Vinod, Vijay and Venkat are partners sharing profits and losses in the ratio of 3 : 2 : 1. They decided to dissolve their firm on 31st March, 2018 the date on which their Balance Sheet stood as:
The following additional information is given:
(a) The Investments are taken over by Vinod for ₹ 5,000
(b)
(c) Expenses on realisation amounted to ₹ 2,000.
Close the books of the firm giving relevant Ledger Accounts.
Answers
The Realisation Account, Partner’s Capital Accounts and Bank Account are calculated and prepared below:
Explanation:
REALISATION ACCOUNT:
Particulars (Dr.)
To Stock A/c - Rs. 19800
To Debtors A/c- Rs. 15000
To Investments A/c - Rs. 4000
To Furniture A/c - Rs. 10000
To Machinery A/c - Rs. 33000
To Bank A/c (Expenses) - Rs. 2000
To Bank A/c (Creditors) - Rs. 17000
To Bank A/c (Bills Payable) - Rs. 12000
Adding all, we get
= 19800 + 15000 + 4000 + 10000 + 33000 + 2000 + 17000 + 12000
= Rs. 1,12,800
Particulars (Cr.)
By Provision for Doubtful Debts A/c - Rs. 1000
By Creditors A/c - Rs. 17000
By Bills Payable A/c - Rs. 12000
By Vindo's Capital A/c - Rs. 5000
By Bank A/c:
- Stock - Rs. 17500
- Debtors - Rs. 14500
- Building - Rs. 6800
- Machinery - Rs. 30300
Total = Rs. 69,100
By Loss transferred to:
- Vinod - Rs. 4350
- Vijay - Rs. 2900
- Venkat - Rs. 1450
Total = Rs. 8700
Adding all, we get
= 1000 + 17000 + 12000 + 5000 + 69100 + 8700
= Rs. 1,12,800
As per the Parner's Capital Accounts,
The Dr. and the Cr. of Vinod, Vijay and Venkat will be Rs. 28,000, Rs. 13,000 and Rs. 9,000 respectively.
The bank and the loan account are calculated and prepared below:
