Umesh and Prakash were partners sharing profit and losses in the proportion of 3/5 and 2/5 respectively. They dissolved their partnership firm on 31st March, 2013, when their financial position was us under: [10]
Balance sheet as on 31st March, 2012
Liabilities
|
Amount
|
Assets
|
Amount
|
Sundry Creditors
|
7500
|
Cash at Bank
|
1500
|
Umesh’s Wife’s Loan
|
15000
|
Debtors 33750
| |
Capital Accounts:
|
Less: R.D.D. - 3750
|
30000
| |
Umesh
|
69000
|
Stock
|
67500
|
Prakash
|
45000
|
Machinery
|
22500
|
Furniture
|
15000
| ||
136500
|
136500
|
(1) The assets realised as under.
Goodwill Rs. 7500; Stock Rs. 60000; Debtors Rs. 27000
(2) Machinery was taken over by Prakash at Rs. 20,000 and furniture by Umesh at book value.
(3) Umesh agreed to discharge his wife’s loan.
(4) The creditors were paid at a rebate of Rs. 1500.
(5) The expenses of dissolution amounted to Rs. 3000
Solution: Journal Entries in the books of the firm.
Date
|
Particulars
|
L.F.
|
Debit
(Rs.)
|
Credit
(Rs.)
|
31.3.13
|
Realisation A/c ... Dr.
|
138750
| ||
To Debtor’s A/c
|
33750
| |||
To Stock A/c
|
67500
| |||
To Machinery A/c
|
22500
| |||
To Furniture A/c
|
15000
| |||
[Being various assets transferred to Realisation A/c at their book value]
| ||||
31.3.13
|
Sundry Creditors A/c .... Dr.
|
7500
| ||
Umesh’s wife’s Loan A/c ... Dr.
|
15000
| |||
R.D.D. A/c ... Dr.
|
3750
| |||
To Realisation A/c
|
26250
| |||
[Being various liabilities and R.D.D. transferred to Realisation A/c at their book value]
| ||||
31.3.13
|
Bank A/c .... Dr.
|
94500
| ||
To Realisation A/c
|
94500
| |||
[Being assets realised]
| ||||
31.3.13
|
Prakash’s A/c ... Dr.
|
20000
| ||
To Realisation A/c
|
20000
| |||
[Being Machinery taken over]
| ||||
31.3.13
|
Umesh Capital A/c ... Dr.
|
15000
| ||
To Realisation A/c
|
15000
| |||
[Being furniture taken over]
| ||||
31.3.13
|
Realisation A/c ... Dr.
|
3000
| ||
To Bank A/c
|
3000
| |||
[Being dissolution expenses paid]
| ||||
31.3.13
|
Realisation A/c ... Dr.
|
15000
| ||
To Umesh’s Capital A/c
|
15000
| |||
[Being wife’s loan taken over]
| ||||
31.3.13
|
Realisation A/c .... Dr.
|
6000
| ||
To Bank A/c
|
6000
| |||
[Being creditors paid off]
| ||||
31.3.13
|
Umesh Capital A/c ...Dr.
|
4200
| ||
Prakash’s Capital A/c ... Dr.
|
2800
| |||
To Realisation A/c
|
7000
| |||
[Being loss on realisation distributed]
| ||||
31.3.13
|
Umesh’s Capital A/c ...Dr.
|
64800
| ||
Prakash Capital A/c ...Dr.
|
22200
| |||
To Bank A/c
|
87000
| |||
