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Question 16 of 33
Q.

Asha, Usha and Nisha are partners in the firm sharing profits and losses in the ratio of 3 : 2 : 1 respectively. On 31st March, 2019 they decided to dissolve the firm when their Balance Sheet was as under:

Balance Sheet as on 31st March, 2019
LiabilitiesAmount (₹)AssetsAmount (₹)
Creditors28,800Building1,02,000
Bills Payable21,600Machinery73,000
Capitol Accounts:Motor Car1,67,600
Asha2,27,160Goodwill45,600
Usha1,44,000Investment62,400
Nisha1,08,000Debtors30,600
Stock45,000
Bank3,360
5,29,5605,29,560
The firm was dissolved on the above date and the assets realised as under:
Asha agreed to take over the Building at ₹ 1,23,600
Usha took over Goodwill Stock and Debtors at book value and agreed to pay Creditors and Bills payable.
Motor car and Machinery realised at ₹ 1,51,080 and ₹ 31,680 respectively.
Investment were taken by Nisha at an agreed value of ₹ 55,440.
Realisation Expenses amounted to ₹ 6,800.
Prepare:
Realisation Account
Partners' Capital Account
Bank Account
Maharashtra MsbshseMaharashtra HSC (MSBSHSE) Board 2022Subjective· 10mImportance★★★★★
48% · 16/33 Questions
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The firm is dissolved. Assets are taken over by partners or realised in cash; Usha assumes the creditors and bills payable. Realisation produces a loss of ₹50,000 shared 3:2:1. All partners have credit balances, paid off through the Bank Account (total ₹1,86,120).

Working Note 1 — Take-overs

Asha takes Building at ₹1,23,600. Usha takes Goodwill 45,600 + Stock 45,000 + Debtors 30,600 = ₹1,21,200 (book value) and pays Creditors 28,800 + Bills Payable 21,600 = ₹50,400. Nisha takes Investment at ₹55,440. Motor Car ₹1,51,080 and Machinery ₹31,680 realised in cash.

Working Note 2 — Loss on realisation

Book value of assets transferred ₹5,26,200 + expenses ₹6,800 = ₹5,33,000 debit against realisation of ₹4,83,000 ⇒ loss ₹50,000, shared 3:2:1.

Realisation Account

Dr. ParticularsAmount (₹)Cr. ParticularsAmount (₹)
To Building A/c1,02,000By Creditors A/c28,800
To Machinery A/c73,000By Bills Payable A/c21,600
To Motor Car A/c1,67,600By Asha's Capital A/c (Building)1,23,600
To Goodwill A/c45,600By Usha's Capital A/c (Goodwill+Stock+Debtors)1,21,200
To Investment A/c62,400By Bank A/c (Motor Car)1,51,080
To Debtors A/c30,600By Bank A/c (Machinery)31,680
To Stock A/c45,000By Nisha's Capital A/c (Investment)55,440
To Usha's Capital A/c (Creditors & B/P taken over)50,400By Loss t/f to Capital A/cs — Asha 25,000, Usha 16,666.67, Nisha 8,333.3350,000
To Bank A/c (Realisation expenses)6,800
Total5,83,400Total5,83,400

Partners' Capital Accounts

Dr. ParticularsAshaUshaNishaCr. ParticularsAshaUshaNisha
To Realisation A/c (assets taken over)1,23,6001,21,20055,440By Balance b/d2,27,1601,44,0001,08,000

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