Shilpa,Meena and Nanda decided to dissolve their partnershipon March 31,2006. Their profit sharing ratio was 3:2:1and their Balance Sheet was as under:
Balance Sheet of Shilpa, Meena and Nanda as on March 31, 2006
Liabilities
Amount
Rs
Assets
Amount
Rs
Capitals:
Land
81,000
Shilpa
80,000
Stock
56,760
Meena
40,000
Debtors
18,600
Bank loan
20,000
Nanda’s Capital Account
23,000
Creditors
37,000
Cash
10,840
Provision for doubtful debts
1,200
General Reserve
12,000
1,90,200
1,90,200
The stock of value of Rs 41,660 are taken over by Shilpa for Rs 35,000 and she agreed to discharge bank loan.The remaining stock was sold at Rs 14,000 and debtors amounting to Rs 10,000 realised Rs 8,000. land is soldfor Rs 1,10,000. The remaining debtors realised 50%at their book value. Cost of Realisation amounted toRs 1,200. There was a typewriter not recorded in the books worth Rs 6,000 whichwere taken over by one of the Creditors at this value. Prepare Realisation Account.
Shilpa,Meena and Nanda decided to dissolve their partnershipon March 31,2006. Their profit sharing ratio was 3:2:1and their Balance Sheet was as under:
| Balance Sheet of Shilpa, Meena and Nanda as on March 31, 2006
|
| |||
| Liabilities | Amount Rs | Assets | Amount Rs | |
| Capitals: |
| Land | 81,000 | |
| Shilpa | 80,000 | Stock | 56,760 | |
| Meena | 40,000 | Debtors | 18,600 | |
| Bank loan | 20,000 | Nanda’s Capital Account | 23,000 | |
| Creditors | 37,000 | Cash | 10,840 | |
| Provision for doubtful debts | 1,200 |
|
| |
| General Reserve | 12,000 |
|
| |
|
| 1,90,200 |
| 1,90,200 | |
|
|
|
|
| |
The
| In the books of Shilpa, Meena and Nanda
|
| ||||||||
| Realisation Account |
| ||||||||
| Dr. |
| Cr. |
| ||||||
| Particulars | Amount Rs | Particulars | Amount Rs | ||||||
| Land | 81,000 | Bank Loan | 20,000 | ||||||
| Stock | 56,760 | Creditors | 37000 | ||||||
| Debtors | 18,600 | Provision for doubtful debts | 1,200 | ||||||
| Shilpa’s Capital A/c | 20,000 | Shilpa’s Capital A/c (Stock) | 35,000 | ||||||
| Cash : |
| Cash: |
| ||||||
| Creditors | 31000 |
| Stock | 14000 |
| ||||
| Realisation Expenses | 1,200 | 32200 | Debtors | 12300 | |||||
| Profit transferred to |
| Land | 1,10,000 | 1,36,300 | |||||
| Shilpa’s Capital A/c | 10,470 |
|
|
|
|
| |||
| Meena’s Capital A/c | 6,980 |
|
|
| |||||
| Nanda’s Capital A/c | 3,490 | 20,940 |
|
| |||||
|
| 2,29,500 |
| 2,29,500 | ||||||
|
|
|
|
| ||||||
| Partners’ Capital Account |
| ||||||||
| Dr. |
| Cr. |
| ||||||
| Particulars | Shilpa | Meena | Nanda | Particulars | Shilpa | Meena | Nanda | ||
| Balance b/d | – | – | 23,000 | Balance b/d | 80,000 | 40,000 | – | ||
| Realisation | 35,000 |
|
| General Reserve | 6,000 | 4,000 | 2,000 | ||
| (Stock) |
|
|
| Realisation | 20,000 |
|
| ||
| Cash | 81,470 | 50,980 |
| (Bank Loan) |
|
|
| ||
|
|
|
|
| Realisation (Profit) | 10,470 | 6,980 | 3,490 | ||
|
|
|
|
| Cash |
|
| 17,510 | ||
|
| 1,16,470 | 50,980 | 23,000 |
| 1,16,470 | 50,980 | 23,000 | ||
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| ||
| Cash Account |
| |||||
| Dr. |
| Cr. |
| |||
| Particulars | Amount Rs | Particulars | Amount Rs | |||
| Balance b/d | 10,840 | Realisation (Expenses) | 32,200 | |||
| Realisation (Assets) | 1,36,300 | Shilpa’s Capital A/c | 81,470 | |||
| Nanda’s Capital A/c | 17,510 | Meena’s Capital A/c | 50,980 | |||
|
|
|
|
| |||
|
| 1,64,650 |
| 1,64,650 | |||
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