Balance Sheet of a firm as at 31st March, 2018 , when it was decided to dissolve the same was:
₹19,500 were realised from all assets except Cash at Bank. The cost of winding up came to ₹ 440. X and Y shared profits in the ratio of 2 : 1 respectively.
Prepare Realisation Account and Capital Accounts of Partners.
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The Realisation Account and Capital Accounts of Partners are calculated and prepared below:
Explanation:
REALISATION ACCOUNT:
Particulars (Dr.)
To Machinery A/c - Rs. 10,580
To Stock A/c - Rs. 4740
To Debtors A/c - Rs. 5540
To Bank A/c:
- Creditors - Rs. 14000
- Expenses - Rs, 440
Total = Rs. 14440
Adding Machinery A/c, Stock A/c, Debtors A/c and Bank A/c, we get
= Rs. 10580 + Rs. 4740 +Rs. 5540 + Rs.14440 = Rs. 35,300
Particulars (Cr.)
By Sundry Creditors A/c - Rs.14000
By Bank A/c (Assets Realised) - Rs. 19,500
By Loss transferred to:
- X's Capital A/c - Rs. 1200
- Y's Capital A/c - Rs. 600
Total = Rs. 1800
Adding Sundry Creditors A/c, Bank A/c and the loss, we get
= Rs. 14000 + Rs. 19500 + Rs. 1800 = Rs. 35300
The partner's capital account and the bank account are prepared below:
Attachments:
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