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Question -

The following is the Balance sheet of Tanu and Manu, who shares profit and losses in the ratio of 5:3, On December 31, 2017:

Balance Sheet of Tanu and Manu as on December 31, 2017

 

Liabilities

Amount

Assets

Amount

Sundry Creditors

62,000

Cash at Bank

16,000

Bills Payable

32,000

Sundry Debtors

55,000

Bank Loan

50,000

Stock

75,000

Reserve fund

16,000

Motor car

90,000

Capital:

Machinery

45,000

Tanu

1,10,000

Investment

70,000

Manu

90,000

2,00,000

Fixtures

9,000

 

 

3,60,000

3,60,000

 

 

 

 

 

On the above date the firm is dissolved and the following agreement was made: Tanu agree to pay the bank loan and took away the sundry debtors. Sundry creditors accepts stock and paid ₹ 10,000 to the firm. Machinery is taken over by Manu for ₹ 40,000 and agreed to pay of bills payable at a discount of 5%.. Motor car was taken over by Tanu for ₹ 60,000. Investment realised ₹ 76,000 and fixtures ₹ 4,000. The expenses of dissolution amounted to ₹ 2,200.
Prepare Realisation Account, Bank Account and Partners Capital Accounts.



Answer -

 Books of Tanu and Manu

 

Realisation Account

Dr.

 

Cr.

Particulars

Amount

Particulars

Amount

Sundry Debtors

55,000

Sundry Creditors

62,000

Stock

75,000

Bills Payable

32,000

Motor Car

90,000

Bank Loan

50,000

Machinery

45,000

Tanu’s Capital A/c:

Investment

70,000

Sundry Debtors

55,000

Fixtures

9,000

Motor Car

60,000

1,15,000

Manu’s Capital A/c  (Bills Payable)

30,400

Bank:

Bank  (Expenses)

2,200

Stock

10,000

Tanu’s Capital A/c (Bank Loan)

50000

Investment

76,000

Fixtures

4,000

90,000

Manu’s Capital (Machinery)

40,000

Loss transferred to

Manu’s Capital A/c

23,500

Manu’s Capital A/c

14,100

37,600

4,26,600

4,26,600

Partners’ Capital Account

Dr.

 

Cr.

Particulars

Tanu

Manu

Particulars

Tanu

Manu

Realisation (Assets taken)

1,15,000

40,000

Balance b/d

1,10,000

90,000

Realisation  (Loss)

23,500

14,100

Realisation  (Liabilities)

50,000

30,400

Bank

31,500

72,300

Reserve Fund

10,000

6,000

1,70,000

1,26,400

1,70,000

1,26,400

 

Bank Account

Dr.

 

Cr.

Particulars

Amount

Particulars

Amount

Balance b/d

16,000

Realisation (Expenses)

2,200

Realisation (Assets)

90,000

Tanu’s Capital A/c

31,500

Manu’s Capital A/c

72,300

1,06,000

1,06,000

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