16. Ashu and Harish are partners sharing profit and losses as 3:2. They decided to dissolve the firm on December 31, 2017. Their balance sheet on the above date was:
Balance Sheet of Ashu and Harish
as on December 31, 2017
| Liabilities | Amount (Rs.) | Amount (Rs.) | Assets | Amount (Rs.) |
| Capitals: | Building | 80,000 | ||
| Ashu | 1,08,000 | Machinary | 70,000 | |
| Harish | 54,000 | 1,62,000 | Furniture | 14,000 |
| Creditors | 88,000 | Stock | 20,000 | |
| Bank overdraft | 50,000 | Investments | 60,000 | |
| Debtors | 48,000 | |||
| Cash in hand | 8,000 | |||
| 300,000 | 300,000 |
Ashu is to take over the building at Rs 95,000 and Machinery and Furniture is take over by Harish at value of Rs 80,000. Ashu agreed to pay Creditor and Harish agreed to meet Bank overdraft. Stock and Investments are taken by both partner in profit sharing ratio. Debtors realised for Rs 46,000, expenses of Realisation amounted to Rs 3,000. Prepare necessary ledger Account.
Books of Ashu and Harish
Realisation A/c
| Particulars | Amount (Rs) | Particulars | Amount (Rs) | ||
| Building | 80,000 | Creditors | 88,000 | ||
| Machinery | 70,000 | Bank overdraft | 50,000 | ||
| Furniture | 14,000 | Bank: | |||
| stock | 20,000 | Ashu’s capital A/c(Building) | 95,000 | ||
| Investment | 60,000 | Ashu’s capital A/c(Stock) | 12,000 | ||
| Debtors | 48,000 | Ashu’s capital A/c(Investment) | 36,000 | 1,43,000 | |
| Ashu’s capital A/c(Creditors) | 88,000 | Harish’s Capital A/c(Machinery and Furniture) | 80,000 | ||
| Harish’s Capital A/c(Bank overdraft) | 50,000 | Harish’s Capital A/c(Stock) | 8,000 | ||
| Cash (Realisation expense) | 3,000 | Harish’s Capital A/c(Investment) | 24,000 | 1,12,000 | |
| Profit transfered to: | Cash (Debtors) | 46,000 | |||
| Ashu’s capital A/c | 3,600 | ||||
| Harish’s Capital A/c | 2,400 | 6,000 | |||
| 4,39,000 | 4,39,000 | ||||
Partner’s Capital A/c
| Particulars | Ansu | Harish | Particulars | Ansu | Harish |
| Realisation (Asset) | 1,43,000 | 1,12,000 | Balance b/d | 1,08,000 | 54,000 |
| Cash | 56,600 | Realisation A/c (Profit) | 3,600 | 2,400 | |
| Realisation A/c (Liabilities) | 88,000 | 50,000 | |||
| Cash | 5,600 | ||||
| 1,99,600 | 1,12,000 | 1,99,600 | 1,12,000 | ||
Cash A/c
| Particulars | Amount (Rs) | Particulars | Amount (Rs) |
| By balance b/d | 8,000 | Anus’s Capital A/c | 56,600 |
| Realisation Debtors | 46,000 | Realisation (Expenses) | 3,000 |
| Harish’s Capital A/c | 5,600 | ||
| 59,600 | 59,600 | ||