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A, B and C sharing profits and losses in the ratio of 3 : 2 : 1 agreed to dissolve their partnership firm on 31st March, 2024. A was asked to realise the assets and pay off liabilities. He had to bear the realisation expenses for which he was promised a lump sum amount of ₹ 3,000 Their financial position on that date was as follows:
Liabilities ₹ Assets ₹
Accounts Payable 40,000 Goodwill 20,000
Mortgage Loan 30,000 Lease 75,000
Advance from B 25,000 Patents 6,000
Employee’s Saving Bank 16,000 Stock 50,000
Capitals: A B 80,000 66,000 Accounts Receivable 25,000
Equipment 20,000
300 Shares in X Ltd. 36,000
Cash 13,000
C’s Capital 12,000
2,57,000 2,57,000
  Information: (i) Stock was valued at ₹ 40,000 and this was taken over by A and B equally. Lease realised ₹ 1,10,000; Equipments at ₹ 18,000; and Accounts Receivable at ₹ 20,000 and other assets proved valueless. (2) Actual realisation expenses paid by A amounted to ₹ 1,800. (3) There was an unrecorded asset of ₹ 10,000 which was taken over by A at ₹ 12,000. (4) A bill of ₹ 3,200 due for sales tax was received during the course of realisation and this was also paid. (5) Sunil, an old customer whose account was written off as bad in the previous year, paid ₹ 2,500 which is not included in the above stated accounts receivable. (6) Market value of the Shares in X Ltd. is ₹ 100 per share. Half the shares were sold in the market subject to a commission of 2% and the balance half were divided by all the partners in their profit sharing ratio. Prepare necessary accounts. [Ans. Loss on Realisation ₹ 6,000; Cash brought in by C ₹ 15,500; Payment to A ₹ 40,500 and B ₹ 39,000; Total of Cash A/c ₹ 1,93,700.]
Anurag Pathak Answered question 3 days ago
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