Practical Problem 09

Practical problem | Q 9 | Page 248

Following is the Balance Sheet of Vaibhav, Sanjay and Santosh
Balance Sheets as on 31st March 2019.
Liabilities	Amount	Assets	Amount
Capital :		Machinery	6,000
Vaibhav	36,000	Goodwill	9,000
Sanjay	27,000	Stock and Debtors	57,000
Creditors	12,000	Profit and Loss Account	18,000
Bank Overdraft	18,000	Santosh’s Capital	3,000
	93,000		93,000
Santosh is declared insolvent so firm is dissolved and assets realised as follows :
1. Stock and Debtors ` 54,000, Goodwill – NIL, Machinery at Book value.
2. Creditors allowed discount at 10%.
3. Santosh could pay only 25 paise in rupee of the balance due.
4. Profit sharing ratio was 8:4:3.
5. A contingent liability against the firm ` 9,000 is cleared.
Give Ledger Account to close the books of the firm.

SOLUTION :

IN THE BOOKS OF FIRM
Dr Realisation A/c Cr
Particular	Amt	Amt	Particular	Amt	Amt
To Sundry Asset			By Sundry Liability		12,000
Machinery	6,000		Creditors
Goodwill	9,000
Stock and Debtors	57,000	72,000	By Bank A/c
			Stock and Debtors	54,000
To Bank A/c			Machinery	6,000	60,000
Creditor	10,800
Contingent LIABILITY	9,000	19,800	By Partner’s Capital A/c
			(loss on Realisation)
			Vaibhav	10,560
			Sanjay	5,280
			Santosh	3,960	19,800
		91,800			91,800

Dr Partner’s Capital A/c Cr
Particular	Vaibhav	Sanjay	Santosh	Particular	Vaibhav	Sanjay	Santosh
To Balance b/d			3,000	By Balance b/d	36,000	27,000
To Profit and Loss Account	9,600	4,800	3,600	By Bank A/c			2,640
To Realisation A/c (loss)	10,560	5,280	3,960
To Santosh Capital A/c	5,280	2,640
To Bank A/c	10,560	14,280		By Vaibhav’s Capital A/c			5,280
				By Sanjay Capital A/c			2,640


	36,000	27,000	10,560		36,000	27,000	10,560

Dr Bank A/c Cr
Particular	Amount	Amount	Particular	Amount	Amount
To Realisation A/c		60,000	By Balance b/d		18,000
To Santosh’s Capital A/c		2,640	By Realisation A/c		19,800
			By Vaibhav’s Capital A/c		10,560
			By Sanjay Capital A/c		14,280
		62,640			62,640