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Question -

Anup and Sumit are equal partners in a firm. They decided to dissolve the partnership on December 31, 2017. When the balance sheet is as under:

Balance Sheet of Anup and Sumit as on December 31, 2017

 

Liabilities

Amount

Assets

Amount

Sundry Creditors

27,000

Cash at bank

11,000

Reserve fund

10,000

Sundry Debtors

12,000

Loan

40,000

Plants

47,000

Capital

Stock

42,000

Anup

60,000

Lease hold land

60,000

Sumit

60,000

1,20,000

Furniture

25,000

 

 

1,97,000

1,97,000

 

 

 

 

 

TheAssets were realised as follows:

 

 

Lease hold land

72,000

Furniture

22,500

Stock

40,500

Plant

48,000

Sundry Debtors

10,500

The Creditors were paid ₹ 25,500 in full settlement. Expenses of Realisation amount to ₹ 2,500.
Prepare Realisation Account, Bank Account, and Partners Capital Accounts to close the books of the firm.



Answer -

Books of Anup and Sumit

 

Realisation Account

Dr.

 

Cr.

Particulars

Amount

Particulars

Amount

Sundry Debtors

12,000

Sundry Creditors

27,000

Plants

47,000

Loan

40,000

Stock

42,000

Bank:

Lease hold land

60,000

Lease hold Land

72,000

Furniture

25,000

Furniture

22,500

Bank:

Stock

40,500

Creditors

25,500

Plant

48,000

Loan

40,000

Sundry Debtors

10,500

1,93,500

Expenses

2500

68,000

Profit transferred to

Anup’s Capital A/c

3,250

Sumit’s Capital A/c

3250

6,500

2,60,500

2,60,500

Partners’ Capital Account

Dr.

 

Cr.

Particulars

Anup

Sumit

Particulars

Anup

Sumit

Bank

68,250

68,250

Balance b/d

60,000

60,000

Reserve Fund

5,000

5,000

Realisation

3,250

3,250

68,250

68,250

68,250

68,250

 

Bank Account

Dr.

 

Cr.

Particulars

Amount

Particulars

Amount

Balance b/d

11,000

Realisation (Expenses and Liabilities)

68,000

Realisation (Assets )

1,93,500

Anup’s Capital A/c

68,250

Sumit’s Capital A/c

68,250

2,04,500

2,04,500

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