Shilpa and Amruta are partners sharing profits and losses equally. Their balance sheet as on 31.3.2023 was as follows :
Balance Sheet as on 31.03.2023
| Liabilities | ₹ | Assets | ₹ |
|---|---|---|---|
| Bills payable | 20,000 | Cash at Bank | 20,000 |
| Creditors | 40,000 | Debtors | 50,000 |
| Reserve Fund | 20,000 | Stock | 30,000 |
| Bank Loan | 20,000 | Furniture | 20,000 |
| Capital : | Machinery | 30,000 | |
| Shilpa | 70,000 | Building | 90,000 |
| Amruta | 70,000 | ||
| 2,40,000 | 2,40,000 |
On the above date they decided to dissolve the firm.
Additional information :
a) The assets were realised as follows :
Debtors – ₹ 52,000, Stock – ₹ 39,000, Machinery – ₹ 24,000, Building – ₹ 80,000.
b) Furniture was taken over by Shilpa at ₹ 12,000.
c) Liabilities were paid in full by the firm.
d) Realisation expenses were ₹ 3,000.
Prepare :
i) Realisation Account
ii) Partners Capital Account
iii) Bank Account
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Start your 14-day free trial to unlock the full solution →Realisation loss ₹16,000; capitals paid Shilpa ₹60,000, Amruta ₹72,000; Bank foots at ₹2,15,000.
Shilpa and Amruta share equally. Reserve Fund ₹20,000 is shared equally (₹10,000 each). Furniture (book value ₹20,000) is taken over by Shilpa at ₹12,000. Assets realised: Debtors ₹52,000, Stock ₹39,000, Machinery ₹24,000, Building ₹80,000. All outside liabilities paid in full; realisation expenses ₹3,000.
i) Realisation Account:
| Particulars | ₹ | Particulars | ₹ |
|---|---|---|---|
| To Debtors | 50,000 | By Bills payable | 20,000 |
| To Stock | 30,000 | By Creditors | 40,000 |
| To Furniture | 20,000 | By Bank Loan | 20,000 |
| To Machinery | 30,000 | By Bank (assets realised): | |
| To Building | 90,000 | Debtors 52,000 | |
| To Bank (liabilities paid): | Stock 39,000 | ||
| Bills payable 20,000 | Machinery 24,000 | ||
| Creditors 40,000 | Building 80,000 | 1,95,000 | |
| Bank Loan 20,000 | 80,000 | By Shilpa's Capital (furniture) | 12,000 |
| To Bank (realisation expenses) | 3,000 | By Loss transferred: | |
| Shilpa 8,000; Amruta 8,000 | 16,000 | ||
| 3,03,000 | 3,03,000 |
Loss on realisation = 3,03,000 − 2,87,000 = ₹16,000, shared equally ₹8,000 each.
ii) Partners' Capital Accounts:
| Particulars | Shilpa | Amruta | Particulars | Shilpa | Amruta |
|---|---|---|---|---|---|
| To Realisation (furniture) | 12,000 | - | By Balance b/d | 70,000 | 70,000 |
| To Realisation (loss) | 8,000 | 8,000 | By Reserve Fund | 10,000 | 10,000 |
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