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.
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 |