Q.5 X, Y and Z were partners sharing profits in the ratio of  1 2 ,   3 8 , 1 8  . 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,
 
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,

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