Question

S and W are partners in a firm sharing profits and losses in the ratio of 4 : 1. They
decided to dissolve the partnership on 31.3.93 on which date their Balance Sheet
stood as under:
Liabilities
Rs.
Assets
Rs.
Capitals:
Plant
1,20,000
S
1,60,000
Furniture
4,000
W
60,000
Debtors 90,000
Bank loan
20,000 Less. Provision 4,000 86,000
Creditors
80,000 Trade Marks
12,000
Stock
60,000
Cash
28,000
Advertisement Suspense
10,000
3,20,000
3,20,000
The realisation showed the following results:
(1) Debtors realised 90% of the book value.
(ii) Trade mark Rs. 8,000
(iii) Goodwill was sold for Rs. 10,000
(iv) Plant & Stock were taken over by S for Rs. 1,44,000 and Rs. 36,000
respectively.
(v) An unrecorded asset estimated at Rs. 6,000 was sold for Rs. 2,000.
Discounts amounting to Rs. 800 were allowed by creditors while paying their claims.
Expenses of realisation amounted to Rs. 4,000. Prepare Realisation A/c, Bank A/c and
Partners Capital accounts assuming that settlement was made on 1.4.93.
951
ISU
cept cash realised Rs.601
penses amounted to Rs
2008; BCA/BSc Od.
Modified) B.Com, Sept?
00; Ram receives Rs.123
10,700; Cash A/c Rs. 615
ses in the proportion of 4
WS:
Assets
dings
de
[Madras, B.C.A. / B.Sc. Oct. 1999 ( Figs.)]
(Ans: Realisation Loss: Rs. 4,200; Total of Bank A/c : Rs. 1,60,360;
Cash Brought in by S: Rs. 31,360; Cash Paid to W: Rs. 57,160)
Hint: Entry for Advt. Suspense A/c:
SA/C
Dr. 8,000
W AIC
Dr. 2,000
To Advt. Suspense A/c
10,000​

Answer 1

Answer:

• b) 0.07049 correct to 2 significant figure

Answer 2

solution of this question