The following is the Balance Sheet of A and B as at 31st March, 2024: Mrs. A’s Loan ₹ 15,000 Mrs. B’s Loan ₹ 10,000
The following is the Balance Sheet of A and B as at 31st March, 2024:
| Liabilities | ₹ | Assets | ₹ |
| Mrs. A’s Loan | 15,000 | Cash | 4,200 |
| Mrs. B’s Loan | 10,000 | Bank | 3,400 |
| Trade Creditors | 30,000 |
Debtors 30,000 Less: Provision 2,000 |
28,000 |
| Bills Payable | 10,000 | Investments | 10,000 |
| Outstanding Expenses | 5,000 | Stock | 40,000 |
|
A: Capital B: Capital |
1,00,000 80,000 |
Truck | 75,000 |
| Plant and Machinery | 80,000 | ||
| B: Drawings | 9,400 | ||
| 2,50,000 | 2,50,000 |
Firm was dissolved on this date.
(i) Half the stock was sold at 10% less than the book value and the remaining half was taken over by A at 20% more than the book value.
(ii) During the course of dissolution, a liability under action for damages was settled at ₹ 12,000 against ₹ 10,000 included in the creditors.
(iii) Assets realised as follows: Plant & Machinery – ₹ 1,00,000; Truck – ₹ 1,20,000; Goodwill was sold for ₹ 25,000; Bad Debts amounted to ₹ 5,000. Half the investments were sold at book value.
(iv) A promised to pay off Mrs. A’s Loan and took away half the investments at 10% discount.
(v) Trade Creditors and Bills Payable were due on average basis of one month after 31st March, but were paid immediately on 31st March, at 12% discount per annum.
Prepare necessary accounts.
[Ans. Gain on Realisation ₹ 86,800; Final Payment to A ₹ 1,29,900 and B ₹ 1,14,000; Total of Bank A/c ₹ 3,00,600]
Anurag Pathak Answered question September 22, 2024
