Srijan, Raman and Manan were partners in a firm sharing profits and losses in the ratio of 2 : 2 : 1. On 31st March, 2017 their Balance sheet was as follows:
Srijan, Raman and Manan were partners in a firm sharing profits and losses in the ratio of 2 : 2 : 1. On 31st March, 2017 their Balance sheet was as follows:
| Liabilities | ₹ | Assets | ₹ |
| Capitals:
Srijan Raman Creditors Bills Payable Outstanding Salary |
2,00,000
1,50,000 75,000 40,000 35,000 |
Capital: Manan
Plant Investments Stock Debtors Bank Profit & Loss Account |
10,000
2,20,000 70,000 50,000 60,000 10,000 80,000 |
| 5,00,000 | 5,00,000 |
On the above date they decided to dissolve the firm.
(a) Srijan was appointed to realise the assets and discharge the liabilities, Srijan was to receive 5% commission on sale of assets (except cash) and was to bear all expenses of realisation.
(b) Assets were realised as follows:
Plant – ₹ 85,000
Stock – ₹ 33,000
Debtors – ₹ 47,000
(c) Investments were realised at 95% of the book value.
(d) The firm had to pay ₹ 7,500 for an outstanding repair bill not provided for earlier.
(e) A contingent liability in respect of bills receivable, discounted with the bank has also materialised and had to be discharged for ₹ 15,000.
(f) Expenses of realisation amounting to ₹ 3,000 were paid by Srijan.
Prepare Realisation Account, Partner’s Capital Accounts and Bank Account.
[Ans.: Loss on Realisation – ₹ 202,575; Final Payaments to Srijan – ₹ 98,545; Raman – ₹ 36,970; Manan will bring – ₹ 66,515; Total of Bank Account – 3,08,015.]
Anurag Pathak Changed status to publish July 31, 2023
