Sunday, February 5, 2017

Rahul, Rohit and Ramesh were partners in a firm sharing profits and losses in the ratio of 2:2:1 respectively. The Balance Sheet as on 31.03.2013 was as follows: [10]

Balance Sheet as on 31st Mar, 2013


Liabilities
Amount
(Rs. )
Assets
Amount
(Rs.)
Amount
(Rs.)
Sundry Creditors
20000
Cash at Bank

8000
Bills Payable
5000
Debtors
16000

General Reserve
6000
Less: R.D.D.
-1000
15000
Rahul’s Loan A/c
16000
Stock

20000
Capital Account

Plant and Machinery

30000
Rahul
25000
Furniture

6000
Rohit
10000
Ramesh’s Capital Account

3000






82000


82000


The firm was dissolved on the above date:


(1) Assets realised as follows:
Debtors Rs.  9,000, Plant and Machinery Rs. 26,000, Stock Rs.  14,000, and Furniture Rs.  3,000.


(2) The creditors were paid Rs. 18,000, in full settlement and the bills payable were paid in full.


(3) The realisation expenses amounted to Rs. 3,000.


(4) Ramesh became insolvent and was able to bring in only Rs. 1,800 from his private estate.


Prepare:
(1) Realisation account
(2) Partner’s capital account and
(3) Bank account.


Solution: In the books of Rahul, Rohit and Ramesh
Realisation A/c


Particulars
Amount
Rs.
Amount
Rs.
Particulars
Amount
Rs.
Amount
Rs.
To Sundry Assets


By R.D.D. A/c

1000
Debtors
16000

By Sundry Liabilities


Stock
20000

Sundry Creditors
20000

Plant and Machinery
30000

Bills Payable
5000
25000
Furniture
6000
72000
By Bank A/c


To Bank A/c


Debtors
9000

Creditors
18000

Plant and Machinery
26000

Bills Payable
5000

Stock
14000

Realisation Expenses
3000
26000
Furniture
3000
52000



By Loss on realisation.





Rahul
8000




Rohit
8000




Ramesh
4000
20000








98000


98000


Partners Capital A/c


Particulars
Rahul
Rohit
Ramesh
Particulars
Rahul
Rohit
Ramesh
To balance b/d


3000
By Balance b/d
25000
10000
-
To Loss on Realisation A/c
8000
8000
4000
By General Reserve
2400
2400
1200
To Ramesh A/c
2000
2000

By Bank A/c


1800




By Rahul's Capital A/c


2000




By Rohit's Capital A/c 

2000
To Balance C/d
17400
2400






27400
12400
7000

27400
12400
7000


Bank A/c


Particulars
Amount
Rs.
Amount
Rs.
Particulars
Amount
Rs.
Amount
Rs.
To Balance b/d

8000
By Realisation A/c

26000
To Realisation A/c

52000
By Rahul’s loan A/c

16000
To Ramesh's Capital A/c
1800
By Rahul’s Capital A/c

17400



By Rohit’s Capital A/c

2400


61800


61800


Rahul/s Loan A/c


Particulars
Amount
Rs.
Amount
Rs.
Particulars
Amount
Rs.
Amount
Rs.
To Bank A/c

16000
By Balance b/d

16000


16000


16000