Question

Shilpa, Meena and Nanda decided to dissolve their partnership on 31st March, 2018. Their profit-sharing ratio was 3 : 2 : 1 and their Balance Sheet was as under:
It is agreed as follows:
The stock of value of ₹ 41,660 are taken over by Shilpa for ₹ 35,000 and she agreed to discharge bank loan. The remaining stock was sold at ₹ 14,000 and debtors amounting to ₹ 10,000 realised ₹ 8,000. Land is sold for ₹ 1,10,000. The remaining debtors realised 50% at their book value . Cost of realisation amounted to ₹ 1,200. There was a typewriter not recorded in the books worth of ₹ 6,000 which were taken over by one of the Creditors at this value. Prepare Realisation Account, Partners Capital Accounts, and Cash Account to close the books of the firm.

Answer 1

The Realisation Account, Partners Capital Accounts, and Cash Account to close the books of the firm are calculated and prepared below:

Explanation:

REALISATION ACCOUNT:

Particulars (Dr.)

Land  - Rs. 81,000

Stock  - Rs. 56,760

Debtors  - Rs. 18,600

Shilpa's Capital A/c - Rs. 20,000

Cash:

• Creditors  - Rs. 31000
• Realisation Expenses - Rs. 1,200

Total = Rs. 32,200

Realisation Profit

• Shilpa's Capital A/c - Rs. 10,470
• Meena's Capital A/c - Rs. 6,980
• Nanda's Capital A/c - Rs. 3,490

Total = Rs. 20,940

Adding all we get,

= 81000 + 56760 + 18600 + 20000 + 32200 + 20940 = Rs. 2,29,500

Particulars (Cr.)

Bank Loan  - Rs. 20,000

Creditors  - Rs. 37,000

Provision for doubtful debts  - Rs. 1,200

Shilpa's Capital A/c (Stock) - Rs. 35,000

Cash

• Stock  - Rs. 14,000
• Debtors  - Rs. 12,300
• Land - Rs. 1,10,000

Total = 1,36,300

Adding all we get,

= 20000 + 37000 + 1200 + 35000 + 136300

= Rs. 2,29,500

As per the Partners Capital Accounts,

The Dr. and Cr. of Shilpa, Meena and Nanda are Rs. 1,16,470, Rs. 50,980 and Rs. 23,000 respectively.

The cash account is calculated and prepared below: