# Practical Problem 02

##### SOLUTION :
 Journal Entries Date Particular Amount Amount 1 Realisation A/c ………………………………………………………………………………………..……………..……………..……………...…………………………..Dr 5,26,200 To Building A/c 1,02,000 To Machinery 73,000 To Motor Car 1,67,600 To Goodwill 45,600 To Investment 62,400 To Debtors 30,600 To Stock 45,000 (Being Asset transfer to realisation A/c) 2 Creditors ………………………………………………………………………………………..……………..……………..……………………………………...…………………………..Dr 28,800 Bills Payable………………………………………………………………………………………..……………..……………..……………...…………………………………………….Dr 21,600 To Realisation A/c 50,400 (Being Sundry Liability transfer to Realisation A/c) 3 Leela’s Capital A/c ………………………………………………………………………………………..……………..……………..……………...…………………………..Dr 1,23,600 To Realisation A/c 1,23,600 (Being Building taken over by Leela) 4 Manda’s Capital A/c ………………………………………………………………………………………..……………..……………..……………...…………………………..Dr 1,21,200 To Realisation A/c 1,21,200 (Being Goodwill, Stock and Debtors taken over by Manda) 5 Realisation A/c ………………………………………………………………………………………..……………..……………………..…..……………...…………………………..Dr 50,400 To Manda’s Capital A/c 50,400 (Being Creditor’s and Bill Payable takenover by Manda) 6 Cash A/c………………………………………………………………………………………..……………..……………..…………………………………..…...…………………………..Dr 1,82,760 To Realisation A/c 1,82,760 (Being Motor Car & Machinery Sold) 7 Kunda Capital A/c ………………………………………………………………………………………..……………..……………..……………..…...…………………………..Dr 55,440 To Realisation A/c 55,440 (Being Investment taken over by Kunda) 8 Realisation A/c ………………………………………………………………………………………..……………………….……………..……………...…………………………..Dr 6,800 To Cash A/c 6,800 (Being Realisation Expenses Paid) 9 Leela Capital A/c…………………………………………………………………………………………..……………..……………..……………...…………………………..Dr 25,000 Manda Capital A/c …………………………………………………………………………………………….….…..……………..……………...…………………………..Dr 16,667 Kunda Capital A/c ………………………………………………………………………………………..……………..……………..……………...…………………………..Dr 8,333 To Realisation A/c 50,000 (Being Realisation loss on realisation transfer to partners) 10 Leela Cpaital A/c……………………………………………………………………………………………..……………..……………..……………...…………………………..Dr 78560 Manda Capital A/c ……………………………………………………………………………………….……….…..……………..……………...…………………………..Dr 56,533 Kunda Capital A/c ………………………………………………………………………………………..……………..……………..……………...…………………………..Dr 44,227 To Cash  A/c 1,79,320 (Bing Cash Paid to Partners on Dissolution)

Working:

 Dr                                                                                                                                 Realisation A/c                                                                                                                               Cr Particulars Amount Amount Particulars Amount Amount To Sundry Assets A/c By Sundry Liabilities A/c Building 1,02,000 Creditors 28,800 Machinery 73,000 Bills Payable 21,600 50,400 Motor car 1,67,600 By Bank A/c Goodwill 45,600 Motor Car 1,51,080 Investments 62,400 Machinery 31,680 1,82,760 Debtors 30,600 By Leela’s Capital A/c 1,23,600 Stock 45,000 5,26,200 Building To Bank A/c By Manda’s Capital A/c Realisation Expense 6,800 Goodwill 45,600 To Manda’s Capital A/c Stock 45,000 Creditors 28,800 Debtors 30,600 1,21,200 Bills Payable 21,600 50,400 By Kunda’s Capital A/c 55,440 Investments By Partners’ Capital A/c (Loss on realisation transferred) Leela 25,000 Manda 16,667 Kunda 8,333 50,000 583400 583400