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Ritvik, Shom and Mohit were in partnership sharing profits and losses in the ratio of 3 : 2 : 1. Their Balance Sheet as at 31st March, 2023 was as follows:

Liabilities Assets

Capital A/cs:

Ritvik

Shom

Mohit

Reserve

Employee’s Provident Fund

Provision for Depreciation

Creditors

72,000

51,600

62,400

18,000

18,000

30,000

66,000

Building

Plant

Stock

Computers

Debtors

Accrued Commission

Cash

60,000

1,32,000

36,000

37,200

30,000

6,000

16,800

  3,18,000   3,18,000

The firm was dissolved on the above date. The terms of the dissolution were:

(i) Ritvik took building at book value and agreed to pay the creditors.

(ii) Accrued Commission was not collected whereas a contingent liability of ₹ 3,600 was paid.

(iii) Other assets realised: Plant ₹ 1,50,000; Stock ₹ 30,000; Debtors ₹ 27,600; Computer ₹ 37,200.

(iv) Realisation Expenses were ₹ 3,600.

(v) A car which was written off from the books was taken by Ritvik for ₹ 24,000. He also agreed to pay Outstanding Salary of ₹ 24,000 which was not provided in the books.

Prepare Realisation Account, Capital Accounts of Partners and Cash Account.

Anurag Pathak Changed status to publish February 10, 2024
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