Practical Problem 08

Practical problem | Q 8 | Page 248

Sitaram, Gangaram and Rajaram are partners sharing Profits and Losses in the ratio of 4:2:3.
On 1st April 2019 they agreed to dissolve the partnership, their
Balance Sheet was as follows :
Balance Sheets as on 31st March 2019.
Liabilities	Amount	Assets	Amount
Captital :		Building	55,000
Sitaram	65,000	Machinery	25,000
Gangaram	45,000	Furniture	12,000
Rajaram	7,000	Investment	15,000
Reserve Fund	18,000	Bills Receivable	3,500
Profit and Loss Account	5,400	Sundry Debtors	21,000
Loan from Tukaram	10,000	Stock	28,000
Sundry Creditors	12,000	Cash in hand	5,500
Bills Payable	4,600	Cash at Bank	2,000
	1,67,000		1,67,000
The assets realised : Building ` 46,750 Machinery Rs 18,550 Furniture Rs 9,600;
Investment Rs 10,650 Bill Receivable and Debtors Rs 20,750; All the liabilities were
paid off. The cost of realisation was Rs 800. Rajaram becomes bankrupt and
Rs 1,100 only was recovered from his estate.
Show Realisation Account, Bank Account and Capital Account of the partners.

SOLUTION :

IN THE BOOKS OF FIRM
Dr Realisation A/c Cr
Particular	Amt	Amt	Particular	Amt	Amt
To Sundry Asset			By Sundry Liability
Building	55,000		Loan from Tukaram	10,000
Machinery	25,000		Sundry Creditors	12,000
Furniture	12,000		Bills Payable	4,600	26,600
Investment	15,000
Bills Receivable	3,500		By Bank A/c :
Sundry Debtors	21,000		Building	46,750
Stock	28,000	1,59,500	Machinery	18,550
			Furniture	9,600
To Bank			Investment	10,650
Realisation Expense	800		Bills Receivable & Debtors	20,750	1,06,300
Loan from Tukaram	10,000
Sundry Creditors	12,000		By Partner’s Capital A/c
Bills Payable	4,600	27,400	(Loss on Realisation )
			Sitaram	24,000
			Gangaram	12,000
			Rajaram	18,000	54,000
		1,86,900			1,86,900

Dr Partner’s Capital A/c Cr
Particular	Sitaram	Gangaram	Rajaram	Particular	Sitaram	Gangaram	Rajaram
To Realisation A/c (Loss)	24,000	12,000	18,000	By Bal b/d	65,000	45,000	7,000
To Rajaram Capital A/c	1,400	700		By Reserve Fund A/c	8,000	4,000	6,000
To Bank A/c	50,000	37,500		By Profit and Loss A/c	2,400	1,200	1,800
				By Bank A/c (Amount Received)			1,100
				By Sitaram’s Capital A/c			1,400
				By Gangaram’s Capital A/c			700

	75,400	50,200	18,000		75,400	50,200	18,000

Dr Bank A/c Cr
Particular	Amount	Amount	Particular	Amount	Amount
To Bal b/d		2,000	By Realisation A/c		27,400
To Cash A/c		5,500	By Sitaram’s Capital A/c		50,000
To Realisation A/c		1,06,300	By Gangaram’s Capital A/c		37,500
To Rajaram’s Capital A/c		1,100
		1,14,900			1,14,900