A, B and C are partners in a firm sharing profits in the ratio 2:1:1. Their balance sheet as at 31st March 2020 was as follow: Liabilities Amount Assets Amount Creditors 50,000 Goodwill 30,000 Capital account -------- Land and building 80,000 A 80,000 Machinery 56,000 B 80,000 Car 54,000 C 60,000 Debtors 48,000 Cash 2,000 2,70,000 2,70,000 The firm was dissolved and assets realised: Goodwill Rs.20,000; Land and building Rs.1,00,000; Machinery Rs.50,000; Car Rs.28,000 and Debtors 50% of the book value. Realisation expenses were 2,000. Prepare Realisation Account, Capital Accounts of Partner and Cash Account to close the books of the firm.
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Answer:
Answer
Revaluation A/c
Particulars (Dr.) Amount Particulars (Cr.) Amount
To Building a/c
To profit on revaluation
A's capital a/c 16,500
B's capital a/c 11,000
C's capital a/c 5,500 3,000
33,000 By Land a/c
By creditors a/c 30,000
6,000
Partners' Capital a/c
Particulars (Dr.) A B C Particulars (Cr.) A B C
To A's capital a/c
To balance c/d
1,56,500
71,000 25,000
10,500 By balance b/d
By General reserve a/c
By Revaluation a/c
By C's capital a/c 1,00,000
15,000
16,500
25,000 50,000
10,000
11,000 25,000
5,000
5,500
Balance Sheet of A, B & C
Liabilities Amount Assets Amount
Capital
A 1,56,500
B 71,000
C 10,500
Creditors
Bills Payable 2,38,000
44,000
20,000 Land
Building
Plant
Stock
Debtors
Bank 80,000
47,000
1,00,000
40,000
30,000
5,000