Question

Q.4
P,Q,R and S had been carrying on business in partnership sharing profit and losses in the ration of 4:3:2:1 .They decided to dissolve the partnership on the basis of following Balance Sheet as on 30th April,2011:
(1)
(2) (3) (4)
Q4.
The assets were realized as under : Land and Building
Furniture & Fixture
Stock
2,30,000 42,000 72,000 65,000
पी,क्यू,आरऔरएस4:3:2:1के राशनमेंलाभऔरनकु सानकोसाझाकरतेिुएव्यापारमेंलेजारिे थे। उन्िोंने 30 अप्रैल, 2011 को बैलेंस शीर् के आिार पर साझेिारी को भंग करने का फै सला ककया।
Debtors
Expenses of dissolution amounted to Rs.7,800
Further creditors of Rs.18,000 and had to be met
R became insolvent and nothing was realized from his private estate.
Applying the principles laid down in Garners vs. Murray, prepare the Realisation Account, Partner’s Capital Account and Cash Account.

Answer 1

Applying the principles laid down in Garners vs. Murray, prepare the Realisation Account, Partner’s Capital Account and Cash Account.

Explanation:

Realisation Account

Particulars                          Amt in INR                   Particulars          Amt in INR

To Land and Building          246000                 By sundry creditors   36000

To furniture and fixture          65000                 By mortgage loan     110000

To stock                                100000                  By cash account:

To debtors                              72500                  Land & Building       230000

To cash a/c (dissolution exp)                              Furniture & Fixture    42000                                        

To cash A/c "                                                        Stock                           72000

                                                                              Debtors                       65000

(creditors 36000+18000)        54000                By partner's Capital

To cash a/c -Mortgage Loan   110000                 (Loss 4:3:2:1)              100300

                                                                               P = 40120

                                                                               Q = 30090

                                                                               R = 20060

                                                                                S = 10030

_________________________________________________________

                                                 655300                                               655300

__________________________________________________________                              

Although S is a "solvent partner" yet he cannot be asked to bear the loss due to insolvency  of R nor will he bring the cash for realisation since his capital account has a "debit balance"

Thus,

capital ratio of P & Q = 216:144 = 3:2

Deficiency of R = (25000+20060) - (19000+5000) = 45060-24000 = 21060

Deficiency of R will be  borne by P& Q in the ratio of 3:2 (opening capital+general reserve+capital reserve)

P = 21060*3/5 = 12636

Q = 21060 *2/5 = 8424

For partner's capital account  and cash account pls refer attachment

                                                                       

To know more

what do you mean by adjustment in closed partnership account ...

https://brainly.in/question/25247075