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Amal, Amolak and Bhaskar sharing profits in the ratio of 2 : 2 : 1 agreed upon dissolution of their partnership on 31st March, 2023 on which date their Balannce Sheet was as under:

Liabilities Assets

Capital A/c –  Amal

Capital A/c –  Amolak

Reserves

Workmen Compensation Reserve

Investments Fluctuation Reserve

Creditors

Employee’s Provident Fund

1,20,000

90,000

70,000

35,000

1,500

55,500

6,000

Fixed Assets

Insurance Claim Receivable

Debtors

Less: PDD

Stock

Investments

Bankj Capital A/c – Bhaskar

1,50,000

75,000

28,500

24,000

24,000

70,500

6,000

  3,78,000   3,78,000

(i) Investments were taken by Amal at ₹ 18,000; Creditors of ₹ 30,000 were taken by Amolak who has agreed to settle account with them at ₹ 29,700. Remaining Creditors were paid at ₹ 22,500.

(ii) Insurance claim received ₹ 60,000 and Fixed Assets realised ₹ 2,10,000.

(iii) Stock and Debtors realised ₹ 21,000 and ₹ 27,000 respectively.

(iv) One customer, whose account was written off as bad, paid ₹ 2,400 besides ₹ 27,000 stated above.

(v) There was one unrecorded asset valued at ₹ 9,000, half of which was given for an unrecorded liability of ₹ 15,000 in settlement of claim of ₹ 7,500 and remaining half was sold in the market which realised ₹ 3,900.

Amolak took the responsibility of completing dissolution and he is allowed salary of ₹ 1,200 per month. Actual Realisation Expenses amounting to ₹ 3,300 were paid by the firm but were to be borne by Amolak. Dissolution was completed and final payments were emade on 31st July, 2022.

Prepare Realisation Account, partner’s Capital Account and Bank Account.

Anurag Pathak Changed status to publish February 10, 2024
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