# 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