# Practical Problem 01

Practical problem | Q 1 | Page 244

 Ganesh and Kartik are partners sharing Profits and Losses equally. They decided to dissolve the firm on 31st March 2018. Their Balance Sheets was as under : Balance Sheets as on 31st March 2018. Liabilities AMOUNT ASSET AMOUNT Creditors 18,400 Building 88,000 Bills Payable 5,600 Furniture 12,000 Reserve Fund 20,000 Debtors 32,000 Capital A/c : Stock 24,000 Ganesh 40,000 Bills Receivable 4,000 Kartik 80,000 Cash 4,000 1,64,000 1,64,000 Assets were realised as under : Building  82,000, Debtors  22,000, Stock  20,000. Bills Receivable  3,200 and Ganesh agreed to take over Furniture for  10,000. Realisation Expenses amounted to  2,000. Show Realisation A/c, Partners’ Capital A/c and Cash A/c.

#### SOLUTION :

 IN THE BOOKS OF FIRM Dr                                                                                                                      Realisation A/c                                                                                                                              Cr Particular Amt Amt Particular Amt Amt To Sundry Asset By Sundry Liabilities Building 88,000 Creditors 18,400 Furniture 12,000 Bills Payable 5,600 24,000 Debtors 32,000 Stock 24,000 By Cash/Bank A/c Bills Receivable 4,000 1,60,000 Building 82,000 Debtors 22,000 To Cash/Bank A/c Stock 20,000 Realisation Expenses 2,000 Bills Receivable 3,200 1,27,200 creditor 18,400 By Ganesh Capital A/c 10,000 Bills Payable 5,600 26,000 Furniture By Partners Capital A/c (Loss on Realisation) Ganesh Capital A/c 12,400 Kartik Capital A/c 12,400 24,800 1,86,000 1,86,000
 Dr                                                                                                     Partner’s Capital A/c                                                                                                                      Cr Particular Ganesh Kartik Particular Ganesh Kartik To Realisation A/c 10,000 By Balance b/d 40,000 80,000 To Realisation A/c 12,400 12,400 By Reserve Fund 10,000 10,000 (Loss on realisation) To Cash/Bank A/c 27,600 77,600 50,000 90,000 50,000 90,000
 Dr                                                                                                                        Cash/Bank A/c                                                                                                                    Cr Particular Amount Amount Particular Amount Amount To bal b/d 4,000 By Realisation A/c 26,000 To Realisation A/c 1,27,200 By Ganesh Capital A/c 27,600 By Kartik Capital A/c 77,600 1,31,200 1,31,200