Rita, Geeta and Ashish Were Partners In A Firm Sharing Profits And Losses In the Ratio Of 3:2:1. On March 31, 2017 Their Balance Sheet Was As Follows-Solution
Q.14. Rita, Geeta and Ashish were partners in a firm sharing profits/losses in the ratio of 3:2:1. On March 31, 2017 their balance sheet was as follows:
| Liabilities | Amount (Rs.) | Assets | Amount (Rs.) |
| Capitals: | Cash | 22,500 | |
| Rita 80,000 | Debtors | 52,300 | |
| Geeta 50,000 | Stock | 36,000 | |
| Ashish 30,000 | 1,60,000 | Investments | 69,000 |
| Creditors | 65,000 | Plant | 91,200 |
| Bills payable | 26,000 | ||
| General reserve | 20,000 | ||
| 2,71,000 | 2,71,000 |
On the date of above mentioned date the firm was dissolved:
1. Rita was appointed to realise the assets. Rita was to receive 5% commission on the rate of assets (except cash) and was to bear all expenses of Realisation,
2. Assets were realised as follows:
| Rs | |
| Debtors | 30,000 |
| Stock | 26,000 |
| Plant | 42,750 |
3. Investments were realised at 85% of the book value,
4. Expenses of Realisation amounted to Rs 4,100,
5. Firm had to pay Rs 7,200 for outstanding salary not provided for earlier,
6. Contingent liability in respect of bills discounted with the bank was also materialised and paid off Rs 9,800, Prepare Realisation Account, Capital Accounts of Partners’ and Cash Account.
In the books of Rita, Geeta and Ashish
Realisation Account
| Particulars | Amount (Rs.) | Particulars | Amount (Rs.) | ||
| Debtors | 52,300 | Creditors | 65,000 | ||
| Stock | 36,000 | Bills Payable | 26,000 | ||
| Investment | 69,000 | Cash: | |||
| Plant | 91,000 | Debtors | 30,000 | ||
| Cash: | Stock | 26,000 | |||
| Outstanding Salaries | 7,200 | Plant | 42,750 | ||
| Discounted Bill | 9,800 | Investment | 58,650 | 1,57,400 | |
| Creditors | 65,000 | ||||
| Bills Payable | 26,000 | 1,08,000 | Loss transferred to : | ||
| Rita’s Capital A/c (Commission) | 7,870 | Rita’s Capital A/c | 57,985 | ||
| Geeta’s Capital A/c | 38,657 | ||||
| Ashish’s Capital A/c | 19,328 | 1,15,970 | |||
| 3,64,370 | 3,64,370 | ||||
Partners’ Capital Account
| Particulars | Rita | Geeta | Ashish | Particulars | Rita | Geeta | Ashish |
| Realisation (Loss) | 57,985 | 38,657 | 19,328 | Balance b/d | 80,000 | 50,000 | 30,000 |
| Bank | 39,885 | 18,010 | 14,005 | General Reserve | 10,000 | 6,667 | 3,333 |
| Realisation | 7,870 | ||||||
| 97,870 | 56,667 | 33,333 | 97,870 | 56,667 | 33,333 | ||
Cash Account
| Particulars | Amount (Rs.) | Particulars | Amount (Rs.) |
| Balance b/d | 22,500 | Realisation A/c | 1,08,000 |
| Realisation | 1,57,400 | Rita’s Capital | 39,885 |
| Geeta’s Capital A/c | 18,010 | ||
| Ashish’s Capital A/c | 14,005 | ||
| 1,79,900 | 1,79,900 | ||
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