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Question -

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

₹

Assets

Amount

₹

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

 

 

 

 

 
The Machinery was taken over by Babu for ₹ 45,000, Ashok took over the Investment for ₹ 40,000 and Freehold property was taken over by Chetan at ₹ 55,000. The remaining Assets realised as follows: Sundry Debtors ₹ 56,500 and Stock ₹ 36,500. Sundry Creditors were settled at discount of 7%. A Office computer, not shown in the books of Accounts realised ₹ 9,000. Realisation expenses amounted to ₹ 3,000.
Prepare Realisation Account, Partners Capital Account, and Bank Account.



Answer -

Realisation Account

Dr.

 

Cr.

Particulars

Amount

₹

Particulars

Amount

₹

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 Accounts

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 Accounts

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

₹

Particulars

Amount

₹

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

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