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Arnab, Ragini and Dhrupad are partners sharing profits in the ratio of 3 : 1 : 1. On 31st March, 2023, they decided to dissolve their firm. On that date their Balance Sheet was as under:

Balance Sheet of Arnab, Ragini and Dhrupad as at 31st March, 2022

Liabilities Assets  

Creditors

Loan by Pronoy (Arnab’s Brother)

Loan by Dhrupad

workmen Compensation Reserve

Investment Fluctuation Reserve

Capital A/cs:

Arnab

Ragini

Dhrupad

60,000

95,000

1,00,000

50,000

50,000

2,75,000

2,00,000

1,70,000

Bank

Debtors

Less: PDD

Stock

Investments

Building

Profit and Loss A/c

Advertisement Suspense A/c

 

1,70,000 20,000

50,000

 

1,50,000

1,50,000

2,50,000

3,00,000

50,000

50,000

  10,00,000     10,00,000

The assets were realised and the liabilities were paid as under:

(i) Arnab agreed to pay his brother Pronoy’s loan

(ii) Investments realised 20% less.

(iii) Creditors were paid at 10% less.

(iv) Building was sold for ₹ 3,55,000. Commission paid was ₹ 5,000.

(v) 50% of the stock was taken by Ragini at market price which was 20% less than the book value and the remaining was sold at market price.

(vi) Dissolution expenses were ₹ 8,000, ₹ 3,000 were to be borne by the firm and the balance by Dhrupad. The expenses were paid by him.

Prepare Realisation Account, Bank Account and Partner’s Capital Accounts.

Anurag Pathak Changed status to publish February 11, 2024
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