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Balance Sheet of a firm as at 31st March, 2023 was as under:

Liabilities Assets

Simran’s Capital

Pooja’s Capital

Shweta’s Capital

Sundry Creditors

Profit & Loss A/c

50,000

40,000

30,000

20,000

15,000

Machinery

Investments

Sundry Debtors

Cash at Bank

Stock

80,000

20,000

10,000

30,000

15,000

  1,55,000   1,55,000

The partnership was dissolved on the above date. You are given following information about dissolution:

(i) Simran took investments at 5% less than the book value.

(ii) Other Assets realised as follows:

Machinery ₹ 90,000; Debtors ₹ 9,000 and Stock ₹ 14,000.

(iii) Creditors were paid at a discount of 5%.

(iv) Dissolution expenses amounted to ₹ 2,000.

You are required to prepare:

(a) Realisation Account,

(b) Capital Accounts of the partners, and

(c) Bank Account.

Anurag Pathak Changed status to publish February 10, 2024
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