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Angad and Bishan are equal partners of a firm, Balance Sheet of which is given below as at 31st March, 2023 the date on which they decide to dissolve the partnership:

Liabilities   Assets

Capital A/cs:

Angad

Bishan

General Reserve

Loan by Angad

Creditors

 

1,00,000

80,000

 

 

1,80,000

16,000

6,000

28,000

Investments

Machinery

Furniture

Debtors

Stock

Bank

90,000

30,000

24,000

16,000

48,000

22,000

    2,30,000   2,30,000

Following transactions took place at the time of dissolution:

(i) Assets realised as follows:

Stock – ₹ 44,000; Debtors – ₹ 15,000; Machinery – ₹ 32,000; Investments – ₹ 70,000.

(ii) Bishan took Furniture at ₹ 18,000.

(iii) Angad agreed to accept ₹ 5,000 in settlement of his Loan Account.

(iv) Angad was entitled to receive ₹ 5,000 as remuneration for completing the dissolution work and was to bear the realisation expenses. The expenses of realisation ₹ 6,000 were paid by Angad.

Prepare Realisation Account, Capital Accounts of Partners, Angad’s Loan Account and Bank Account.

Anurag Pathak Changed status to publish February 10, 2024
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