Question

(8) X Y and Z are partners sharing profits and losses in the ratio of 3:2:1. The Elalance Sheet as on 31.1.2018 was as follows:

Balance Sheet an on 31.3.2018

30,000

20,000 10,000

10,000

18,500

Assets

Machinery

Investments

Stock in trade Joint Life Policy

Debtors

Profit and loss A/c

14,000 Cash at bank

6,000

1,08,500

Liabilities

X

Capitals

Mrs.Y's Joan

Creditors

Life Policy Fund

Investment Fluctuation

fund

The firm was dissolved on the above date.

40,500

20,830 17,550

14,000

8.700

1,500 5,420

1,08,500

a) Joint life policy is surrendered for 12, 000. Machinery is realised for 255,000, Stock is realised for 15, 000, Debtors realised 7 6,150

b) Investments are taken over by Mr. K for 17, 500

ci Mr. Y agrees to discharge his wife's loan.

d) It is found that an investment not recorded in the books is worth 73,000. The same is taken over by one of the creditors.

el Expenses of realisation amounted to 2600.

Prepare: i. Realisation A/c

b. Partners' capital Accounts and

e. Bank A/e

Ans: Profits on Realization Rs 26,470, Final capital balance paid: X ? 34,985, Y 28,323, Z 14,162 and Bank A/e Total 87,420.)​

Answer 1

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