[6] Dissolution of Partnership Firm - Practical problem - (Balbharati Book Keeping and Accountancy 12th Board Exam)
Practical problem | Q 3 | Page 245
Shailesh and Shashank were partners sharing Profits and Losses in the ratio of 3:2. Their Balance Sheet as on 31st March 2019 was as follows.
Balance Sheets as on 31st December 2019.
Liabilities | Amount ₹ | Assets | Amount ₹ |
Capital Account : | Building | 7000 | |
Shailesh | 10,000 | Plant | 9,000 |
Shashank | 6,000 | Debtors | 14,000 |
Current Account : | Stock | 5,000 | |
Shailesh | 3,000 | Bank | 6,000 |
Shashank | 2,000 | ||
Creditors | 17,400 | ||
Bills payable | 2,600 | ||
41,000 | 41,000 |
The firm was dissolved on the above date and the assets realised as under.
1. Plant ₹ 8,000, Building ₹ 6,000, Stock ₹ 4,000 and Debtors ₹ 12,000.
2. Shailesh agreed to pay of the Bills Payable.
3. Creditors were paid in full.
4. Dissolution expenses were ₹ 1,400
Prepare Realisation A/c, Partners Current A/c, Partners Capital A/c, and Bank A/c
SOLUTION: In the books of Shailesh and Shashank
Realisation Account
Dr | Cr | ||||
Particulars | Amount (₹) | Amount (₹) | Particulars | Amount (₹) | Amount (₹) |
To Sundry Assets A/c | By Sundry Liabilities A/c | ||||
Building | 7,000 | Creditors | 17,400 | ||
Plant | 9,000 | Bills Payable | 2,600 | 20,000 | |
Debtors | 14,000 | By Bank A/c | |||
Stock | 5,000 | 35000 | Plant | 8,000 | |
To Shailesh’s Current A/c | Building | 6,000 | |||
Bills Payable | 2,600 | Stock | 4,000 | ||
To Bank A/c | Debtors | 12,000 | 30,000 | ||
Dissolution Expense | 1,400 | By Partners’ Current A/c (Loss on realisation transferred | |||
Creditors | 17,400 | 18,800 | Shailesh | 3,840 | |
Shashank | 2,560 | 6,400 | |||
56,400 | 56,400 |
Partners’ Current Account
Dr | Cr | ||||
Particulars | Shailesh (₹) | Shashank (₹) | Particulars | Shailesh (₹) | Shashank (₹) |
To realisation A/c – Loss | 3,840 | 2,560 | By Balance b/d | 3,000 | 2000 |
To Partners’ Capital A/c | 1,760 | By Bills Payable A/c | 2,600 | ||
By Partners’ Capital A/c | 560 | ||||
5,600 | 2,560 | 5,600 | 2,560 |
Partners’ Capital Account
Dr | Cr | ||||
Particulars | Shailesh (₹) | Shashank (₹) | Particulars | Shailesh (₹) | Shashank (₹) |
To Partner's current A/c | 560 | By Balance b/d | 10,000 | 6000 | |
To Bank A/c | 11,760 | 5,440 | By Partner’s Current A/c | 1,760 | |
11,760 | 6,000 | 11,760 | 6000 |
Bank Account
Dr | Cr | ||
Particulars | Amount (₹) | Particulars | Amount (₹) |
To Balance b/d | 6,000 | By realisation A/c (Exp. and Liabilities) | 18,800 |
To realisation A/c (Assets) | 30,000 | By Shailesh’s Capital A/c | 11,760 |
By Shashank’s Capital A/c | 5,440 | ||
36,000 | 36,000 |
