Q.5 X, Y and Z were partners sharing profits in the ratio of . Following was their balance sheet as at 31st March ,2016 :
Liabilities | Amount Rs. |
Assets |
Amount Rs. |
Creditors Workmen comp. Reserve Bank Loan X's Loan Capitals X 6,00,000 Y 4,50,000 Z 1,00,000 |
1,50,000 40,000 40,000 50,000 11,50,000 14,30,000 |
Fixed Assets Debtors Investments Stock Patents Advertisement Sups A/c Prepaid Expenses Cash |
9,00,000 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.
Dear Student,
Profit sharing ratio is 4:3:1
Regards,
Realisation A/c | |||||
Date | Particulars | Amount (in Rs) | Date | Particulars | Amount (in Rs) |
31.03.2016 | Fixed Assets A/c | 900,000 | 31.03.2016 | Creditors | 150,000 |
Debtors A/c | 280,000 | Workmen Compensation Reserve A/c | 40,000 | ||
Investments A/c | 30,000 | Bank Loan A/c | 40,000 | ||
Stock A/c | 140,000 | X's Loan A/c | 50,000 | ||
Patents A/c | 10,000 | Cash A/c | |||
Advertisement Suspense A/c | 20,000 | -- Fixed Assets A/c | 1,080,000 | ||
Prepaid Expenses A/c | 12,100 | -- Debtors A/c | 230,000 | ||
Cash A/c | -- Unrecorded Investment | 16,000 | |||
-- Bank Loan (40,000+40,000*9% for 3 months) | 40,900 | ||||
-- Workmen Compensation | 24,000 | ||||
X's Capital A/c (Remuneration) | 25,000 | ||||
Profit on realisation transferred to Partners' Capital | |||||
X's Capital A/c | 62,000 | ||||
Y's Capital A/c | 46,500 | ||||
Z's Capital A/c | 15,500 | ||||
1,606,000 | 1,606,000 |
Capital A/c | |||||||||
Date | Particulars | X's Capital A/c | Y's Capital A/c | Z's Capital A/c | Date | Particulars | X's Capital A/c | Y's Capital A/c | Z's Capital A/c |
31.03.2016 | Bank A/c | 687,000 | 496,500 | 115,500 | 31.03.2016 | Balance b/d | 600,000 | 450,000 | 100,000 |
Realisation A/c (Profit) | 62,000 | 46,500 | 15,500 | ||||||
Realisation A/c (Remuneration) | 25,000 | ||||||||
687,000 | 496,500 |
115,500
|
687,000 | 496,500 | 115,500 |
Bank A/c | |||||
Date | Particulars | Amount (in Rs) | Date | Particulars | Amount (in Rs) |
31.03.2016 | Balance b/d | 37,900 | 31.03.2016 | Realisation A/c (liabilities) | |
Realisation A/c (Assets) | -- Bank Loan (40,000+40,000*9% for 3 months) | 40,900 | |||
-- Fixed Assets A/c | 1,080,000 | -- Workmen Compensation | 24,000 | ||
-- Debtors A/c | 230,000 | X's Capital A/c | 687,000 | ||
-- Unrecorded Investment | 16,000 | Y's Capital A/c | 496,500 | ||
Z's Capital A/c | 115,500 | ||||
1,363,900 | 1,363,900 |
Profit sharing ratio is 4:3:1
Regards,