DISSOLUT
5.153
Liabilities
Creditors
1 Wile Loan
Capital Accounts:
40,000 Lease
Provision for Depreciation on Plant
80,000
8,600 Plant
40,000
10,000 Patent Rights
30,000
Furmture
13,000
62,000
Stock
20,000
B
54,000
Book Debts
26,000
C
51,000
Les Provision 1,000 25,000
1.67.000 Cash at Bank
14.000
Cash-in-Hand
1.000
2,25,600
2.25,600
B was appointed to realise the assets and pay the liabilities. He was entitled to
receive 10% commission on the amounts finally paid to other partners as capital. He
was also to bear the expenses of realisation,
You are informed that:
(1) An old typewriter, written off completely from the firm's books, is now
estimated to realise 1,400. It is taken over by B at this estimated price.
(2) 1 agreed to accept furniture in full settlement of his wife's loan.
(3) Assets realised as follows : Lease $1,00,000; Plant at 36,000; Stock
$12,000; 8,000 of the book debts proved bad.
(4) Expenses of realisation amounted to 800.
(5) Creditors accepted patent rights at a discount of 20% in part satisfaction of
their claim. Out of their balance they were paid 50% in full satisfaction.
(6) The partnership had previously purchased some shares at P20,000 in a public
limited company and had written them off as worthless. These shares were
taken over by B at 4,000.
Prepare necessary accounts.
JAns. Profit on Realisation 12,000; Final Payment A 60,000; B 263,600 and
250,000; Total of Bank A/c 1,81,600.1
Answers
Answer:
DISSOLUT
5.153
Liabilities
Creditors
1 Wile Loan
Capital Accounts:
40,000 Lease
Provision for Depreciation on Plant
80,000
8,600 Plant
40,000
10,000 Patent Rights
30,000
Furmture
13,000
62,000
Stock
20,000
B
54,000
Book Debts
26,000
C
51,000
Les Provision 1,000 25,000
1.67.000 Cash at Bank
14.000
Cash-in-Hand
1.000
2,25,600
2.25,600
B was appointed to realise the assets and pay the liabilities. He was entitled to
receive 10% commission on the amounts finally paid to other partners as capital. He
was also to bear the expenses of realisation,
You are informed that:
(1) An old typewriter, written off completely from the firm's books, is now
estimated to realise 1,400. It is taken over by B at this estimated price.
(2) 1 agreed to accept furniture in full settlement of his wife's loan.
(3) Assets realised as follows : Lease $1,00,000; Plant at 36,000; Stock
$12,000; 8,000 of the book debts proved bad.
(4) Expenses of realisation amounted to 800.
(5) Creditors accepted patent rights at a discount of 20% in part satisfaction of
their claim. Out of their balance they were paid 50% in full satisfaction.
(6) The partnership had previously purchased some shares at P20,000 in a public
limited company and had written them off as worthless. These shares were
taken over by B at 4,000.
Prepare necessary accounts.
JAns. Profit on Realisation 12,000; Final Payment A 60,000; B 263,600 and
250,000; Total of Bank A/c 1,81,600.1