Total of Bank A/c 3,33,
QTI. Anurag and Prem were partners sharing profits and losses in 2:1. On 31st
March, 2020 their Balance Sheet was as follows:
Liabilities
Assets
Sundry Creditors
60,000 Bank
83,000
Mrs. Anurag's Loan
80,000 Sundry Debtors
60,000
Anurag's Loan
50,000 Less : Provision for
Workmen's Compensation
Doubtful Debts 3,000
57,000
Reserve
1.20,000 Stock
1,00,000
Investment Fluctuation Reserve 10,000 Furniture
20,000
Profit and Loss
5,000 Plant
4,00,000
Capitals :
Investments
45,000
Anurag
3.50,000
Advertisement Expenses
15,000
Prem
45,000 3,95,000
7,20,000
7,20,000
y2
The firm was dissolved on the above date :
(i) Anurag took over 60% of the stock at a discount of 20%; 25% of the
remaining stock was sold at a profit of 40% on cost; Remaining stock was
found obsolete and realised nothing.
(ii) Firm had to pay $90,000 as compensation to workers.
(iii) Sundry Creditors took over investments in full settlement. Rem wore
(iv) Sundry Debtors realised at 75% and plant realised 20% less,
(V) Prem agreed to take over the responsibility of completing dissolution work
and he was given furniture as his remuneration.
(vi) Realisation expenses amounted to 10,000.
Answers
Answer: loss on realisation:
Anurag -90000
Prem -45000
Explanation:
Answer:
Explanation:
Realization account
Particulars Amount particulars Amount
To sundry debtors 60000 By sundry Creditors 60000
To stock A/c 1,00,000 By Anurag's loan A/c 80000
To furniture A/c 20000 By Prem 3000
To plant A/c 4,00,000 By IFR A/c 10000
To Investment A/c 45000 By Bank A/c
Sundry debtors 45000
To bank A/c 10000 stock 62000
To Anurag's capital 80000 plant 320000
To Bank 90000 By compensation 90000
By loss on realisation
Anurag's cap 90000
Prem's cap 45000
805000 805000