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Question -

Rita, Geeta and Ashish were partners in a firm sharing profits/losses in the ratio of 3:2:1. On March 31, 2017 their balance sheet was as follows:

Liabilities

Amount

₹

Assets

Amount

₹

Capitals:

 

 

Cash

22,500

Rita

80,000

 

Debtors

52,300

Geeta

50,000

 

Stock

36,000

Ashish

30,000

1,60,000

Investments

69,000

Creditors

 

65,000

Plant

91,200

Bills payable

 

26,000

 

 

General reserve

 

20,000

 

 

 

 

2,71,000

 

2,71,000

 

 

 

 

 
On the date of above mentioned date the firm was dissolved:
1. Rita was appointed to realise the assets. Rita was to receive 5% commission on the rate of assets (except cash) and was to bear all expenses of Realisation,
2. Assets were realised as follows:

 

₹

Debtors

30,000

Stock

26,000

Plant

42,750
3. Investments were realised at 85% of the book value,
4. Expenses of Realisation amounted to ₹ 4,100,
5. Firm had to pay ₹ 7,200 for outstanding salary not provided for earlier,
6. Contingent liability in respect of bills discounted with the bank was also materialized and paid off ₹ 9,800,
Prepare Realisation Account, Capital Accounts of Partners’ and Cash Account.



Answer -

In the books of Rita, Geeta and Ashish

 

Realisation Account

 

Dr.

 

Cr.

 

Particulars

Amount

₹

Particulars

Amount

₹

Debtors

52,300

Creditors

65,000

Stock

36,000

Bills Payable

26,000

Investment

69,000

Cash:

 

Plant

91,200

Debtors

30,000

 

Cash:

 

Stock

26,000

 

Outstanding Salaries

7,200

 

Plant

42,750

 

Discounted Bill

9,800

 

Investment

58,650

1,57,400

Creditors

65,000

 

 

 

Bills Payable

26,000

1,08,000

Loss transferred to

 

Rita’s Capital A/c

 

7,870

Rita’s Capital A/c

57,985

 

(Commission- 1,57,400 ´ 5/100)

 

Geeta’s Capital A/c

38,657

 

 

 

 

Ashish’s Capital A/c

19,328

1,15,970

 

 

 

 

 

 

 

 

364370

 

 

364370

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Partners’ Capital Account

Dr.

Cr.

Particulars

Rita

Geeta

Ashish

Particulars

Rita

Geeta

Ashish

Realisation (Loss)

57,985

38,657

19,328

Balance b/d

80,000

50,000

30,000

Bank

39,885

18,010

14,005

General Reserve

10,000

6,667

3,333

Realisation

7,870

97,870

56667

33333

97870

56,667

33,333

 

Cash Account

Dr.

 

Cr.

Particulars

Amount

₹

Particulars

Amount

₹

Balance b/d

22,500

Realisation A/c

1,08,000

Realisation

1,57,400

Rita’s Capital

39,885

Geeta’s Capital A/c

18,010

Ashish’s Capital A/c

14,005

1,79,900

1,79,900

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