2. 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, 2006, when the balance sheet of the firm as under:
Balance Sheet of Ashok, Babu and Chetan as on December 31, 2006
Liabilities
Amount
Rs
Assets
Amount
Rs
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 Rs 45,000, Ashok took over the Investment for Rs 40,000 and Freehold property took over by Chetan at Rs 55,000. The remaining Assets realised as follows: Sundry Debtors Rs 56,500 and Stock Rs 36,500. Sundry Creditors were settled at discount of 7%. AOffice computer, not shown in the books of Accounts realised Rs 9,000. Realisation expenses amounted to Rs 3,000.
Prepare Realisation Account, Partners Capital Account, Bank Account.
Dear Student
Regards
| Realisation A/c | |||||||
| Date | Particulars | Amount (in Rs) | Date | Particulars | Amount (in Rs) | ||
| Sundry Debtors | 58,000 | Sundry Creditors A/c | 20,000 | ||||
| Stock A/c | 39,500 | Bills payable | 25,500 | ||||
| Machinery | 48,000 | ||||||
| Investment | 42,000 | Babu's Capital A/c (Machinery taken over) | 45,000 | ||||
| Freehold Property | 50,500 | Ashok's Capital A/c (Investment) | 40,000 | ||||
| Bank A/c (Sundry Creditors) | 18,600 | Chetan's Capital A/c (Freehold Property taken over) | 55,000 | ||||
| Bank A/c (Realisation Expenses) | 3,000 | ||||||
| Bank A/c | |||||||
| Debtors | 56,500 | ||||||
| Capital A/c | Stock | 36,500 | 93,000 | ||||
| Ashok | 13,950 | ||||||
| Babu | 9,300 | Bank A/c (office computer) | 9,000 | ||||
| Chetan | 4,650 | 27,900 | |||||
| 287,500 | 287,500 | ||||||
| Partner's Capital A/c | |||||||
| Particulars | Ashok’s Capital A/c | Babu’s Capital A/c | Chetan’s Capital A/c | Particulars | Ashok’s Capital A/c | Babu’s Capital A/c | Chetan’s Capital A/c |
| Realisation A/c (assets taken over) | 40,000 | 45,000 | 55,000 | Balance b/d | 70,000 | 55,000 | 27,000 |
| Current A/c | 10,000 | 5,000 | 3,000 | ||||
| Bank | 20,350 | ||||||
| Bank | 53,950 | 24,300 | 0 | Realisation A/c (Profit) | 13,950 | 9,300 | 4,650 |
| 93,950 | 69,300 | 55,000 | 93,950 | 69,300 | 55,000 | ||
| Bank A/c | |||||||
| Date | Particulars | Amount (in Rs) | Date | Particulars | Amount (in Rs) | ||
| Bal B/d | 7,500 | Realisation A/c | 3,000 | ||||
| Realisation A/c (assets) | 93,000 | Realisation A/c (Creditors) | 18,600 | ||||
| Realisation A/c (computer) | 9,000 | Babu's Loan | 30,000 | ||||
| Chetan's Capital A/c (Deficiency) | 20,350 | By Capital A/c's | |||||
| Ashok | 53,950 | ||||||
| Babu | 24,300 | ||||||
| Chetan | 0 | 78,250 | |||||
| 129,850 | 129,850 | ||||||
Regards