Ashu and Harish are partners sharing profit and losses as 3:2. They decided to dissolve the firm on December 31, 2012. Their balance sheet on the above date was:
Balance Sheet of Ashu and Harish as on December 31, 2012
Liabilities
Amount
Rs
Assets
Amount
Rs
Capitals:
Building
80,000
Ashu
1,08,000
Machinery
70,000
Harish
54,000
1,62,000
Furniture
14,000
Creditors
88,000
Stock
20,000
Bank overdraft
50,000
Investments
60,000
Debtors
48,000
Cash in hand
8,000
3,00,000
3,00,000
Ashu is to take over the building at Rs 95,000 and Machinery and Furniture is take over by Harish at value of Rs 80,000. Ashu agreed to pay Creditor and Harish agreed to meet Bank overdraft. Stock and Investments are taken by both partner in profit sharing ratio. Debtors realised for Rs 46,000, expenses of Realisation amounted to Rs 3,000. Prepare necessary ledger Account.
Ashu and Harish are partners sharing profit and losses as 3:2. They decided to dissolve the firm on December 31, 2012. Their balance sheet on the above date was:
| Balance Sheet of Ashu and Harish as on December 31, 2012
|
| ||||
| Liabilities | Amount Rs | Assets | Amount Rs | ||
| Capitals: |
|
| Building | 80,000 | |
| Ashu | 1,08,000 |
| Machinery | 70,000 | |
| Harish | 54,000 | 1,62,000 | Furniture | 14,000 | |
| Creditors |
| 88,000 | Stock | 20,000 | |
| Bank overdraft |
| 50,000 | Investments | 60,000 | |
|
|
|
| Debtors | 48,000 | |
|
|
|
| Cash in hand | 8,000 | |
|
|
| 3,00,000 |
| 3,00,000 | |
|
|
|
|
|
| |
Ashu is to take over the building at Rs 95,000 and Machinery and Furniture is take over by Harish at value of Rs 80,000. Ashu agreed to pay Creditor and Harish agreed to meet Bank overdraft. Stock and Investments are taken by both partner in profit sharing ratio. Debtors realised for Rs 46,000, expenses of Realisation amounted to Rs 3,000. Prepare necessary ledger Account.
| Books of Ashu and Harish
Realisation Account |
| ||||||
| Dr. |
| Cr. |
| ||||
| Particulars | Amount Rs | Particulars | Amount Rs | ||||
| Building | 80,000 | Creditors | 88,000 | ||||
| Machinery | 70,000 | Bank overdraft | 50,000 | ||||
| Furniture | 14,000 | Ashu’s Capital A/c (Assets taken) | 1,43,000 | ||||
| Stock | 20,000 | Harish’s Capital A/c (Assets taken) | 1,12,000 | ||||
| Investments | 60,000 | Cash (Debtors) | 46,000 | ||||
| Debtors | 48,000 |
|
| ||||
| Ashu’s Capital A/c (Creditors) | 88,000 |
|
| ||||
| Harish’s Capital A/c (Bank Overdraft) | 50,000 |
|
| ||||
| Cash (Expenses) | 3,000 |
|
| ||||
| Profit transferred to |
|
|
| ||||
| Ashu’s Capital A/c | 3,600 |
|
|
| |||
| Harish’s Capital A/c | 2,400 | 6,000 |
|
| |||
|
| 4,39,000 |
| 4,39,000 | ||||
|
|
|
|
| ||||
| Partners’ Capital Account |
| |||||||
| Dr. |
| Cr. |
| |||||
| Particulars | Ashu | Harish | Particulars | Ashu | Harish | |||
| Realisation (Assets taken) | 1,43,000 | 1,12,000 | Balance b/d | 1,08,000 | 54,000 | |||
| Cash | 56,600 |
| Realisation (Liabilities) | 88,000 | 50,000 | |||
|
|
|
| Realisation (Profit) | 3,600 | 2,400 | |||
|
|
|
| Cash |
| 5,600 | |||
|
| 1,99,600 | 1,12,000 |
| 1,99,600 | 1,12,000 | |||
|
|
|
|
|
|
| |||
| Cash Account |
| |||||
| Dr. |
| Cr. |
| |||
| Particulars | Amount Rs | Particulars | Amount Rs | |||
| Balance b/d | 8,000 | Realisation (Expenses) | 3,000 | |||
| Realisation (Debtors) | 46,000 | Ashu’s Capital A/c | 56,600 | |||
| Harish’s Capital A/c | 5,600 |
|
| |||
|
| 59,600 |
| 59,600 | |||
|
|
|
|
| |||
NOTE: As per the solution, the Profit on Realisation is Rs 6,000; however, the answer mentioned in the book is Rs 14,000.
Working Notes:
|
| Ashu | Harish |
| Building | 95,000 |
|
| Machinery and Furniture |
| 80,000 |
| Stock (3:2) | 12,000 | 8,000 |
| Investment (3:2) | 36,000 | 24,000 |
|
| Rs 1,43,000 | Rs 1,12,000 |