Practical Problem 05
Practical problem | Q 5 | Page 246
Seeta and Geeta are partners in the firm sharing Profits and Losses in the ratio of 4:1. | |||
They decided to dissolve the partnership on 31st March 2020 on which date their Balance Sheet stood as follows. | |||
Balance Sheets as on 31st March 2019. | |||
Liabilities | Amount | Assets | Amount |
Capital | Furniture | 14000 | |
Seeta | 90,000 | Plant | 65000 |
Geeta | 40,000 | Trademark | 8000 |
Sundry Creditors | 35,000 | Sundry Debtors 48,000 | |
Bank Loan | 15,000 | Less – R. D. D. -3,000 | 45000 |
Stock | 30000 | ||
Cash in hand | 10,000 | ||
Advertisement Suspense | 8,000 | ||
1,80,000 | 1,80,000 | ||
Additional Information : | |||
1. Plant and Stock taken over by Seeta ` 78,000, and ` 22,000 respectively | |||
2. Debtors Realised 90% of the Book Value and Trademark at ` 5,000. and Goodwill | |||
was realised for ` 27,000. | |||
3. Unrecorded assets estimated ` 4,500 was sold for ` 1,500. | |||
4. ` 1,000 Discount were allowed by creditors while paying their claim. | |||
5. The Realisation Expenses amounted to ` 3,500 | |||
You are required to prepare Realisation A/c, Cash A/c and Partners Capital A/c | |||
SOLUTION :
IN THE BOOKS OF FIRM | |||||
Dr Realisation A/c Cr | |||||
Particular | Amt | Amt | Particular | Amt | Amt |
To Sundry Asset | By Sundry Liability | ||||
Furniture | 14000 | Sundry Creditors | 35,000 | ||
Plant | 65000 | Bank Loan | 15,000 | 50,000 | |
Trademark | 8000 | By R.D.D | 3,000 | ||
Debtors | 48,000 | ||||
Stock | 30,000 | 1,65,000 | By Seeta Capital A/c | ||
Plant | 78,000 | ||||
To Cash A/c | Stock | 22,000 | 1,00,000 | ||
Creditors | 34,000 | By Cash A/c | |||
Realisation Exp | 3,500 | Debtors | 43,200 | ||
Bank Loan A/c | 15,000 | 52,500 | Trade Mark | 5,000 | |
By Partners Capital A/c | Goodwill | 27,000 | 75,200 | ||
(Profit) | By Cash A/c | 1,500 | |||
Seeta | 9,760 | Unrecorded Asset | |||
Geeta | 2,440 | 12,200 | |||
2,29,700 | 2,29,700 | ||||
Dr Partner’s Capital A/c Cr | |||||
Particular | SEETA | GEETA | Particular | SEETA | GEETA |
To Advertisement Suspense | 6,400 | 1,600 | By Bal b/d | 90,000 | 40,000 |
TO Realisation A/c | 1,00,000 | By Realisation A/c | 9,760 | 2,440 | |
To Cash A/c | 40,840 | By Cash A/c | 6,640 | ||
1,06,400 | 42,440 | 1,06,400 | 42,440 | ||
Dr Cash/Bank A/c Cr | |||||
Particular | Amount | Amount | Particular | Amount | Amount |
To Bal b/d | 10,000 | By Realisation A/c | 52,500 | ||
To Realisation A/c | 75,200 | By Geeta Capital A/c | 40,840 | ||
To Realisation A/c | 1,500 | ||||
To Seeta Capital A/c | 6,640 | ||||
93,340 | 93,340 | ||||