Anup and Sumit Are Equal Partners In A Firm. They Decided to Dissolve the Partnership On December 31, 2017 Solve The Question ? Solution

15. Anup and Sumit are equal partners in a firm. They decided to dissolve the partnership on December 31, 2017. When the balance sheet is as under:

    Balance Sheet of Anup and Sumit 

as on December 31, 2017

Liabilities	Amount (Rs.)	Assets	Amount (Rs.)
Sundry Creditors	27,000	Cash at bank	11,000
Reserve fund	10,000	Sundry Debtors	12,000
Loan	40,000	Plants	47,000
Capital :	120,000	Stock	42,000
Anup 60,000		Lease hold land	60,000
Sumit 60,000	1,20,000	Furniture	25,000
	197,000		197,000

The Assets were realised as follows:

	Rs.
Lease hold land	72,000
Furniture	22,500
Stock	40,500
Plant	48,000
Sundry Debtors	10,500

The Creditors were paid Rs 25,500 in full settlement. Expenses of Realisation amount to Rs 2,500.

Prepare Realisation Account, Bank Account, Partners Capital Accounts to close the books of the firm.

SOLUTION

Books of Anup and Sumit
Realisation Account

Particulars		Amount (Rs.)	Particulars		Amount (Rs.)
Sundry Debtors		12,000	Sundry Creditors		27,000
Plants		47,000	Loan		40,000
Stock		42,000	Bank:
Leasehold land		60,000	Furniture	22,500
Furniture		25,000	Stock	40,500
Bank:			Leasehold Land	72,000
Creditors	25,500		Plant	48,000
Loan	40,000		Sundry Debtors	10,500	1,93,500
Expenses	2,500	68,000
Profit transferred to :
Anup’s Capital A/c	3,250
Sumit’s Capital A/c	3,250	6,500
		2,60,500			2,60,500

 Partners’ Capital Account

Particulars	Anup	Sumit	Particulars	Anup	Sumit
Bank	68,250	68,250	Balance b/d	60,000	60,000
			Reserve Fund	5,000	5,000
			Realisation	3,250	3,250
	68,250	68,250		68,250	68,250

 Bank Account

Particulars	Amount	Particulars	Amount
Balance b/d	11,000	Realisation (Expenses and Liabilities)	68,000
Realisation (Assets)	193,500	Anup’s Capital A/c	68,250
		Sumit’s Capital A/c	68,250
	204,500		204,500

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