Ting will be recorded at the mount of
Q. 48. A. B and sharing profits and losses in the ratio of red
dissolve their partnership firm on 31st March, 2018. A was asked to realize tv
and pay off liabilities. He had to bear the realisation expenses for shoh
promised a lump sum amount of P3,000. Their financial position as that we
follows:
Lab
Anet
Accounts Payable
40,000 Goodwill
20.000
30.000 Lease
75,000
Advance from B
25.000 Patents
Employees Saving Bank
16,000 Stock
50.000
Capitals:
Accounts Receivable
25.000
4
80,000
Equipment
B
66,000 1,45,000 300 Shares in X Lid.
36.000
Cash
C's Capital
2:57.000
2.57.000
Mortpage Loan
Informations
(1) Stock was valued at 40,000 and this was taken over by A and B equal
Lease realised €1,10,000, Equipments at 218,000; and Accounts Receivable
at 20,000 and other assets proved valueless.
(2) Actual realisation expenses paid by d amounted to 1,800.
(3) There was an unrecorded asset of 10,000 which was taken over by 4*
812,000
(4) A bill of 3,200 due for sales tax was received during the course of relation
and this was also paid
(5) Sunil, an old customer whose account was written off as bad in the previo
year, paid 2,500 which is not included in the above stand out
receivable
(6) Market value of the shares in Lid is 100 per share. Half the shares were
sold in the market subject to a commission of and the balance hall were
divided by all the partners in their profile sharing ratio
ash brought in by CP15.500, Payne
Propers necessary accounts
Answers
Answer:
ANSWER
Realization Account
Particulars Amount Particulars Amount
To Sundry Assets
(working notes) 69250 By Sundry Creditors 20000
To Bank A/c
Creditors- 20000
Expenses- 350 20350 By Bank A/c
Stock- 20000
Debtors- 25000
Other Assets- 20000 65000
To Profit
(transferred to partner's
capital a/c)
A- 1450
B- 1450 2900 By B's Capital A/c 7500
Total 92500 Total 92500
A's Loan Account
Particulars Amount Particulars Amount
To Bank A/c 10000 By Balance b/d 10000
Total 10000 Total 10000
Partner's Capital Accounts
Particulars A B Particulars A B
To Realisation A/c (machinery) 7500 By Balance b/d 25000 15000
To Bank A/c 26450 8950 By Realisation A/c
(profits) 1450 1450
Total 26450 16450 Total 26450 16450
Bank Account
Particulars Amount Particulars Amount
To Balance b/d 750 By Realisation A/c 20350
To Realisation A/c 65000 By A's Loan A/c 10000
By A's Capital A/c 26450
By B's Capital A/c 8950
Total 65750 Total 65750
Working Notes: 1 Memorandum Balance Sheet
Liabilities Amount Assets Amount
Capital
A- 25000
B- 15000 40000 Cash in Hand
and at Bank 750
Sundry Creditors 20000 Sundry Assets
(balancing figure) 69250
A's Loan 10000
Total 70000 Total 70000