Practical Problem 06

Practical problem | Q 6 | Page 246

Sangeeta, Anita and Smita were in partnership sharing Profits and Losses in the ratio  2:2:1. 

Their Balance Sheet as on 31st March 2019 was as under

                                                                                                  Balance Sheets as on 31st March 2019.

Liabilities

Amount

Assets

Amount

Capital :

Land

2,10,000

Sangeeta

60,000

Plant

20,000

Anita

40,000

Goodwill

15,000

Smita

30,000

Debtors

1,25,000

Sandya’s Loan A/c

1,20,000

Loans and Advances

15,000

Sundry Creditors

1,20,000

Bank

5,000

Bills Payable

20,000

3,90,000

3,90,000

They decided to dissolve the firm as follows :

1. Assets realised as; Land recovered ` 1,80,000; Goodwill for ` 75,000; Loans and

Advances realised ` 12,000; 10% of the Debts proved bad;

2. Sangeeta took Plant at book value.

3. Creditors and Bills payable paid at 5% discount.

4. Sandhya’s Loan was discharged along with ` 6,000 as Interest.

5. There was a contingent Liability in respect of bills of ` 1,00,000 which was under

 discount. Out of them, a holder of one bill of ` 20,000 became insolvent.

Show Realisation Account, Partners Capital Account and Bank Account.

SOLUTION : 

                                                                                                         IN THE BOOKS OF FIRM

Dr                                                                                                                                       Realisation A/c                                                                                                                         Cr

Particular

Amt

Amt

Particular

Amt

Amt

To Sundry Asset

  

By Sundry Liabilities

  

Land

2,10,000

 

Sundry Creditors

1,20,000

 

Plant

20,000

 

Bills Payable

20,000

 

Goodwill

15,000

 

Sandhya’s Loan

1,20,000

2,60,000

Debtors

1,25,000

 

By Cash/Bank A/c

  

Loans and Advances

15,000

3,85,000

Land

1,80,000

 
   

Goodwill

75,000

 

To Cash A/c

  

Loans and Advances

12,000

 

Sundry Creditors

1,14,000

 

Debtors

1,12,500

3,79,500

Bills Payable

19,000

1,33,000

   
   

By Sangeeta Capital A/c

 

20,000

To Cash/Bank A/c

  

Plant

  

Sandhya’s Loan

1,20,000

    

Intrest

6,000

1,26,000

   

To Cash/Bank A/c

 

20,000

By Partner’s Capital A/c

  

Contigent Liability

  

(Loss on Realisation)

  
   

Sangeeta

1,800

 
   

Anita

1,800

 
   

Smita

900

4,500

  

6,64,000

  

6,64,000

Dr                                                                                                                                  Partner’s Capital A/c                                                                                                              Cr

Particular

Sangeeta

Anita

Smita

Particular

Sangeeta

Anita

Smita

To Realisation A/c

20,000

  

By Bal b/d

60,000

40,000

30,000

To Realisation A/c

1,800

1,800

900

    

To Cash/Bank A/c

38,200

38,200

29,100

    
 

60,000

40,000

30,000

 

60,000

40,000

30,000

Dr                                                                                                                                Cash/Bank A/c                                                                                                                    Cr

Particular

Amount

Amount

Particular

Amount

Amount

To Bal b/d

 

5,000

By Realisation A/c

 

1,33,000

To Realisation A/c

 

3,79,500

By Realisation A/c

 

1,26,000

   

By Realisation A/c

 

20,000

   

By Sangeeta’s Capital A/c

38,200

 
   

By Anita Capital A/c

38,200

 
   

By Smita Capital A/c

29,100

1,05,500

  

3,84,500

  

3,84,500