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Question
A, B and C were partners sharing profits in the ratio of 5 : 3 : 2. On 31st March, 2019, A's Capital and B's Capital were ₹ 30,000 and ₹ 20,000 respectively but C owed ₹ 5,000 to the firm. The liabilities were ₹ 20,000. The assets of the firm realised ₹ 50,000.
Prepare Realisation Account, Partner's Capital Accounts and Bank Account.
Solution
Realisation Account
|
Dr. |
|
Cr. |
||||
|
Particulars |
Amount Rs |
Particulars |
Amount Rs |
|||
|
Sundry Assets (WN) |
65,000 |
Creditors |
20,000 |
|||
|
Cash A/c (Creditors) |
20,000 |
Cash A/c (Assets realised) |
50,000 |
|||
|
|
|
Loss transferred to: |
|
|||
|
|
|
A’s Capital A/c |
7,500 |
|
||
|
|
|
B’s Capital A/c |
4,500 |
|
||
|
|
|
C’s Capital A/c |
3,000 |
15,000 |
||
|
|
85,000 |
|
85,000 |
|||
Partners’ Capital Accounts
|
Dr. |
|
Cr. |
|||||||
|
Particulars |
A |
B |
C |
Particulars |
A |
B |
C |
||
|
Balance b/d |
– |
– |
5,000 |
Balance b/d |
30,000 |
20,000 |
– |
||
|
Realisation A/c (Loss) |
7,500 |
4,500 |
3,000 |
Cash A/c |
– |
– |
8,000 |
||
|
Cash A/c |
22,500 |
15,500 |
– |
|
|
|
|
||
|
|
30,000 |
20,000 |
8,000 |
|
30,000 |
20,000 |
8,000 |
||
Cash Account
|
Dr. |
|
Cr. |
|||
|
Particulars |
Amount Rs |
Particulars |
Amount Rs |
||
|
Realisation A/c (Assets) |
50,000 |
Realisation A/c (Creditors) |
20,000 |
||
|
C’s Capital A/c |
8,000 |
A’s Capital A/c |
22,500 |
||
|
|
|
B’s Capital A/c |
15,500 |
||
|
|
58,000 |
|
58,000 |
||
Working Note:
Memorandum Balance Sheet
as on March 31, 2018
|
Liabilities |
Amount Rs |
Assets |
Amount Rs |
|
|
Capital A/c |
|
C’s Capital A/c |
5,000 |
|
|
A |
30,000 |
|
Sundry Assets |
65,000 |
|
B |
20,000 |
50,000 |
(Balancing Figure) |
|
|
Other liabilities |
20,000 |
|
|
|
|
|
70,000 |
|
70,000 |
|
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Amount |
Assets | Amount (Rs.) |
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Amt (Rs.) |
Assets | Amt (Rs.) |
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| Sharma | 60,000 | |||
| 248,000 | 248,000 |
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| Rs. | |
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| Liabilities | Amount (₹) | Assets | Amount (₹) | |||||
| Capital A/cs: | Land and Building | 4,00,000 | ||||||
| Achal | 3,00,000 | Machinery | 3,00,000 | |||||
| Vichal | 5,00,000 | 8,00,000 | Debtors | 2,22,000 | ||||
| Creditors | 1,79,000 | Cash at Bank | 78,000 | |||||
| Employees' Provident Fund | 21,000 | |||||||
| 10,00,000 | 10,00,000 | |||||||
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| Liabilities | Amount (₹) |
Assets | Amount (₹) |
|||||
| Capital A/cs: | 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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| Liabilities | Amount (₹) |
Assets | Amount (₹) |
|
| Creditors | 40,000 | Cash at Bank | 3,000 | |
| Loan A/c: | Stock | 50,000 | ||
| A | 10,000 | Sundry Debtors | 50,000 | |
| Workmen Compensation Reserve | 21,000 | Land and Building | 57,000 | |
| Capital A/cs: | Profit and Loss A/c | 15,000 | ||
| A | 60,000 | Advertisement Suspense A/c | 6,000 | |
| B | 40,000 | |||
|
C |
10,000 | 1,10,000 | ||
| 1,81,000 | 1,81,000 | |||
During the course of realisation, a liability under a suit for damages is settled at ₹ 20,000 as against ₹ 5,000 only provided for in the books of the firm.
Land and Building were sold for ₹ 40,000 and the Stock and Sundry Debtors realised ₹ 30,000 and ₹ 42,000 respectively. The expenses of realisation amounted to ₹ 1,200.
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Prepare Realisation Account, Partners' Capital Accounts and Bank Account in the books of the firm.
Anju, Manju and Sanju were partners in a firm sharing profits in the ratio of 2 : 2 : 1. On 31st March, 2019, their Balance Sheet was:
| Liabilities | Amount (₹) |
Assets | Amount (₹) |
|
| 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 | |||
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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.
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?
P, Q and R are partners sharing profits and losses in the ratio of 3 : 3 : 2 respectively. Their respective capitals are in their profit-sharing proportions. On 1st April, 2018, the total capital of the firm and the balance of General Reserve are ₹ 80,000 and ₹ 20,000 respectively. During the year 2018-19, the firm made a profit of ₹ 28,000 before charging interest on capital @ 5%. The drawings of the partners are P___________₹ 8,000; Q___________₹ 7,000; and R__________₹ 5,000. On 31st March, 2019, their liabilities were ₹ 18,000.
On this date, they decided to dissolve the firm. The assets realised ₹ 1,08,600 and realisation expenses amounted to ₹ 1,800.
Prepare necessary Ledger Accounts to close the books of the firm.
