Question

Ashok, Babu and Chetan are in partnership sharing profit in the proportion of 1/2, 1/3, 1/6 respectively.They dissolve the partnership of the 31st March,2018 when the Balance Sheet of the firm as under:
The Machinery was taken over by Babu for ₹ 45,000, Ashok took over the Investments for ₹ 40,000 and Freehold property took over by Chetan at ₹ 55,000. The remaining Assets realised as follows:
Sundry Debtors ₹ 56,500 and Stock ₹ 36,500. Sundry Creditors were settled at discount of 7%. A office computer, not shown in the books of accounts realised ₹ 9,000. Realisation expenses amounted to ₹ 3,000.
Prepare Realisation Account, Partners Capital Accounts and Bank Account.

Answer 1

The Realisation Account, Partner’s Capital Accounts and Bank Account are calculated and prepared below:

Explanation:

REALISATION ACCOUNT:

Particulars (Dr.)

Sundry Debtors - Rs. 58000

Stock  - Rs. 39500

Machinery  - Rs. 48000

Investment  - Rs. 42000

Freehold property - Rs. 50500

Bank:

• Sundry Creditors  - Rs. 18600
• Bills Payable  - Rs. 25500
• Expenses  - Rs. 3000

Total = Rs. 47100

Realisation Profit

• Ashok's Current A/c  - Rs. 1200
• Babu's Current A/c  - Rs.800
• Chetan's Current A/c - Rs. 400

Total = Rs. 2400

Adding all, we get,

=58000 + 39500 + 48000 + 42000 + 50500 + 47100 + 2400

= Rs. 2,87,500

Particulars (Cr.)

Sundry Creditors - Rs. 20000

Bills Payable  - Rs. 25500

Ashok's Current A/c (Investment)  - Rs. 40000

Babu's Current A/c (Machinery) - Rs. 45000

Chetan's Current A/c  (Frechold property) - Rs. 55000

Bank:

• Sundry Debtors - Rs. 56500
• Stock  - Rs. 36500
• Unrecorded Computer - Rs. 9000

Total = Rs. 1,02,000

Adding all, we get

= 20000 + 25500 + 40000 + 45000 + 55000 + 102000

= Rs. 2,87,500

The loan A/c, Partner's Capital A/c, Partner's Current A/c and the bank account are calculated and prepared below: