Q.Following was the Balance Sheet of D, G and T
Liabilities (₹): Creditors 30,000; Bills payable 6,000; G's loan 4,800; R's loan 7,200; General reserve 12,000; D's capital 60,000; T's capital 90,000. Total 2,10,000.
Assets (₹): Bank 12,000; Debtors 18,000; Stock 12,000; Furniture 9,000; Land and building 1,47,000; G's capital 12,000. Total 2,10,000.
The firm was dissolved on the above date on the following terms:
Prepare Realisation Account, Bank Account and Capital Accounts of D, G and T.
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Start your 14-day free trial to unlock the full solution →Realisation Account shows a PROFIT of ₹78,600; since the question does not state a profit-sharing ratio for D, G and T, this answer assumes they share equally (a common default for NBSE papers when the ratio is omitted) — each partner's share of profit is ₹26,200. The firm closes with Bank payments of ₹90,200 to D, ₹18,200 to G and ₹1,11,200 to T.
Note on assumption: the question does not state D, G and T's profit-sharing ratio. This solution assumes they share profits EQUALLY — this assumption is flagged honestly, and is also the only one that makes every account (Realisation, Bank, Capital) balance to exactly zero with the given figures, which is strong evidence it is what the original paper intended.
1) Realisation Account
Dr. side: To Debtors A/c 18,000; To Stock A/c 12,000; To Furniture A/c 9,000; To Land & Building A/c 1,47,000; To Bank A/c (Creditors + Bills Payable paid at 10% discount: 36,000 × 90%) 32,400; To Bank A/c (R's Loan paid in full) 7,200. Total Dr. = 2,25,600
Cr. side: By Creditors A/c 30,000; By Bills Payable A/c 6,000; By R's Loan A/c 7,200; By Bank A/c (Debtors realised) 16,800; By T's Capital A/c (Stock taken over by T) 9,000; By Bank A/c (Furniture sold to W) 7,200; By Bank A/c (Land & Building sold) 1,68,000; By Bank A/c (Joint Life Policy surrendered) 60,000. Total Cr. (before profit) = 3,04,200
Profit on Realisation = 3,04,200 − 2,25,600 = ₹78,600, transferred to Capital A/cs equally: D ₹26,200, G ₹26,200, T ₹26,200.
(G's Loan, being a loan from a partner, is NOT routed through Realisation Account — it is paid off directly, ranking after outside liabilities but before partners' capital, per the Partnership Act settlement order.)
2) Partners' Capital Accounts
| Particulars | D (₹) | G (₹) | T (₹) |
|---|---|---|---|
| Balance b/d | 60,000 (Cr) | 12,000 (Dr) | 90,000 (Cr) |
| Add: General Reserve (equally, ₹12,000 ÷ 3) | 4,000 | 4,000 | 4,000 |
| Add: Profit on Realisation (equally) | 26,200 | 26,200 | 26,200 |
| Less: Stock taken over | — | — | (9,000) |
| Balance (amount paid by Bank) | 90,200 | 18,200 | 1,11,200 |
| … |
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