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Dev, Narain and Manoj are sharing profits as 2 : 3 : 5 and their Balance Sheet as at 31st March, 2022 is as follows:

Liabilities Assets

Capital A/cs:

Dev

Narain

Manoj

Employee’s Provident Fund

General Reserve

Bank Loan

Loan by Dev

Sundry Creditors

 

2,10,000

2,70,000

3,30,000

80,000

10,000

2,60,000

3,90,000

2,00,000

Building

Equipments

Stock

Sundry Debtors

Cash at Bank

Profit and Loss A/c

Advertisement Suspense A/c

6,00,000

1,20,000

4,80,000

3,60,000

1,80,000

6,000

4,000

  17,50,000   17,50,000

The firm was dissolved on the above date. Close the books of the firm on the basis of the following information:

(i) An unrecorded asset was realised at ₹ 45,000.

(ii) A debt of ₹ 1,50,000 previously written off as bad was received.

(iii) Sundry Creditors took a computer included in Equipments, in part payments of ₹ 1,20,000. They were paid the balance at 10% discount. The remaining Equipments were sold for ₹ 18,000.

(iv) Building realised ₹ 5,85,000 and Sundry Debtors realised ₹ 3,30,000.

(v) Stock was sold for ₹ 2,30,000 under the supervision of Bank. The amount realised from sale of stock and further ₹ 30,000 was paid to Bank to settle its loan amount.

(vi) Narain was to get a remuneration of ₹ 36,000 for competing the dissolution process and he had to bear Reasliation

Anurag Pathak Changed status to publish February 10, 2024
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