Sanjay, Tarun and Vineet shared profit in the ratio of 3:2:1. On December 31,2017 their balance sheet was as follows solve the question ? Solution

17. Sanjay, Tarun and Vineet shared profit in the ratio of 3:2:1. On December 31,2017 their balance sheet was as follows:

Balance Sheet of Sanjay, Tarun and Vineet 

as on December 31, 2017

Liabilities	Amount (Rs.)	Assets	Amount (Rs.)
Capitals:		Plant	90,000
Sanjay           1,00,000		Debtors	60,000
Tarun              1,00,000		Furniture	32,000
Vineet                70,000	270,000	Stock	60,000
Creditors	80,000	Investments	70,000
Bills payable	30,000	Bills receivable	36,000
		Cash in hand	32,000
	3,80,000		3,80,000

On this date the firm was dissolved. Sanjay was appointed to realise the assets. Sanjay was to receive 6% commission on the sale of assets (except cash) and was to bear all expenses of Realisation.
Sanjay realised the assets as follows: Plant Rs 72,000, Debtors Rs 54,000, Furniture Rs 18,000, Stock 90% of the book value, Investments Rs 76,000 and Bills receivable Rs 31,000. Expenses of Realisation amounted to Rs 4,500.
Prepare Realisation Account, Capital Accounts and Cash Account

SOLUTION

Books of Sanjay, Tarun and Vineet
Realisation Account

Particulars		Amount (Rs.)	Particulars		Amount (Rs.)
Plant		90,000	Creditors		80,000
Debtors		60,000	Bills Payable		30,000
Furniture		32,000	Cash:
Stock		60,000	Plant	72,000
Investment		70,000	Debtors	54,000
Bills Receivable		36,000	Furniture	18,000
Cash :			Stock	54,000
Creditors	80,000		Investments	76,000
Bills Payable	30,000	110,000	Bills Receivable	31,000
Sanjay’s Capital A/c (6% commission)		18,300	Loss transferred to :
			Sanjay’s Capital	30,650
			Tarun’s Capital A/c	20,433
			Vineet’s Capital A/c	10,217	61,300
		4,76,300			4,76,300

Partners’ Capital Account

Particulars	Sanjay	Tarun	Vineet	Particulars	Sanjay	Tarun	Vineet
Realisation  (Loss)	30,650	20,433	10,217	Balance b/d	100,000	100,000	70,000
Cash	87,650	79,567	59,783	Realisation  (commission)	18,300
	1,18,300	1,00,000	70,000		1,18,300	1,00,000	70,000

Cash Account

Particulars	Amount (Rs.)	Particulars	Amount (Rs.)
Balance b/d	32,000	Realisation	110,000
Realisation	305,000	Sanjay’s Capital A/c	87,650
		Tarun’s Capital A/c	79,567
		Vineet’s Capital A/c	59,783
	3,37,000		3,37,000

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