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Shilpa, Meena and Nanda decided to dissolve their partnership on 31st March, 2023. Their Profit sharing ratio was 3 : 2 : 1 and their Balance Sheet was as under:

Liabilities Assets
Capital A/cs:

Shilpa

Meena

Bank Loan

Creditors

Provision for Doubtful Debts

General Reserve

80,000

40,000

20,000

37,000

1,200

12,000

Land

Stock

Debtors

Nanda’s Capital

Cash

81,000

56,760

18,600

23,000

10,840

1,90,200 1,90,200

It is agreed as follows:

The stock of value of ₹ 41,660 are taken over by Shilpa for ₹ 35,000 and she agreed to pay bank loan. The remaining stock was sold at ₹ 14,000 and debtors amounting to ₹ 10,000 realised ₹ 8,000. Land is sold for ₹ 1,10,000. The remaining debtors realised 50% at their book value. Cost of realisation amounted to ₹ 1,200. There was a typewriter not recorded in the books worth of ₹ 6,000 which were taken over by one of the creditors at this value. Prepare Realisation Account, Partner’s Capital Accounts, and Cash Account to close the books fo the firm.

[Ans.: Gain (profit) on Realisation – ₹ 20,940; Final Payments: Shilpa – ₹ 81,470; Meena – ₹ 50,980; Amount brought in by Nanda – ₹ 17,510; Total of Cash Account – ₹ 1,64,650.]

Anurag Pathak Changed status to publish July 31, 2023
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