A and B are partners in a firm sharing profits and losses in the ratio of 3 : 2. On 31st March 2023, their Balance Sheet was as follows:
A and B are partners in a firm sharing profits and losses in the ratio of 3 : 2. On 31st March 2023, their Balance Sheet was as follows:
| Liabilities | ₹ | Assets | ₹ |
| Creditors
Loan by Mrs. A Loan by B Reserve A’s Capital B’s Capital |
38,000 10,000 15,000 5,000 10,000 8,000 |
Cash at Bank
Stock Debtors Furniture Plant Investments Profit & Loss A/c |
11,500 6,000 19,000 4,000 28,000 10,000 7,500 |
| 86,000 | 86,000 |
The firm was dissolved on 31st March, 2023 and both the partners agreed to the following:
(a) A took investments at an agreed value of ₹ 8,000. He also agreed to settle Loan by Mrs. A.
(b) Other assets realised as: Stock – ₹ 5,000; Debtors – ₹ 18,500; Furniture – ₹ 4,500; Plant – ₹ 25,000.
(c) Expenses of realistion came to ₹ 1,600.
(d) Creditors agreed to accept ₹ 37,000 in full settlement of their claims.
Prepare Realisaiton Account, Partner’s Capital Accounts and Bank Account.
[Ans.: Loss on Realisation – ₹ 6,600; A to be paid – ₹ 6,540; B to be paid – ₹ 4,360; Total of Bank Account – ₹ 64,500.]
Anurag Pathak Changed status to publish July 31, 2023
