Sangeeta, Anita and Smita were in partnership sharing Profits and Losses in the ratio 2:2:1. Their Balance Sheet as on 31st March 2019 was as under : - Book Keeping and Accountancy

[6] Dissolution of Partnership Firm - Practical problem - (Balbharati Book Keeping and Accountancy 12th Board Exam)


Practical problem | Q 6 | Page 246

Sangeeta, Anita, and Smita were in partnership sharing Profits and Losses in the ratio 2:2:1. Their Balance Sheet as on 31st March 2019 was as under :

Balance Sheets as on 31st March 2019

Liabilities

Amount ₹

Assets

Amount ₹

Capital :


Land

2,10,000

Sangeeta

60,000

Plant

20,000

Anita

40,000

Goodwill

15,000

Smita

30,000

Debtors

1,25,000

Sangeeta’s Loan A/c

1,20,000

Loans and Advances

15,000

Sundry Creditors

1,20,000

Bank

5,000

Bills Payable

20,000




3,90,000


3,90,000


They decided to dissolve the firm as follows :

1. Assets realised as; Land recovered  1,80,000; Goodwill for  75,000; Loans and Advances realised  12,000; 10% of the Debts proved bad;

2. Sangeeta took Plant at book value.

3. Creditors and Bills payable paid at 5% discount.

4. Sandhya’s Loan was discharged along with  6,000 as Interest.

5. There was a contingent liability in respect of bills of  1,00,000 which was under discount. Out of them, a holder of one bill of  20,000 became insolvent

Show Realisation Account, Partners Capital Account, and Bank Account.

SOLUTION: In the books of Sangeeta, Anita and Smita 

Realisation Account

Particulars

Amount (₹)

Amount (₹)

Particulars

Amount (₹)

Amount (₹)

To Sundry Assets A/c



By Sundry Liabilities A/c



Land

2,10,000


Sundry Creditors

1,20,000


Plant

20,000


Bills Payable

20,000


Goodwill

15,000


Sandhya’s Loan

1,20,000

2,60,000

Debtors

1,25,000


By Sangeeta’s Capital A/c

(Plant)


20,000

Loans and Advances

15,000

3,85,000

By Bank A/c



To Bank A/c



Land

1,80,000


Creditors

1,14,000


Goodwill

75,000


Bills Payable

19,000

1,33,000

Loans and Advances

12,000


To Bank A/c



Debtors

1,12,500

3,79,500

Sandhya’s Loan


1,26,000

By Partners’ Capital A/c (Loss on realisation transferred)



To Bank A/c

(Contingent liability paid)


20,000

Sangeeta

1,800





Anita

1,800





Smita

900

4,500



6,64,000



6,64,000

 

Partners’ Capital Accounts

Particulars

Sangeeta (₹)

Anita (₹)

Smita (₹)

Particulars

Sangeeta (₹)

Anita (₹)

Smita (₹)

To Realisation A/c

20,000



By Balance b/d

60,000

40,000

30,000

To Realisation A/c – Loss

1,800

1,800

900





To Bank A/c

38,200

38,200

29,100






60,000

40,000

30,000


60,000

40,000

30,000

 

Bank Account

Dr


Cr


Particulars

Amount (₹)

Particulars

Amount (₹)

To Balance b/d

5,000

By Sandhya’s Loan A/c

1,26,000

To realisation A/c – Assets

3,79,500

By realisation A/c

20,000



By realisation A/c – Liabilities

1,33,000



By Sangeeta’s Capital A/c

38,200



By Anita’s Capital A/c

38,200



By Smita’s Capital A/c

29,100


3,84,500


3,84,500


Working Notes :

(1) Amount paid towards Sandhya’s Loan = Loan amount + Interest due on loan

= 1,20,000 + 6,000 =  1,26,000

(2) Amount received from Debtors = Debtors – Bad debts

= 1,25,000 – 10 % of 1,25,000 = 1,25,000  – 12,500

 1,12,500

(3) Amount paid to Creditors = Creditor – 5 % discount

= 1,20,000 – 5 % on 1,20,000

= 1,20,000 – 6,000

 1,14,000

(4) Amount paid towards Bills payable = Bills payable  –  5 % discount

= 20,000 –  5 % on 20,000

= 20,000  – 1,000 =

 19,000

(5) Bill of   1,00,000 was discounted with the Bank. On the due date bank could not recover  20,000 from one bill holder as he was declared insolvent. Therefore, we required to settle that contingent liability of  20,000.

PDF FILE TO YOUR EMAIL IMMEDIATELY PURCHASE NOTES & PAPER SOLUTION. @ Rs. 50/- each (GST extra)

HINDI ENTIRE PAPER SOLUTION

MARATHI PAPER SOLUTION

SSC MATHS I PAPER SOLUTION

SSC MATHS II PAPER SOLUTION

SSC SCIENCE I PAPER SOLUTION

SSC SCIENCE II PAPER SOLUTION

SSC ENGLISH PAPER SOLUTION

SSC & HSC ENGLISH WRITING SKILL

HSC ACCOUNTS NOTES

HSC OCM NOTES

HSC ECONOMICS NOTES

HSC SECRETARIAL PRACTICE NOTES

2019 Board Paper Solution

HSC ENGLISH SET A 2019 21st February, 2019

HSC ENGLISH SET B 2019 21st February, 2019

HSC ENGLISH SET C 2019 21st February, 2019

HSC ENGLISH SET D 2019 21st February, 2019

SECRETARIAL PRACTICE (S.P) 2019 25th February, 2019

HSC XII PHYSICS 2019 25th February, 2019

CHEMISTRY XII HSC SOLUTION 27th, February, 2019

OCM PAPER SOLUTION 2019 27th, February, 2019

HSC MATHS PAPER SOLUTION COMMERCE, 2nd March, 2019

HSC MATHS PAPER SOLUTION SCIENCE 2nd, March, 2019

SSC ENGLISH STD 10 5TH MARCH, 2019.

HSC XII ACCOUNTS 2019 6th March, 2019

HSC XII BIOLOGY 2019 6TH March, 2019

HSC XII ECONOMICS 9Th March 2019

SSC Maths I March 2019 Solution 10th Standard11th, March, 2019

SSC MATHS II MARCH 2019 SOLUTION 10TH STD.13th March, 2019

SSC SCIENCE I MARCH 2019 SOLUTION 10TH STD. 15th March, 2019.

SSC SCIENCE II MARCH 2019 SOLUTION 10TH STD. 18th March, 2019.

SSC SOCIAL SCIENCE I MARCH 2019 SOLUTION20th March, 2019

SSC SOCIAL SCIENCE II MARCH 2019 SOLUTION, 22nd March, 2019

XII CBSE - BOARD - MARCH - 2019 ENGLISH - QP + SOLUTIONS, 2nd March, 2019

HSC Maharashtra Board Papers 2020

(Std 12th English Medium)

HSC ECONOMICS MARCH 2020

HSC OCM MARCH 2020

HSC ACCOUNTS MARCH 2020

HSC S.P. MARCH 2020

HSC ENGLISH MARCH 2020

HSC HINDI MARCH 2020

HSC MARATHI MARCH 2020

HSC MATHS MARCH 2020

SSC Maharashtra Board Papers 2020

(Std 10th English Medium)

English MARCH 2020

HindI MARCH 2020

Hindi (Composite) MARCH 2020

Marathi MARCH 2020

Mathematics (Paper 1) MARCH 2020

Mathematics (Paper 2) MARCH 2020

Sanskrit MARCH 2020

Sanskrit (Composite) MARCH 2020

Science (Paper 1) MARCH 2020

Science (Paper 2)

MUST REMEMBER THINGS on the day of Exam

Are you prepared? for English Grammar in Board Exam.

Paper Presentation In Board Exam

How to Score Good Marks in SSC Board Exams

Tips To Score More Than 90% Marks In 12th Board Exam

How to write English exams?

How to prepare for board exam when less time is left

How to memorise what you learn for board exam

No. 1 Simple Hack, you can try out, in preparing for Board Exam

How to Study for CBSE Class 10 Board Exams Subject Wise Tips?

JEE Main 2020 Registration Process – Exam Pattern & Important Dates

NEET UG 2020 Registration Process Exam Pattern & Important Dates

How can One Prepare for two Competitive Exams at the same time?

8 Proven Tips to Handle Anxiety before Exams!