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Neha, Anita and Sonia were partners sharing profits and losses in the ratio of 2 : 2 : 1. On 1st April, 2022, their Balance Sheet was as follows:

Liabilities Assets  

Capital A/cs:

Neha

Anita

Sonia

Reserve

Creditors

 

30,000

24,000

12,000

15,000

24,000

Cash at Bank

Debtors

Less: PDD

Stock

Furniture

Building

Advertisement Suspense

 

16,000

4,000

  24,400

 

15,600

12,000

4,000

44,000

5,000

  1,05,000     1,05,000

The firm was dissolved on that date. The assets realised were as follows:

Debtors ₹ 14,000
Stock ₹ 10,000
Furniture ₹ 2,000
Building ₹ 50,000

Creditors were settled for ₹ 22,000. It was noticed that a liability of ₹ 6,000 for damages existed which had to be paid. Realisation Expenses amounted to ₹ 2,000.

Prepare Realisation Account, Partner’s Capital Account and Bank Account to close the books of the firm.

Anurag Pathak Changed status to publish February 10, 2024
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