Rahul, Rohit and Ramesh were partners in a firm sharing profits and losses in the ratio of 2:2:1 respectively. The Balance Sheet as on 31.03.2013 was as follows: [10]

Balance Sheet as on 31st Mar, 2013

Liabilities	Amount (Rs. )	Assets	Amount (Rs.)	Amount (Rs.)
Sundry Creditors	20000	Cash at Bank		8000
Bills Payable	5000	Debtors	16000
General Reserve	6000	Less: R.D.D.	-1000	15000
Rahul’s Loan A/c	16000	Stock		20000
Capital Account		Plant and Machinery		30000
Rahul	25000	Furniture		6000
Rohit	10000	Ramesh’s Capital Account		3000
	82000			82000

The firm was dissolved on the above date:

(1) Assets realised as follows:

Debtors Rs.  9,000, Plant and Machinery Rs. 26,000, Stock Rs.  14,000, and Furniture Rs.  3,000.

(2) The creditors were paid Rs. 18,000, in full settlement and the bills payable were paid in full.

(3) The realisation expenses amounted to Rs. 3,000.

(4) Ramesh became insolvent and was able to bring in only Rs. 1,800 from his private estate.

Prepare:

(1) Realisation account

(2) Partner’s capital account and

(3) Bank account.

Solution: In the books of Rahul, Rohit and Ramesh

Realisation A/c

Particulars	Amount Rs.	Amount Rs.	Particulars	Amount Rs.	Amount Rs.
To Sundry Assets			By R.D.D. A/c		1000
Debtors	16000		By Sundry Liabilities
Stock	20000		Sundry Creditors	20000
Plant and Machinery	30000		Bills Payable	5000	25000
Furniture	6000	72000	By Bank A/c
To Bank A/c			Debtors	9000
Creditors	18000		Plant and Machinery	26000
Bills Payable	5000		Stock	14000
Realisation Expenses	3000	26000	Furniture	3000	52000
			By Loss on realisation.
			Rahul	8000
			Rohit	8000
			Ramesh	4000	20000
		98000			98000

Partners Capital A/c

Particulars	Rahul	Rohit	Ramesh	Particulars	Rahul	Rohit	Ramesh
To balance b/d			3000	By Balance b/d	25000	10000	-
To Loss on Realisation A/c	8000	8000	4000	By General Reserve	2400	2400	1200
To Ramesh A/c	2000	2000		By Bank A/c			1800
				By Rahul's Capital A/c			2000
				By Rohit's Capital A/c			2000
To Balance C/d	17400	2400
	27400	12400	7000		27400	12400	7000

Bank A/c

Particulars	Amount Rs.	Amount Rs.	Particulars	Amount Rs.	Amount Rs.
To Balance b/d		8000	By Realisation A/c		26000
To Realisation A/c		52000	By Rahul’s loan A/c		16000
To Ramesh's Capital A/c		1800	By Rahul’s Capital A/c		17400
			By Rohit’s Capital A/c		2400
		61800			61800

Rahul/s Loan A/c

Particulars	Amount Rs.	Amount Rs.	Particulars	Amount Rs.	Amount Rs.
To Bank A/c		16000	By Balance b/d		16000
		16000			16000