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Shilpa, Meena And Nanda Decided to Dissolve Their Partnership On March 31,2017. Their Profit Sharing Ratio Was 3:2:1 And Their Balance Sheet Was As Under-Solution

Q.12. Shilpa, Meena and Nanda decided to dissolve their partnership on March 31,2017. Their profit sharing ratio was 3:2:1 and their Balance Sheet was as under:

Balance Sheet of Shilpa, Meena and Nanda

as on March 31, 2017           

Liabilities
Amount
(Rs.)
AssetsAmount (Rs.)
Capitals: Land81,000
   Shilpa80,000Stock56,760
   Meena40,000Debtors18,600
Bank loan20,000Nanda’s Capital Account23,000
Creditors37,000Cash10,840
Provision for doubtful debt1,200  
General Reserve12,000  
 190,200 190,200

The stock of value of Rs 41,660 are taken over by Shilpa for Rs 35,000 and she agreed to discharge bank loan. The remaining stock was sold at Rs 14,000 and debtors amounting to Rs 10,000 realised Rs 8,000. land is sold for Rs 1,10,000. The remaining debtors realised 50% at their book value. Cost of Realisation amounted to Rs 1,200. There was a typewriter not recorded in the books worth Rs 6,000 which were taken over by one of the Creditors at this value. Prepare Realisation Account.

SOLUTION

Books of Shilpa, Meena and Nanda

Realisation A/c

ParticularsAmount
(Rs.)
ParticularsAmount
(Rs.)
Land81,000Bank loan20,000
Stock56,760Creditors37,000
Debtors18,600Provision for doubtful debt1,200
BankShilpa’s Capital A/c(Stock)35,000
Realisation Expenses1,200Bank
Creditors(37,000-6,000)31,00032,200  Debtors12,300
Realisation Profit transferred to  stock14,000
  shilpa10,470  Land1,10,0001,36,300
  Meena6,980
  Nanda3,49020,940
2,29,5002,29,500

Partner’s Capital Account

ParticularsShilpaMeenaNandaParticularsShilpaMeenaNanda
Balance b/d23,000Balance b/d80,00040,000
Realisation(stock) 35,000  General Reserve6,0004,0002,000
   Realisation20,000  
Cash(Balancing Figure)81,47050,980 (Bank Loan)   
    Realisation (Profit)10,4706,9803,490
    Cash(Balancing Figure)  17,510
 1,16,47050,98023,000 1,16,47050,98023,000

Cash A/c

Particulars
Amount
(Rs.)
Particulars
Amount
(Rs.)
Balance b/d10,840Realisation (liability)32,200
Realisation (Asset)1,36,300Shilpa’s Capital A/c81,470
Nanda’s Capital A/c17,510Meena’s Capital A/c50,980
1,64,6501,64,650

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