sanjay , tarun and vineet shared profit in the ratio 3:2:1. on december 31,2006 there balance sheet was as follows:

liabilities:

sanjay capital 1,00,000 , tarun capital 1,00,000 , vineet capital 70,000 , creditors 80,000 , bills payable 30,000

assets:

plant 90,000 , debtors 60,000 , furniture 32,000 , stock 60,000 , investment 70,000 , bills receivable 36,000 , cash in hand 32,000

on this date the firm was dissolved .. sanjay was appointed to realise the assets . sanjay was to receive 6% commission on the sale of assets and was bear all expenses of realisation .

sanjay realised the assets as fllow : plant rs. 72,000 , debtors rs. 54,000 , furniture rs. 18,000 , stock rs. 90% of the book value , investment rs 76,000 and bills receivable rs. 31,000 . expenses of the realisation amounted to rs. 4,500 .

prepare realisation account, capital accounts and cash accounts


Realisation Account

 

Cr.

 

Particulars

Amount

Rs

Particulars

Amount

Rs

 Plant

90,000

Creditors

80,000

 Sundry debtors

60,000

Bill payables

30,000

Furniture

32,000

Bank A/c

 

Stock

60,000

 -Plant   72,000 

 

Investment

70,000

 -Debtors   54,000 

 

Bill receivables

 

36,000

 -Furniture  18,000 

 

Bank A/c:

 

 

 -Stock   54,000

 

 

Creditors 

 Bill payable

80,000

30,000

1,10,000

 -Investment  76,000

 

 

Sanjay’s capital A/c

18,300

 -Bill receivable 31000

 

3,05,000

 (commission)

 

Loss transferred to capital A/c:

 

 

 

  Sanjay:  30,650 

 

 

 

 

  Tarun  :  20,433

 

 

 

 

  Vineet :  10,217

 

 61,300

 

4,76,300

 

4,76,300

 

 

 

 

  Bank Account

Dr.

 .

Cr.

Particulars

Amount

Rs

Particulars

Amount

Rs

 Balance b/d

  32,000

 Realisation A/c

 

 Realisation A/c

  --Investments  76,000

 

  --Creditors  80,000

  --Bill payable  30,000

 

1,10,000

  --Debtors   54,000

  --Plant   72,000

  --Furniture  18,000

  --Stock  54,000

 

 

3,05,000

Sanjay’s Capital A/c

Tarun’s Capital A/c

Vineet’s Capital A/c

87,650

79,567

59,783

  --Bill Receivable 31,000

 

3,37,000

 

3,37,000

 

 

 

 

Partners’ Capital Accounts

Dr.

 

Cr.

Particulars

Sanjay

Tarun

Vineet

Particulars

Sanjay

Tarun

Vineet

Realisation A/c

30,650

20,433

10,217

Balance b/d

1,00,000

1,00,000

70,000

 (loss distributed in ratio of 3:2:1)

 

 

 

Realisation A/c (commission)

18,300

--

--

Bank A/c

87,650

79,567

59,783

 

 

 

 

(balancing figure)

 

 

 

 

 

 

 

 

  1,18,300 1,00,000 70,000 1,18,3001,00,00070,000 

 

1.Calculation of amount of commission :

 sum total of assets realised = Rs. 3,05,000

 commission = 3,05,000*6/100 =Rs. 18,300

2. Since, Sanjay will bear the amount of expenses, then it is assumed that he had paid them so, no entry is passed accordingly.

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Realisation A/c Particulars Rs. Rs. Particulars Rs. Rs. To Plant machinery 90,000 By creditors A/c 80,000 To debtors A/c 60,000 By bills payable A/c 30,000 To furniture A/c 32,000 To Stock A/c 60,000 By cash A/c To investment A/c 70,000 Plant To bills receivable A/c 36,000 Debtors Furniture To Sanjay's capital A/c 18,300 Stock (90% of book value) (Commission @ 6% Investments on sales on assets) 4,500 Bills receivable To Sanjay's capital A/c By realisation loss (Realisation expenses) transferred to partner's To cash A/c Capital A/c creditors 80,000 Sanjay:65800*3/6 32,900 Bills payable 30,000 1,10,000 Tarun: 65800*2/6 21,934 Vineet: 65800*1/6 10,966 65800 4,80,800 4,80,800

Partner's Capital A/c Particulars Sanjay Tarun Vineeth Particulars Sanjay Tarun Vineeth To Realisation A/c 32,900 21,934 10,966 By Balance B/d 1,00,000 1,00,000 70,000 (Loss trasfered) By Realisation A/c 18,300 (Comission) By Realisation A/c 4,500 To Cash A/c 89,900 78,066 59,034 ( Realisation expenses) ( final balance paid) 1,22,800 1,00,000 70,000 1,22,800 1,00,000 70,000

Cash A/c Particulars Rs. Rs. Particulars Rs. Rs. To balance b/d 32,000 By Realisation a/c To realisation A/c Creditors 80,000 Plant 72,000 Bills payable 30,000 1,10,000 Debtors 34,000 89,900 Furniture 18,000 By Sanjay's capital A/c 78,066 stock 54,000 By Tarun's Capital A/c 59,034 Investments 76,000 By Vineeth's Capital A/c Bills receivables 31,000 3,05,000 3,37,000 3,37,000

If you have still more doubt Please let me know :)

  • 0
Realisation A/c Particulars Rs. Rs. Particulars Rs. Rs. To Plant machinery 90,000 By creditors A/c 80,000 To debtors A/c 60,000 By bills payable A/c 30,000 To furniture A/c 32,000 To Stock A/c 60,000 By cash A/c To investment A/c 70,000 Plant To bills receivable A/c 36,000 Debtors Furniture To Sanjay's capital A/c 18,300 Stock (90% of book value) (Commission @ 6% Investments on sales on assets) 4,500 Bills receivable To Sanjay's capital A/c By realisation loss (Realisation expenses) transferred to partner's To cash A/c Capital A/c creditors 80,000 Sanjay:65800*3/6 32,900 Bills payable 30,000 1,10,000 Tarun: 65800*2/6 21,934 Vineet: 65800*1/6 10,966 65800 4,80,800 4,80,800

Partner's Capital A/c Particulars Sanjay Tarun Vineeth Particulars Sanjay Tarun Vineeth To Realisation A/c 32,900 21,934 10,966 By Balance B/d 1,00,000 1,00,000 70,000 (Loss trasfered) By Realisation A/c 18,300 (Comission) By Realisation A/c 4,500 To Cash A/c 89,900 78,066 59,034 ( Realisation expenses) ( final balance paid) 1,22,800 1,00,000 70,000 1,22,800 1,00,000 70,000

Cash A/c Particulars Rs. Rs. Particulars Rs. Rs. To balance b/d 32,000 By Realisation a/c To realisation A/c Creditors 80,000 Plant 72,000 Bills payable 30,000 1,10,000 Debtors 34,000 89,900 Furniture 18,000 By Sanjay's capital A/c 78,066 stock 54,000 By Tarun's Capital A/c 59,034 Investments 76,000 By Vineeth's Capital A/c Bills receivables 31,000 3,05,000 3,37,000 3,37,000

If you have still more doubt Please let me know :)

  • 1

Realisation A/c

Particulars

Rs.

Rs.

Particulars

Rs.

Rs.

To Plant machinery

90,000

By creditors A/c

80,000

To debtors A/c

60,000

By bills payable A/c

30,000

To furniture A/c

32,000

To Stock A/c

60,000

By cash A/c

To investment A/c

70,000

Plant

To bills receivable A/c

36,000

Debtors

Furniture

To Sanjay's capital A/c

18,300

Stock (90% of book value)

(Commission @ 6%

Investments

on sales on assets)

4,500

Bills receivable

To Sanjay's capital A/c

By realisation loss

(Realisation expenses)

transferred to partner's

To cash A/c

Capital A/c

creditors

80,000

Sanjay:65800*3/6

32,900

Bills payable

30,000

1,10,000

Tarun: 65800*2/6

21,934

Vineet: 65800*1/6

10,966

65800

4,80,800

4,80,800

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I typed in Excel But it dint come properly So please Pardon me.. I hope u understand :)

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