[6] Dissolution of Partnership Firm - Practical problem - (Balbharati Book Keeping and Accountancy 12th Board Exam)
Practical problem | Q 7 | Page 247
Saiesh, Sumit, and Hemant were in partnership sharing Profits and Losses in the ratio 2:2:1. They decided to dissolve their partnership firm on 31st March 2019 and their Balance Sheet on that date stood as;
Balance Sheets as on 31st March 2019
Liabilities | Amount ₹ | Assets | Amount ₹ | |
Capital : | Plant | 1,20,000 | ||
Saiesh | 90,000 | Debtors | 45,000 | |
Sumit | 60,000 | Stock | 75,000 | |
Hemant | 30,000 | 1,80,000 | ||
Loan | 12,000 | |||
Sundry Creditors | 9,000 | |||
Bank Overdraft | 39,000 | |||
2,40,000 | 2,40,000 |
It was agreed that;
1. Saiesh to discharge Loan and to take Debtors at book value.
2. Plant realised ₹ 35,000.
3. Stock realised ₹ 72,000.
4. Creditors were paid off at a discount of ₹ 45
Show Realisation A/c, Partners’ Capital A/c and Bank A/c
SOLUTION: In the books of Saiesh, Sumit and Hemant
Realisation Account
Particulars | Amount (₹) | Amount (₹) | Particulars | Amount (₹) | Amount (₹) |
To Sundry Assets A/c | By Sundry Liabilities A/c | ||||
Plant | 1,20,000 | Loan | 12,000 | ||
Debtors | 45,000 | Sundry Creditors | 9,000 | 21000 | |
Stock | 75,000 | 2,40,000 | By Bank A/c | ||
To Bank A/c | 8,955 | Plant | 1,35,000 | ||
Sundry Creditors | Stock | 72,000 | 2,07,000 | ||
To Saiesh’s Capital A/c – Loan | 12,000 | By Saiesh’s Capital A/c | 45,000 | ||
To Partners’ Capital A/c (Profit on realisation transferred) | Debtors | ||||
Saiesh | 4,818 | ||||
Sumit | 4,818 | ||||
Hemant | 2,409 | 12,045 | |||
2,73,000 | 2,73,000 |
Partners’ Capital Accounts
Particulars | Saiesh (₹) | Sumit (₹) | Hemant (₹) | Particulars | Saiesh (₹) | Sumit (₹) | Hemant (₹) |
To Debtors A/c | 45,000 | By Balance b/d | 90,000 | 60,000 | 30,000 | ||
To Bank A/c | 61,818 | 64,818 | 32,409 | By Loan A/c | 12,000 | ||
By realisation A/c – Profit | 4,818 | 4,818 | 2,409 | ||||
1,06,818 | 64,818 | 32,409 | 1,06,818 | 64,818 | 32,409 |
Bank Account
Particulars | Amount (₹) | Particulars | Amount (₹) |
To realisation A/c – (Assets) | 2,07,000 | By Balance b/d (overdraft) | 39,000 |
By realisation A/c | 8,955 | ||
By Saiesh’s Capital A/c | 61,818 | ||
By Sumit’s Capital A/c | 64,818 | ||
By Hemant’s Capital A/c | 32,409 | ||
2,07,000 | 2,07,000 |
