Patil, Raman and Deep commenced business on 1st April, 2021 with capitals of Patil – ₹ 1,50,000
Patil, Raman and Deep commenced business on 1st April, 2021 with capitals of Patil – ₹ 1,50,000; Raman – ₹ 1,00,000; Deep – ₹ 50,000. Profits are shared in the ratio of 4 : 3 : 3. Capitals carried interest @ 5% p.a. During the year, the firm incurred a loss of ₹ 85,000 before allowing interest on capital. Drawings of each partner during the year were ₹ 10,000.
On 31st March, 2022, the partners decided to dissolve the firm as it was no longer profitable. The creditors on that date were ₹ 25,000. The Assets realised a net value of ₹ 2,00,000 and the Expenses of Realisation were ₹ 3,000.
Prepare Realisation Account, Partner’s Capital Accounts and Cash Account along with necessary workings to close the books of the firm.
Anurag Pathak Changed status to publish February 11, 2024
