Practical Problem 11
Practical problem | Q 11 | Page 249
Following is the Balance Sheet as on 31st March, 2019 of a firm having Three equal partners Priti, Priya and Prachi. | |||
Balance Sheets as on 31st March 2019. | |||
Liabilities | Amount | Assets | Amount |
Capital | Machinery | 23,000 | |
Priti | 40,000 | Furniture | 16,000 |
Priya | 35,000 | Stock | 47,000 |
Prachi | 25,000 | Cash at Bank | 10,000 |
Trade Creditors | 50,000 | Profit and Loss Account | 84,000 |
Loan (secured by Machinery) | 30,000 | ||
1,80,000 |
| 1,80,000 | |
The firm was dissolved due to insolvency of all the partners. Machinery was sold for ` 18,000, | |||
while Furniture fetched ` 14,000, Stock realised ` 35,000. Realisation expenses amounted to ` 2,000. | |||
Nothing could be recovered from Priya and Prachi, but ` 3,400 could be collected from Priti’s private estate. | |||
Close the books of accounts of the firm. | |||
SOLUTION :
IN THE BOOKS OF Priti, Priya and Prachi. | |||||
Dr Realisation A/c Cr | |||||
Particular | Amt | Amt | Particular | Amt | Amt |
To Sundry Asset | By Cash/Bank A/c | ||||
Machinery | 23,000 | Machinery | 18,000 | ||
Furniture | 16,000 | Furniture | 14,000 | ||
Stock | 47,000 | 86,000 | Stock | 35,000 | 67,000 |
To Cash/Bank A/c | 2,000 | By Partners Capital A/c | |||
Realisation Expenses | (Loss on Realisation) | ||||
Priti | 7,000 | ||||
Priya | 7,000 | ||||
Prachi | 7,000 | 21,000 | |||
88,000 | 88,000 | ||||
Dr Partner’s Capital A/c Cr | |||||||
Particular | Priti | Priya | Prachi | Particular | Priti | Priya | Prachi |
To Profit & Loss A/c | 28,000 | 28,000 | 28,000 | By Bal b/d | 40,000 | 35,000 | 25,000 |
To Realisation A/c (Loss) | 7,000 | 7,000 | 7,000 | By Cash A/c | 3,400 | ||
By Deficiency A/c | 10,000 | ||||||
To Deficiency | 8,400 | ||||||
43,400 | 35,000 | 35,000 | 43,400 | 35,000 | 35,000 | ||
Dr Deficiency A/c Cr | |||||
Particular | Amount | Amount | Particular | Amount | Amount |
To Prachi Capital A/c | 10,000 | By Priti Capital A/c | 8,400 | ||
By Trade Creditor A/c | 1,290 | ||||
By Loan A/c | 310 | ||||
10,000 | 10,000 | ||||
Dr Trade Creditor A/c Cr | |||||
Particular | Amount | Amount | Particular | Amount | Amount |
To Deficiency | 1,290 | By Bal b/d | 50,000 | ||
To Cash A/c | 48,710 | ||||
50,000 | 50,000 | ||||
Dr Loan A/c Cr | |||||
Particular | Amount | Amount | Particular | Amount | Amount |
TO Deficiency A/c | 310 | By Bal b/d | 30,000 | ||
To Cash A/c | 29,690 | ||||
30,000 | 30,000 | ||||
Dr Bank A/c Cr | |||||
Particular | Amount | Amount | Particular | Amount | Amount |
To Bal b/d | 10,000 | ||||
To Realisation A/c (Asset Sold) | 67,000 | By Realisaton A/c | 2,000 | ||
To Priti Capital A/c | 3,400 | By Trde Creditor A/c | 48,710 | ||
By Loan A/c | 29,690 | ||||
80,400 | 80,400 | ||||