Mohan and Manju are partners in a firm sharing profit and losses in the ratio of 3 : 2 respectively. Their Balance Sheet as on 31.03.2022 was as under :
Balance Sheet as on 31.03.2022
| Liabilities | ₹ | Assets | ₹ |
|---|---|---|---|
| Creditors | 30,000 | Cash at Bank | 10,000 |
| Bills Payable | 10,000 | Bills Receivable | 8,000 |
| Mohan's loan | 5,000 | Debtors | 30,000 |
| Reserve Fund | 15,000 | Stock | 17,000 |
| Capital Account ; | Furniture | 10,000 | |
| Mohan | 60,000 | Machinery | 25,000 |
| Manju | 40,000 | Building | 60,000 |
| 1,60,000 | 1,60,000 |
On the above date the firm was dissolved ;
a) The assets were realized as follows ;
Bills receivable 6,500
Debtors 25,000
Stock 15,000
Machinery 22,000
Building 65,000
b) Furniture was taken over by Manju for 9,000
c) All the liabilities were paid in full
d) Dissolution expenses 2,000
Prepare ;
i) Realisation account
ii) Partner's capital account
iii) Bank account
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Start your 14-day free trial to unlock the full solution →Realisation loss ₹9,500 shared 3:2; Reserve Fund ₹15,000 shared 3:2; Mohan gets ₹63,300, Manju ₹33,200; Bank ties at ₹1,43,500.
i) Realisation Account
| Dr. Particulars | ₹ | Cr. Particulars | ₹ |
|---|---|---|---|
| To Bills Receivable | 8,000 | By Creditors | 30,000 |
| To Debtors | 30,000 | By Bills Payable | 10,000 |
| To Stock | 17,000 | By Bank (assets realised): | |
| To Furniture | 10,000 | Bills Receivable 6,500 | |
| To Machinery | 25,000 | Debtors 25,000 | |
| To Building | 60,000 | Stock 15,000 | |
| To Bank (Creditors paid) | 30,000 | Machinery 22,000 | |
| To Bank (Bills Payable paid) | 10,000 | Building 65,000 = 1,33,500 | 1,33,500 |
| To Bank (Dissolution expenses) | 2,000 | By Manju's Capital (Furniture taken over) | 9,000 |
| By Loss transferred: Mohan 5,700; Manju 3,800 | 9,500 | ||
| Total | 1,92,000 | Total | 1,92,000 |
ii) Partners' Capital Accounts
| Particulars | Mohan (₹) | Manju (₹) |
|---|---|---|
| By Balance b/d | 60,000 | 40,000 |
| By Reserve Fund (3:2) | 9,000 | 6,000 |
| To Realisation (loss 3:2) | 5,700 | 3,800 |
| To Realisation (Furniture taken over) | — | 9,000 |
| To Bank (final payment) | 63,300 | 33,200 |
(Mohan: 69,000 − 5,700 = 63,300; Manju: 46,000 − 3,800 − 9,000 = 33,200.)
iii) Bank Account
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