Practical Problem 12

Practical problem | Q 12 | Page 250

Shashwat and Shiv are equal partners. Their Balance Sheet stood as under :

                                                                                                Balance Sheets as on 31st March 2019.

Liabilities

Amount

Assets

Amount

Shaswat’s Captital A/c

6000

Plant and Machinery

14,750

Creditors

39,000

Furniture

4,000

  

Debtors

5,000

  

Stock

6,250

  

Cash at Bank

3,000

  

Shiv’s Capital

12,000

 

45,000

 

45,000

Due to weak financial position all partners were declared bankrupt.

The Assets were realised as follows :

Stock Rs 3,500, Furniture Rs 2,000, Debtors Rs 5,000 and Machinery Rs7,000

The cost of collection and distributing the estate amounted to ` 1,500.

Shashwat’s private estate is not sufficient even to pay his private debts, whereas in Shiv’s private estate

there is a surplus of Rs 500

Prepare necessary ledger accounts to close the books of the firm.

 

 

 

SOLUTION : 

                                                                                  IN THE BOOKS OF Shashwat and Shiv

Dr                                                                                                                                  Realisation A/c                                                                                                                       Cr

Particular

Amt

Amt

Particular

Amt

Amt

To Sundry Asset

By Bank  A/c

Plant and Machinery

14,750

Stock

3,500

Furniture

4,000

Furniture

2,000

Debtors

5,000

Debtors

5,000

Stock

6,250

30,000

Plant and Machinery

7,000

17,500

To Bank A/c

1,500

(Realisation Exp)

By Partner’s Capital A/c

(Loss On realisation)

Shashwat Capital A/c

7,000

Shiv’s Capital A/c

7,000

14,000

31,500

31,500

Dr                                                                                                                        Partner’s Capital A/c                                                                               Cr

Particular

Shashwat

Shiv

Particular

Shashwat

Shiv

To Balance b/d

12,000

By Balance b/d

6,000

To Realisation A/c

7,000

7,000

By Cash A/c

500

By Deficiency A/c

1,000

18,500

7,000

19,000

7,000

19,000

         

Dr                                                                                                                                      Deficiency A/c                                                                                                                           Cr

Particular

Amount

Amount

Particular

Amount

Amount

To Shashwat Capital A/c

1,000

By Trade Creditor A/c

19,500

To Shiv’s Capital A/c

18,500

19,500

19,500

Dr                                                                                                                         Trade Creditor  A/c                                                                                                                       Cr

Particular

Amount

Amount

Particular

Amount

Amount

To Deficiency A/c

19,500

By Balance b/d

39,000

To Bank A/c

19,500

39,000

39,000

Dr                                                                                                                             Bank A/c                                                                                                                                       Cr

Particular

Amount

Amount

Particular

Amount

Amount

To Balance b/d

3,000

By Realisation A/c

1,500

To Realisation A/c

17,500

By Trade Creditor A/c

19,500

To Shiv’s Capital A/c

500

21,000

21,000