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
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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