Other Sudry Assets
Furniture
Books Debts 1,24,200
Less: proision for D.D. ( 1,200)
Stock
Cash
1,17,000
11,000
1,23,000
17,800
13,200
2,82,000
2,82,000
It was agreed that.
a) X to take over fumiture at Rs.8,000 and debtors amounting to Rs. 1,20,000 at 1,17,200 and the creditors of Rs.16,000 were to be paid by him at this figure.
b) Y is to take over all the stock for Rs. 17,000 and some sundry assets at Rs.72,000 ( being 10% less than the book value)
c) Z to take over remaining sundry assets at 80% of the book value ands assume the responsibility of discharge of Bank overdraft together with accrued interest of Rs.2,300.
d) The expense of realization were Rs.2,700 which were to be borne by X. But was paid by the firm.
e) The remaining debtors were sold to a debt collecting agency at 50% of the value.
Prepare necessary ledger accounts to close the books of the firm.
The firm was dissolve on the above date:
(i) Fixed assets were realised at 120% and Rs. 50,000 of the debtors proved bad.
(ii) Creditors agreed to take stock in full settlement of their dues.
(iii) X accepted investment in full settlement of his loan.
(iv) Bank loan is paid off together with interest @ 9% p.a. for three months.
(v) An unrecorded investment was sold for Rs. 16,000
(vi) Compensation to workmen paid by the firm to Rs. 24,000.
(vii) X was allowed a remuneration of Rs. 25,000 and the expenses of realisation were to be borne by him . Firm paid realisation expenses of Rs. 10,000.
Prepare necessary accounts.
Q. X, Y and Z were partners sharing profits in the ratio 2 : 2 : 1. their balance sheet as on 31st March, 2010, when they dissolved the firm was as follows :
x
y
z
Ban Overdraft
Creaditor
1,27,500
1,10,000
17,000
11,500
16,00
Furniture
Books Debts 1,24,200
Less: proision for D.D. ( 1,200)
Stock
Cash
11,000
1,23,000
17,800
13,200
a) X to take over fumiture at Rs.8,000 and debtors amounting to Rs. 1,20,000 at 1,17,200 and the creditors of Rs.16,000 were to be paid by him at this figure.
b) Y is to take over all the stock for Rs. 17,000 and some sundry assets at Rs.72,000 ( being 10% less than the book value)
c) Z to take over remaining sundry assets at 80% of the book value ands assume the responsibility of discharge of Bank overdraft together with accrued interest of Rs.2,300.
d) The expense of realization were Rs.2,700 which were to be borne by X. But was paid by the firm.
e) The remaining debtors were sold to a debt collecting agency at 50% of the value.
Prepare necessary ledger accounts to close the books of the firm.
Rs.
Rs.
Workmen comp. Reserve
Bank Loan
X's Loan
Capitals
X 6,00,000
Y 4,50,000
Z 1,00,000
40,000
40,000
50,000
11,50,000
14,30,000
Debtors
Investments
Stock
Patents
Advertisement Sups A/c
Prepaid Expenses
Cash
2,80,000
30,000
1,40,000
10,000
20,000
12,100
37,900
14,30,000
The firm was dissolve on the above date:
(i) Fixed assets were realised at 120% and Rs. 50,000 of the debtors proved bad.
(ii) Creditors agreed to take stock in full settlement of their dues.
(iii) X accepted investment in full settlement of his loan.
(iv) Bank loan is paid off together with interest @ 9% p.a. for three months.
(v) An unrecorded investment was sold for Rs. 16,000
(vi) Compensation to workmen paid by the firm to Rs. 24,000.
(vii) X was allowed a remuneration of Rs. 25,000 and the expenses of realisation were to be borne by him . Firm paid realisation expenses of Rs. 10,000.
Prepare necessary accounts.
(a) There were total book debts of Rs. 38.000. A provision of bad and doubtful debts also stood in the books at Rs. 3,000. Book debts Rs. 6,000 proved bad and rest paid the amount due.
(b) Akash agreed to pay off his wife's loan of Rs. 3,500 at a discount of 5%
(c) A Laptop which was not recorded in the books was taken over by Sanju at 1,500, where as its expected value was e 2,500.
(d) A Contingent liability (not provided for) of Rs. 2,000 was also discharged.
(e) The firm had a debit balance of Rs. 13,500 in the profit and loss account on the date of dissolution.
(f) Yogesh paid the realiznation expenses of Rs. 7,500 out of his pocket (borne by firm) and he was to get a remuneration of Rs. 9,000 for completing the dissolution process.
(Ans. Realisation Loss Rs 19,825)