Question

Umang, Urmil and Urvi were partners sharing profits and losses in the ratio of 2: 2: 1. The following is the Balance Sheet as on 31st March, 2023.

Balance Sheet as on 31st March, 2023
Liabilities	Amount (₹)	Amount (₹)	Assets	Amount (₹)	Amount (₹)
Capital Accounts:			Machinery		75,000
Umang		90,000	Investments		36,000
Urmil		30,000	Debtors	82,500	78,000
Urvi		30,000	Less: R.D.D.	4,500
General Reserve		9,000	Stock		30,000
Creditors		60,000	Profit and Loss A/c		27,000
Umang's Loan A/c		12,000	Bank		6,000
12,000		21,000
		2,52,000			2,52,000

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

1) Assets were realised at: Machinery ~ 67,500, Stock ₹ 27,000, Investments ₹ 31,500 and Debtors ₹ 67 ,500.

(2) Dissolution expenses were ₹ 4,500

(3) Goodwill of the finn realised ₹ 36,000.

Prepare Realisation A/c, Partners' Capital A/cs and Bank A/c.

Answer 1

Dr.	In the books of Umang, Urmil and Urvi Realisation Account				Cr.
Particulars	Amount (₹)	Amount (₹)	Particulars	Amount (₹)	Amount (₹)
To Sundry Assets A/c			By Sundry Liabilities A/c
Machinery	75,000	2,23,500	Creditors	60,000	85,500
Investments	36,000		Bills Payable	21,000
Debtors	82,500		R.D.D.	4,500
Stock	30,000		By Bank A/c
To Bank A/c			Machinery	67,500	2,29,500
Dissolution Expenses	4,500		Stock	27,000
Creditors	60,000	85,500	Investments	31,500
Bills Payable	21,000		Debtors	67,500
To Partner's Capital A/cs (Profit on Realisation transferred)			Goodwill	36,000
Umang	2,400
Urmil	2,400
Urv	1,200	6,000
		3,15,000			3,15,000

 

Dr.	Partner's Capital Accounts						Cr.
Particulars	Umang (₹)	Urmil (₹)	Urvi (₹)	Particulars	Umang (₹)	Urmil (₹)	Urvi (₹)
To Profit and Loss A/c	10,800	10,800	5,400	By Balance b/d	90,000	30,000	30,000
To Balance c/d	85,200	25,200	27,600	By Realisation A/c	2,400	2,400	1,200
				By General Reserve A/c	3,600	3,600	1,800
	96,000	36,000	33,000		96,000	36,000	33,000

 

Dr.	Bank Account		Cr.
Particulars	Amount (₹)	Particulars	Amount (₹)
To Balance b/d	6,000	By Realisation A/c (Liabilities)	85,500
To Realisation A/c (Assets)	2,29,500	By Umang’s Loan A/c	12,000
		By Umang’s Capital A/c	85,200
		By Urmil’s Capital A/c	25,200
		By Urvi’s Capital A/c	27,600
	2,35,500		2,35,500