Q.Sunu, Nanu and Nidhi are partners in a firm sharing profits in the ratio of 2 : 1 : 1. Their Balance Sheet as on 31st March, 2021 was as under:
Liabilities | Rs. | Assets | Rs.
Creditors | 50,000 | Land and Building | 80,000
Capital: Sunu 80,000; Nanu 80,000; Nidhi 60,000 | 2,20,000 | Plant and Machinery | 56,000
| | Furniture | 30,000
| | Motor Car | 54,000
| | Debtors | 48,000
| | Cash | 2,000
Total | 2,70,000 | Total | 2,70,000
The firm was dissolved on the above date. The assets realised as follows:
Furniture = Rs. 20,000.
Land and Building = Rs. 1,00,000.
Plant and Machinery = Rs. 50,000.
Motor Car = Rs. 28,000.
Debtors = 50% of Book Value.
Realisation Expenses were Rs. 2,000.
Prepare Realisation A/c, Partner's Capital A/c and Cash A/c to close the books of the firm.
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Start your 14-day free trial to unlock the full solution →Realisation loss Rs. 48,000; Sunu paid Rs. 56,000, Nanu Rs. 68,000, Nidhi Rs. 48,000.
Realisation Account
Particulars | Rs. || Particulars | Rs.
To Land and Building | 80,000 || By Creditors | 50,000
To Plant and Machinery | 56,000 || By Cash (assets realised): |
To Furniture | 30,000 || Furniture 20,000 + L&B 1,00,000 + |
To Motor Car | 54,000 || P&M 50,000 + Motor Car 28,000 + |
To Debtors | 48,000 || Debtors 24,000 = 2,22,000 | 2,22,000
To Cash (creditors paid) | 50,000 || By Loss transferred: Sunu 24,000; Nanu 12,000; Nidhi 12,000 | 48,000
To Cash (realisation expenses) | 2,000 ||
Total | 3,20,000 || Total | 3,20,000
Partners' Capital Accounts
Particulars | Sunu | Nanu | Nidhi || Particulars | Sunu | Nanu | Nidhi
To Realisation (loss) | 24,000 | 12,000 | 12,000 || By Balance b/d | 80,000 | 80,000 | 60,000
To Cash (final) | 56,000 | 68,000 | 48,000 ||
Total | 80,000 | 80,000 | 60,000 || Total | 80,000 | 80,000 | 60,000
Cash Account
Particulars | Rs. || Particulars | Rs. …
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