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.)	Assets	Amount (Rs.)
Capitals:		Land	81,000
Shilpa	80,000	Stock	56,760
Meena	40,000	Debtors	18,600
Bank loan	20,000	Nanda’s Capital Account	23,000
Creditors	37,000	Cash	10,840
Provision for doubtful debt	1,200
General Reserve	12,000
	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

Particulars		Amount (Rs.)	Particulars		Amount (Rs.)
Land		81,000	Bank loan		20,000
Stock		56,760	Creditors		37,000
Debtors		18,600	Provision for doubtful debt		1,200
Bank			Shilpa’s Capital A/c(Stock)		35,000
Realisation Expenses	1,200		Bank
Creditors(37,000-6,000)	31,000	32,200	Debtors	12,300
Realisation Profit transferred to			stock	14,000
shilpa	10,470		Land	1,10,000	1,36,300
Meena	6,980
Nanda	3,490	20,940
		2,29,500			2,29,500

Partner’s Capital Account

Particulars	Shilpa	Meena	Nanda	Particulars	Shilpa	Meena	Nanda
Balance b/d			23,000	Balance b/d	80,000	40,000
Realisation(stock)	35,000			General Reserve	6,000	4,000	2,000
				Realisation	20,000
Cash(Balancing Figure)	81,470	50,980		(Bank Loan)
				Realisation (Profit)	10,470	6,980	3,490
				Cash(Balancing Figure)			17,510
	1,16,470	50,980	23,000		1,16,470	50,980	23,000

Cash A/c

Particulars	Amount (Rs.)	Particulars	Amount (Rs.)
Balance b/d	10,840	Realisation (liability)	32,200
Realisation (Asset)	1,36,300	Shilpa’s Capital A/c	81,470
Nanda’s Capital A/c	17,510	Meena’s Capital A/c	50,980
	1,64,650		1,64,650

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