Question

Srijan, Raman and Manan were partners in a firm sharing profits and losses in the ratio of 2: 2: 1. On 31st March 2017 their Balance Sheet was as follows:

Balance Sheet of Srijan , Raman and Manan as on 31.3.2017
Liabilities	Amount Rs	Assets	Amount Rs
Capitals:       Srijan       2,00,000       Raman      1,50,000 Creditors Bills Payable Outstanding Salary	3,50,000 75,000 40,000 35,000	Capital: Manan Plant Investment Stock Debtors Bank Profit & Loss A/c	10,000 2,20,000 70,000 50,000 60,000 10,000 80,000
	5,00,000		5,00,000

On the above date, they decided to dissolve the firm.

1) Srijan was appointed to realise the assets and discharge the liabilities. Srijan was to receive 5% commission on the sale of assets (except cash) and was to bear all expenses of realisation.

2) Assets were realised as follows:

	Rs
Plant	85,000
Stock	33,000
Debtors	47,000

3) Investments were realised at 95% of the book value.

4) The firm had to pay Rs 7,500 for an outstanding repair bill not provided for earlier.

5) A contingent liability in respect of bills receivable, discounted with the bank had also materialised and had to be discharged for Rs 15,000.

6) Expenses of realisation amounting to Rs 3,000 were paid Srijan.

Prepare Realisation Account Partners' Capital Accounts and Bank Account.

Answer 1

Realisation Account

Dr.

Cr.

Particulars	Rs	Particulars	Rs
To Plant A/c To Investment A/c To Stock A/c To Debtors A/c To Bank A/c Creditors                 75,000 Bills Payable             40,000 Outstanding Salary   35,000 To Bank A/c  Outstanding Bill for Repair    7,500  Dishonour of Discount Bill   15,000 To Srijan’s Capital A/c Commission (2,31,500x0.05)	2,20,000 70,000 50,000 60,000       1,50,000     22,500   11,575	By Creditors By Bills Payable By Outstanding Salary By Bank A/c     Plant            85,000     Stock           33,000     Debtors        47,000     Investment   66,500 By Partners Capital A/c    Srijan         81,030    Raman        81,030    Manan        40,515	75,000 40,000 35,000         2,31,500       2,02,575
	5,84,075		5,84,075

 

Partner’s Capital Account

Dr.

Cr.

Particulars	Srijan	Raman	Manan	Particulars	Srijan	Raman	Manan
To Balance b/d To P/L A/c To Realisation A/c (Loss) To Bank A/c	32,000   81,030 98,545	32,000   81,030 36,970	10,000 16,000   40,515	By Balance b/d By Realisation A/c (Commission) By Bank A/c	2,00,000   11,575	1,50,000	66,515
	2,11,575	1,50,000	66,515		2,11,575	1,50,000	66,515

 

Bank Account

Dr.

Cr.

Particulars	Rs	Particulars	Rs
To Balance b/d To Realisation A/c (Asset realised) To Manan’s Capital A/c	10,000 2,31,500 66,515	By Realisation A/c By Realisation A/c By Srijan’s Capital A/c By Raman’s Capital A/c	1,50,000 22,500 98,545 36,970
	3,08,015		3,08,015