Question

(D) Insolvency of All the Partners
16.
March, 2016, i.e., the date of dissolution :
1,000
4,000
25,000
40,000
30,000
10,000
20,000
1,30,000
60,000 Cash
Bank Overdraft
45,000 B/R
Creditors
X's Capital
15,000 Debtors
Z's Capital
10,000 Stock
Plant
Goodwill
Y's Capital
1,30,000
The assets realised 3 79,750 and after paying ? 2,000 for realisation expenses, the liabilities were paid 75 paise
in a rupee. Show the final adjustment among the partners, assuming that they are all insolvent.
Ans. Loss on Realisation 5,000.
Hints: (i) Ys deficiency 21,000 is transferred to the Capital Accounts of X and Z in 3 : 2 ratio which is their
capital ratio.
(ii) Surplus of Z's Capital Account 600 is transferred to X's Capital Account because X is also insolvent,
The Balance Sheet of X, Y and Z who share profits and losses in 3/5, 1/5 and 1/5 ratio stood as follows as at 31st​

Answer 1

Answer:

wah

Explanation:

liabilities were paid 75 paise

in a rupee. Show the final adjustment among the partners, assuming that they are all insolvent.

Ans. Loss on Realisation 5,000