0

Sunil, Pawan and Manish were equal partners. On 31st March, 2023, their Balance Sheet stood as follows:

Liabilities Assets

Creditors

Reserve

Sunil’s Capital A/c

Pawan Capital A/c

Manish’s Capital A/c

50,400

12,000

30,000

25,000

15,000

Cash

Stock

Debtors

Investments

Furniture

Building

3,700

20,100

62,600

16,000

6,500

23,500

  1,32,400   1,32,400

The firm was dissolved on that date. For the purpose of dissolution, investments were value at ₹ 18,000 and Sunil took the investments at this value, Fixed Assets realised ₹ 29,700 whereas Stock and Debtors realised ₹ 80,000.

Expenses of Realisation were ₹ 1,300.

Creditors allowed a discount of ₹ 800. In addition, one Bill Receivable for ₹ 1,500 under discount was dishonoured as the acceptor had become insolvent and was unable to pay anything and hence the bill had to be met by the firm.

Prepare Realisation Account, Partner’s Capital Accounts and Cash Account showing how the accounts would finally be settled among the partners.

Anurag Pathak Changed status to publish February 10, 2024
Add a Comment