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Question
Bale and Yale are equal partners of a firm. They decide to dissolve their partnership on 31st March, 2019 at which date their Balance Sheet stood as:
| Liabilities | ₹ | Assets | ₹ | |
| Capital A/cs: | Building | 45,000 | ||
| Bale | 50,000 | Machinery | 15,000 | |
| Yale | 40,000 | 90,000 | Furniture | 12,000 |
| General Reserve | 8,000 | Debtors | 8,000 | |
| Bale's Loan A/c | 3,000 | Stock | 24,000 | |
| Creditors | 14,000 | Bank | 11,000 | |
| 1,15,000 | 1,15,000 | |||
(a) The assets realised were:
Stock ₹ 22,000; Debtors ₹ 7,500; Machinery ₹ 16,000; Building ₹ 35,000.
(b) Yale took over the Furniture at ₹ 9,000.
(c) Bale agreed to accept ₹ 2,500 in full settlement of his Loan Account.
(d) Dissolution Expenses amounted to ₹ 2,500.
Prepare the:
(i) Realisation Account; (ii) Capital Accounts of Partners;
(iii) Bale's Loan Account; (iv) Bank Account.
Solution
Realisation Account
|
Dr. |
|
Cr. |
|||||
|
Particulars |
Amount (₹) |
Particulars |
Amount (₹) |
||||
|
Building |
45,000 |
Creditors |
14,000 |
||||
|
Machinery |
15,000 |
Bank A/c: |
|
||||
|
Furniture |
12,000 |
Stock |
22,000 |
|
|||
|
Debtors |
8,000 |
Debtors |
7,500 |
|
|||
|
Stock |
24,000 |
Machinery |
16,000 |
|
|||
|
|
|
Building |
35,000 |
80,500 |
|||
|
Creditors |
14,000 |
|
Bale’s Loan |
500 |
|||
|
Expenses |
2,500 |
16,500 |
Yale’s Capital A/c (Furniture) |
9,000 |
|||
|
|
|
Loss transferred to: |
|
||||
|
|
|
Bale’s Capital A/c |
8,250 |
|
|||
|
|
|
Yale’s Capital A/c |
8,250 |
16,500 |
|||
|
|
1,20,500 |
|
1,20,500 |
||||
Partners’ Capital Accounts
|
Dr. |
|
Cr. |
|||||
|
Particulars |
Bale |
Yale |
Particulars |
Bale |
Yale |
||
|
Realisation A/c (Loss) |
8,250 |
8,250 |
Balance b/d |
50,000 |
40,000 |
||
|
Realisation A/c |
– |
9,000 |
General Reserve |
4,000 |
4,000 |
||
|
Bank A/c |
45,750 |
26,750 |
|
|
|
||
|
|
54,000 |
44,000 |
|
54,000 |
44,000 |
||
Bale’s Loan Account
|
Dr. |
|
Cr. |
|||
|
Particulars |
Amount (₹) |
Particulars |
Amount (₹) |
||
|
Bank A/c |
2,500 |
Balance b/d |
3,000 |
||
|
Realisation A/c |
500 |
|
|
||
|
|
3,000 |
|
3,000 |
||
Bank Account
|
Dr. |
|
Cr. |
|||
|
Particulars |
Amount (₹) |
Particulars |
Amount (₹) |
||
|
Balance b/d |
11,000 |
Bale’s Loan |
2,500 |
||
|
Realisation A/c |
80,500 |
Realisation A/c |
16,500 |
||
|
|
|
Bale’s Capital A/c |
45,750 |
||
|
|
|
Yale’s Capital A/c |
26,750 |
||
|
|
91,500 |
|
91,500 |
||
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BALANCE SHEET as at 31st March, 2018
|
Liabilities |
Amount (₹) |
Assets |
Amount (₹) |
||
| Creditors |
80,000 |
Building | 1,20,000 | ||
| Mrs. Pradeep's Loan | 40,000 | Investment | 30,600 | ||
| Rajesh's Loan |
24,000 |
Debtors |
34,000 |
|
|
| Investment Fluctuation Fund |
8,000 |
Less: Provision for Doubtful Debts |
4,000 |
30,000 |
|
| Capital A/cs: | Bills Receivable | 37,400 | |||
| Pradeep |
42,000 |
|
Bank | 6,000 | |
| Rajesh |
42,000 |
84,000 |
Profit and Loss A/c | 8,000 | |
|
|
|
Goodwill |
4,000 |
||
|
2,36,000 |
2,36,000 |
||||
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(f) Bill receivables were settled at a loss of ₹ 1,400.
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A and B are partners in a firm sharing profits and losses in the ratio of 3 : 2. On 31st March, 2019, their Balance Sheet was as follows:
| BALANCE SHEET as at 31st March, 2019 | ||||
| Liabilities | Amount (₹) |
Assets | Amount (₹) |
|
| Creditors | 38,000 | Cash at Bank | 11,500 | |
| Mrs. A's Loan | 10,000 | Stock | 6,000 | |
| B's Loan | 15,000 | Debtors | 19,000 | |
| Reserve | 5,000 | Furniture | 4,000 | |
| A's Capital | 10,000 | Plant | 28,000 | |
| B's Capital | 8,000 | 18,000 | Investments | 10,000 |
| Profit and LossA/C | 7,500 | |||
| 86,000 | 86,000 | |||
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(b) Other assets realised as: Stock − ₹ 5,000; Debtors − ₹ 18,500; Furniture − ₹ 4,500; Plant − ₹ 25,000.
(c) Expenses of realisation came to ₹ 1,600.
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Prepare Realisation Account, Partners' Capital Accounts and Bank Account.
A and B are partners in a firm sharing profits and losses in the ratio of 2 : 1. On 31st March, 2019, their Balance Sheet was:
| Liabilities | Amount (₹) |
Assets | Amount (₹) |
|||||
| Bank Overdraft | 30,000 | Cash in Hand | 6,000 | |||||
| General Reserve | 56,000 | Bank Balance | 10,000 | |||||
| Investments Fluctuation Reserve | 20,000 | Sundry Debtors | 26,000 | |||||
| A's Loan | 34,000 | Less: Provision for Doubtful Debtors | 2,000 | 24,000 | ||||
| Capital A/c: | ||||||||
| A | 50,000 | Investments | 40,000 | |||||
| Stock | 10,000 | |||||||
| Furniture | 10,000 | |||||||
| Building | 60,000 | |||||||
| B's Capital | 30,000 | |||||||
| 1,90,000 | 1,90,000 | |||||||
On that date, the partners decide to dissolve the firm. A took over Investments at an agreed valuation of ₹ 35,000. Other assets were realised as follows:
Sundry Debtors: Full amount. The firm could realise Stock at 15% less and Furniture at 20% less than the book value. Building was sold at ₹ 1,00,000.
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Prepare Realisation Account, Partner's Capital Accounts and Bank Account.
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Prepare Realisation Account and show your workings clearly.
On 1st April, 2018, A, B and C commenced business in partnership sharing profits and losses in proportion of 1/2, 1/3 and 1/6 respectively. They paid into their Bank A/c as their capitals ₹ 22,000; ₹ 10,000 by A, ₹ 7,000 by B and ₹ 5,000 by C. During the year, they drew ₹ 5,000; being ₹ 1,900 by A, ₹ 1,700 by B and ₹ 1,400 by C.
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