Mrs. Rita Chowdhary and Miss Shobha are partners in a firm, ‘Fancy Garments Exports’ sharing profits and losses equally. On 1st April, 2024, the Balance Sheet of the firm was as follows:
Mrs. Rita Chowdhary and Miss Shobha are partners in a firm, ‘Fancy Garments Exports’ sharing profits and losses equally. On 1st April, 2024, the Balance Sheet of the firm was as follows:
| Liabilities | ₹ | Assets | ₹ |
| Sundry Creditors | 75,000 | Bank | 36,000 |
| Bills Payable | 30,000 | Stock | 75,000 |
| Mr. Chowdhary’s Loan | 15,000 |
Book Debts 66,000 Less: Provision for Doubtful Debts 6,000 |
60,000 |
| Reserve Fund | 24,000 | Plant & Machinery | 45,000 |
| Mrs. Rita Chowdhary’s Capital | 90,000 | Land & Buildings | 48,000 |
| Miss Shobha’s Capital | 30,000 | Â | Â |
| Â | 2,64,000 | Â | 2,64,000 |
The firm was dissolved on the date given above. The following transactions took place:
(i) Mrs. Rita Chowdhary undertook to pay Mr. Chowdhary’s Loan and took over 50 percent of stock at a discount of 20 percent.
(ii) Book-debts realised ₹ 54,000; balance of the stock was sold off at a profit of 30 percent on cost.
(iii) Sundry Creditors were paid out at a discount of 10 percent. Bills Payable were paid in full.
(iv) Plant and Machinery realised ₹ 75,000 and Land and Buildings ₹ 1,20,000.
(v) Mrs. Rita Chowdhary took over the goodwill of the firm at a valuation of ₹ 30,000.
(vi) Realisation expenses were ₹ 5,250.
Show the Realisation Account, Bank Account and Partner’s Capital Accounts in the books of the firm.
[Ans. Gain on Realisation ₹ 1,32,000; Final Payments :- Rita ₹ 1,23,000 and Shobha ₹ 1,08,000, Total of Bank A/c ₹ 3,33,750.]
Anurag Pathak Answered question September 22, 2024
