A and B were partners sharing profits and losses in 2 : 1. Their Balance Sheet as at 31st March, 2023 was as follows:
A and B were partners sharing profits and losses in 2 : 1. Their Balance Sheet as at 31st March, 2023 was as follows:
| Liabilities | ₹ | Assets | ₹ |
| Sundry Creditors | 2,10,000 | Cash at Bank | 60,000 |
| A’s Loan @ 12% p.a. | 50,000 |
Sundry Debtors 1,80,000 Less: Provision for Doubtful Debts 10,000 |
1,70,000 |
| General Reserve | 90,000 | Stock | 2,00,000 |
|
A’s Capital B’s Capital |
4,00,000 2,50,000 |
Investments | 1,50,000 |
| Â | Â | Plant & Machinery | 4,00,000 |
| Â | Â | B’s Loan | 20,000 |
| Â | 10,00,000 | Â | 10,00,000 |
Partners decide to dissolve the firm on the above date. Assets and liabilities realised as follows:
(i) Plant & Machinery was taken over by A at 60% of the book value.
(ii) Investments were taken over by B at 120%.
(iii) Sundry Creditors were paid off by giving them stock at 75% of the books value and the balance in cash.
(iv) Debtors realised 20% less of the amount due from them.
(v) A’s loan was paid off with interest for six months.
(vi) Realisation expenses amounted to ₹ 1,000.
You are required to prepare:
(a) Realisation Account
(b) A’s Loan Account and B’s Loan Account.
(c) Partner’s Capital Accounts, and
(d) Bank Account.
[Ans. Loss on Realisation ₹ 2,10,000; Final Payment to A ₹ 80,000 and B ₹ 30,000; Total of Bank Account ₹ 2,24,000.]
Anurag Pathak Changed status to publish September 22, 2024
