| |||||||||
Dr. |
| Cr. |
| |||||||
Particulars | Ashok | Babu | Chetan | Particulars | Ashok | Babu | Chetan | |||
Ashok's Current | 28,800 |
|
| Balance b/d | 70,000 | 55,000 | 27,000 | |||
Babu's Current |
| 39200 |
| Bank |
|
| 24,600 | |||
Chetan's Current |
|
| 51600 |
|
|
|
| |||
Bank | 41,200 | 15,800 |
|
|
|
|
| |||
|
|
|
|
|
|
|
| |||
|
|
|
|
|
|
|
| |||
| 70,000 | 55,000 | 51,600 |
| 70,000 | 55,000 | 51,600 | |||
|
|
|
|
|
|
|
|
Babu’s Loan A/c | |||||
Dr. |
| Cr. | |||
Particulars | Amount | Particulars | Amount | ||
Cash A/c | 30,000 | Balance b/d | 30,000 | ||
|
|
|
| ||
| 30,000 |
| 30,000 | ||
|
|
|
| ||
Bank Account |
| |||||
Dr. |
| Cr. |
| |||
Particulars | Amount Rs | Particulars | Amount Rs | |||
Balance b/d | 7,500 | Realisation (Payment of Expenses | 47,100 | |||
Realisation (Assets realised ) | 102,000 | and Liabilities) |
| |||
Chetan’s Capital A/c | 24,600 | Babu’s Loan | 30,000 | |||
|
| Ashok’s Capital A/c | 41,200 | |||
|
| Babu’s Capital A/c | 15,800 | |||
|
|
|
| |||
| 1,34,100 |
| 1,34,100 | |||
|
|
|
|
Note: As per the solution, profit on realisation is Rs 2,400. However, the answer provided in the book is Rs 1,200
Question 20: The following is the Balance sheet of Tanu and Manu, who shares profit and losses in the ratio of 5:3, On December 31,2017:
Balance Sheet of Tanu and Manu as on December 31, 2017
|
| ||||
Liabilities | Amount Rs | Assets | Amount Rs | ||
Sundry Creditors |
| 62,000 | Cash at Bank | 16,000 | |
Bills Payable |
| 32,000 | Sundry Debtors | 55,000 | |
Bank Loan |
| 50,000 | Stock | 75,000 | |
Reserve fund |
| 16,000 | Motor car | 90,000 | |
Capital: |
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| Machinery | 45,000 | |
Tanu | 1,10,000 |
| Investment | 70,000 | |
Manu | 90,000 | 2,00,000 | Fixtures | 9,000 | |
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| 3,60,000 |
| 3,60,000 | |
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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 Accounts.
Answer 20:
Books of Tanu and Manu Realisation Account |
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Dr. |
| Cr. |
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Particulars | Amount Rs | Particulars | Amount Rs | ||||
Sundry Debtors | 55,000 | Sundry Creditors | 62,000 | ||||
Stock | 75,000 | Bills Payable | 32,000 | ||||
Motor Car | 90,000 | Bank Loan | 50,000 | ||||
Machinery | 45,000 | Tanu’s Capital A/c: |
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Investment | 70,000 | Sundry Debtors | 55,000 |
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Fixtures | 9,000 | Motor Car | 60,000 | 1,15,000 | |||
Manu’s Capital A/c (Bills Payable) | 30,400 | Bank: |
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Bank (Expenses) | 2,200 | Stock | 10,000 |
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Tanu's Capital A/c (Bank Loan) | 50000 | Investment | 76,000 |
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| Fixtures | 4,000 | 90,000 | |||
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| Manu’s Capital (Machinery) | 40,000 | ||||
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| Loss transferred to |
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| Manu’s Capital A/c | 23,500 |
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| Manu’s Capital A/c | 14,100 | 37,600 | |||
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| 4,26,600 |
| 4,26,600 | ||||
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Partners' Capital Account |
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Dr. |
| Cr. |
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Particulars | Tanu | Manu | Particulars | Tanu | Manu | |||
Realisation (Assets taken) | 1,15,000 | 40,000 | Balance b/d | 1,10,000 | 90,000 | |||
Realisation (Loss) | 23,500 | 14,100 | Realisation (Liabilities) | 50,000 | 30,400 | |||
Bank | 31,500 | 72,300 | Reserve Fund | 10,000 | 6,000 | |||
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| 1,70,000 | 1,26,400 |
| 1,70,000 | 1,26,400 | |||
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Bank Account |
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Dr. |
| Cr. |
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Particulars | Amount Rs | Particulars | Amount Rs | |||
Balance b/d | 16,000 | Realisation (Expenses) | 2,200 | |||
Realisation (Assets) | 90,000 | Tanu’s Capital A/c | 31,500 | |||
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| Manu’s Capital A/c | 72,300 | |||
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| 1,06,000 |
| 1,06,000 | |||
47 videos|178 docs|56 tests
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1. What are the reasons for the dissolution of a partnership? |
2. How can a partnership be dissolved by mutual consent? |
3. What happens to the assets and liabilities of a partnership upon dissolution? |
4. Can a partnership be dissolved if one partner becomes insolvent? |
5. Can a partnership be dissolved by a court order? |
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