Balance Sheet as on 31. 03. 2013
Liabilities
|
Rs.
|
Rs.
|
Assets
|
Rs.
|
Rs.
|
Sundry
Creditors
|
12,500
|
Debtors
|
56250
|
||
Bank
overdraft
|
10,000
|
(-) R.D.D.
|
( - ) 6250
|
50,000
|
|
Reserve
Fund
|
15,000
|
Stock
|
1,12,500
|
||
Capital
Accounts
|
Furniture
|
25,000
|
|||
Devendra
|
1,15,000
|
Motor Car
|
37,500
|
||
Ganesh
|
75000
|
190000
|
Cash in
hand
|
2500
|
|
227500
|
227500
|
The
assets realised as follows:
(1)
Debtors Rs. 45,000, stock Rs. 1,00,000 and goodwill Rs. 12,500
(2)
Motor car was taken over by Devendra for Rs. 35,000 and furniture by Ganesh for
Rs. 30,000.
(3)
The creditors were paid Rs. 11,250 in full settlement.
(4)
The realisation expenses were Rs. 5,000.
Pass
necessary journal entries in the books of the firm.
Solution:
Date
|
Particulars
|
LF
|
Debit
|
Credit
|
1.
|
Reserve Fund A/c ……… Dr.
|
15,000
|
||
To Devendra's Capital A/c
|
9000
|
|||
To Ganesh's Capital A/c
|
6000
|
|||
[Being the Reserve fund Transferred
to Partners' capital account at the time of Realisation]
|
||||
2.
|
Realisation A/c …………Dr.
|
231250
|
||
To Debtors
|
56250
|
|||
To Stock
|
112500
|
|||
To Furniture
|
25000
|
|||
Motor car
|
37500
|
|||
[Being the Sundry Assets Transferred
to Realisation A/c at book value]
|
||||
3.
|
Sundry Creditors A/c .... Dr.
|
12500
|
||
To Realisation A/c
|
12500
|
|||
[Being the Sundry Liabilities
transferred to Realisation A/c]
|
||||
4.
|
Cash A/c ……… Dr.
|
157500
|
||
To Realisation A/c [W.N. 1]
|
1,57,500
|
|||
[Being the Sundry Assets Realised]
|
||||
5.
|
Devendra's A/c ………… Dr.
|
35000
|
||
Ganesh's A/c …………… Dr.
|
30,000
|
|||
To Realisation A/c
|
65,000
|
|||
[Being Motor car and Furniture were
taken over by former and later respectively]
|
||||
6.
|
Realisation A/c ………… Dr.
|
11,250
|
||
To Cash A/c
|
11250
|
|||
[Being the Creditors were paid at a
discount on Realisation]
|
||||
7.
|
Realisation A/c ………… Dr.
|
5000
|
||
To Cash A/c
|
5000
|
|||
[Being the realisation expenses
incurred and paid]
|
||||
8.
|
Bank Overdraft A/c ………… Dr.
|
10000
|
||
To Cash A/c
|
10000
|
|||
9.
|
Devendra's Capital A/c .... Dr.
|
3750
|
||
Ganesh's capital A/c .... Dr.
|
2500
|
|||
To Realisation A/c
|
6250
|
|||
[Being loss made on Realisation A/c
Transferred to Partners Capital A/c]
|
||||
10.
|
Devendra's capital A/c ……… Dr
|
85250
|
||
Ganesh's Capital A/c ………… Dr.
|
48500
|
|||
To Cash A/c
|
133750
|
|||
[Being the final settlement is made
between the partners on Realisation]
|
W.N. 1. Realisation A/c
Particulars
|
Rs.
|
Rs.
|
Particulars
|
Rs.
|
Rs.
|
To Sundry Assets A/c
|
By Sundry Liabilities A/c
|
||||
Debtors
|
56250
|
Sundry Creditors
|
12,500
|
||
Stock
|
112500
|
||||
Furniture
|
25000
|
By R.D.D.
|
6250
|
||
Motor Car
|
37500
|
231250
|
|||
To Cash A/c
|
11,250
|
By Cash A/c
|
|||
[Creditors were paid]
|
Debtors
|
45000
|
|||
Stock
|
100000
|
||||
To Cash A/c
|
5000
|
Goodwill
|
12500
|
157500
|
|
[Realisation expenses paid]
|
|||||
By Devendra's Capital A/c
[Motor Car Taken Over]
|
35000
|
||||
By Ganesh 's Capital A/c
[Furniture Taken Over]
|
30,000
|
||||
By Loss On Realisation A/c [3:2]
|
|||||
Devendra
|
3750
|
||||
Ganesh
|
2500
|
6250
|
|||
247500
|
247500
|
W.N. 2. Partners Capital A/c
Particulars
|
Devendra
|
Ganesh
|
Particulars
|
Devendra
|
Ganesh
|
To Realisation A/c
|
35000
|
30000
|
By Balance B/d
|
115000
|
75000
|
To Realisation A/c [3:2]
[Loss on Realisation]
|
3750
|
2500
|
By Reserve Fund
[3:2]
|
9000
|
6000
|
To Cash A/c
[Balancing Fig.]
|
85250
|
48500
|
|||
124000
|
81000
|
124000
|
81000
|
W.N. 3. Cash A/c
Particulars
|
Rs.
|
Rs.
|
Particulars
|
Rs.
|
Rs.
|
To balance B/d
|
2500
|
By Realisation A/c
|
11250
|
||
To Realisation A/c
|
157500
|
By Realisation A/c
|
5000
|
||
By Devendra's Capital A/c
|
85250
|
||||
By Ganesh's Capital A/c
|
48500
|
||||
By Bank's Over Draft A/c
|
10,000
|
||||
160000
|
160000
|
W.N. 4. Bank Overdraft A/c
Particulars
|
Rs.
|
Rs.
|
Particulars
|
Rs.
|
Rs.
|
To Cash A/c
|
10,000
|
By Balance B/d
|
10,000
|
||
10000
|
10000
|
