29. Amit, Bachan and Charnesh sharing profits in the ratio of 2:2:1 agreed upon dissolution of their partnership on
31st March, 2020 on which date their Balance Sheet was as under:
Liabilities
Assets
1,00,000
50,000
Capital Alc-Amit
Capital A/c-Bachan
Reserve
Creditors
Outstanding Rent
Investments Fluctuation Reserve
80,000
60,000
70,000
37,000
4,000
1,000
20,000
1,000
Fixed Assets
Insurance Claim Receivable
Debtors
Less: Provision for Doubtful Debts
Stock
Investments
Bank
Capital A/c-Charnesh
19,000
16,000
16,000
47,000
4,000
2,52,000
2,52,000
(i) Investments were taken by Amit at 12,000; Creditors of 20,000 were taken by Bachan who
has agreed to settle account with them at 19,800. Remaining Creditors were paid at 15,000.
(ii) Insurance Claim received 40,000 and Fixed Assets realised 1,40,000.
(iii) Stock and Debtors realised 14,000 and 18,000 respectively.
(iv) One customer, whose account was written off as bad, now paid 1,600 which is not included
in 18,000 above.
(v) There was one unrecorded asset valued at 6,000, half of which was given to an unrecorded
creditor of 10,000 in settlement of claim of 5,000 and remaining half was sold in the market
which realised 2,600.
Bachan took the responsibility of completing dissolution at a salary of 800 per month. Dissolution
Expenses were to be borne by Bachan. Realisation Expenses amounting to 2,200 were paid by the
firm. Dissolution was completed and final payments were made on 30th July, 2020.
You are required to prepare Realisation Account, Partners Capital Accounts and Bank Account.
on of 176. 173. 1/2 agreed upon dissolution of
Answers
Answer:
29. Amit, Bachan and Charnesh sharing profits in the ratio of 2:2:1 agreed upon dissolution of their partnership on
31st March, 2020 on which date their Balance Sheet was as under:
Liabilities
Assets
1,00,000
50,000
Capital Alc-Amit
Capital A/c-Bachan
Reserve
Creditors
Outstanding Rent
Investments Fluctuation Reserve
80,000
60,000
70,000
37,000
4,000
1,000
20,000
1,000
Fixed Assets
Insurance Claim Receivable
Debtors
Less: Provision for Doubtful Debts
Stock
Investments
Bank
Capital A/c-Charnesh
19,000
16,000
16,000
47,000
4,000
2,52,000
2,52,000
(i) Investments were taken by Amit at 12,000; Creditors of 20,000 were taken by Bachan who
has agreed to settle account with them at 19,800. Remaining Creditors were paid at 15,000.
(ii) Insurance Claim received 40,000 and Fixed Assets realised 1,40,000.
(iii) Stock and Debtors realised 14,000 and 18,000 respectively.
(iv) One customer, whose account was written off as bad, now paid 1,600 which is not included
in 18,000 above.
(v) There was one unrecorded asset valued at 6,000, half of which was given to an unrecorded
creditor of 10,000 in settlement of claim of 5,000 and remaining half was sold in the market
which realised 2,600.
Bachan took the responsibility of completing dissolution at a salary of 800 per month. Dissolution
Expenses were to be borne by Bachan. Realisation Expenses amounting to 2,200 were paid by the
firm. Dissolution was completed and final payments were made on 30th July, 2020.
You are required to prepare Realisation Account, Partners Capital Accounts and Bank Account.
on of 176. 173. 1/2 agreed upon dissolution of