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Basu, Bose and Chitra are partners sharing profits in the ratio of 5 : 3 : 2. Their Balance Sheet as at 31st March, 2023 was as under:

Liabilities Assets

Trade Creditors

Workmen Compensation Reserve

Employees’ Provident Fund

Loan from Mrs. Basu

Basu’s Capital

Bose’s Capital

Chitra’s Capital

Basu’s Current A/c

Bose’s Current A/c

Profit and Loss A/c

60,000

10,000

5,000

5,000

2,00,000

1,50,000

1,50,000

25,00

17,000

50,000

Bank

Debtors

Stock

Furniture

Patents

Building

Chitra’s Current A/c

70,000

50,000

60,000

1,25,000

35,000

3,20,000

12,000

  6,72,000   6,72,000

The firm was dissolved on the above mentioned date.

Following transactions took place at the time of dissolution:

(i) Realisation Expenses were to be borne by Basu for which he was to get ₹ 10,000. Realisation Expenses of ₹ 12,000 were paid out of firm’s Bank Account.

(ii) Bose took stock for ₹ 55,000 and Chitra took Building for ₹ 4,00,000.

(iii) Other assets realised as follows: Debtors ₹ 48,000; Furniture ₹ 97,000.

(iv) Trade Creditors were settled by paying ₹ 55,000.

(v) Accounts of partners were settled after realising assets and paying outside liabilities.

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

Anurag Pathak Changed status to publish February 11, 2024
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