Practical problem | Q 3 | Page 245
Shailesh and Shashank were partners sharing Profits and Losses in the ratio of 3:2 | |||
Their Balance Sheet as on 31st March 2019 was as follows : | |||
Balance Sheets as on 31st December 2019. | |||
Liabilities | AMOUNT | ASSET | AMOUNT |
Capital Account : | Building | 7,000 | |
Shailesh | 10,000 | Plant | 9,000 |
Shashank | 6,000 | Debtors | 14,000 |
Current Account : | Stock | 5,000 | |
Shailesh | 3,000 | Bank | 6,000 |
Shashank | 2,000 | ||
Creditors | 17,400 | ||
Bills payable | 2,600 | ||
41,000 |
| 41,000 | |
The firm was dissolved on the above date and the assets realised as under. | |||
1. Plant ` 8,000, Building ` 6,000, Stock ` 4,000 and Debtors ` 12,000. | |||
2. Shailesh agreed to pay of the Bills Payable. | |||
3. Creditors were paid in full. | |||
4. Dissolution expenses were ` 1,400. | |||
Prepare Realisation A/c, Partners Current A/c, Partners Capital A/c and Bank A/c | |||
SOLUTION :
IN THE BOOKS OF FIRM | |||||
Dr Realisation A/c Cr | |||||
Particular | Amt | Amt | Particular | Amt | Amt |
To Sundry Asset A/c | By Sundry Liability | ||||
Building | 7,000 | Creditor | 17,400 | ||
Plant | 9,000 | Bills Payable | 2,600 | 20,000 | |
Debtors | 14,000 | ||||
Stock | 5,000 | 35,000 | By Cash A/c | ||
To Shailesh Current A/c | 2,600 | Plant | 8,000 | ||
(Bills Payable) | Building | 6,000 | |||
Stock | 4,000 | ||||
To Cash A/c | 17,400 | Debtors | 12,000 | 30,000 | |
(Creditors)) | |||||
By Partner Current A/c | |||||
To Cash A/c | 1,400 | Shailesh A/c | 3,840 | ||
(Dissolution Exp) | Shashank A/c | 2,560 | 6,400 | ||
56,400 | 56,400 | ||||
Dr Partner’s Current A/c Cr | |||||
Particular | Shailesh | Shashank | Particular | Shailesh | Shashank |
To Realisation A/c | 3,840 | 2,560 | By Bal b/d | 3,000 | 2,000 |
By Realisation A/c | 2,600 | ||||
To Capital A/c | 1,760 | By Capital A/c | 560 | ||
5,600 | 2,560 | 5,600 | 2,560 | ||
Dr Partner’s Capital A/c Cr | |||||
Particular | Shailesh | Shashank | Particular | Shailesh | Shashank |
To Current A/c | 560 | By Bal b/d | 10,000 | 6,000 | |
By Current A/c | 1,760 | ||||
To Cash A/c | 11,760 | 5,440 | |||
11,760 | 6,000 | 11,760 | 6,000 | ||
Dr Cash/Bank A/c Cr | |||||
Particular | Amt | Amt | Particular | Amt | Amt |
To Bal b/d | 6,000 | By Realisation A/c | 17,400 | ||
To Realisation A/c | 30,000 | By Realisation A/c | 1,400 | ||
By Shailesh Capital A/c | 11,760 | ||||
By Shashank Capital A/c | 5,440 | ||||
36,000 | 36,000 | ||||