The following is the Balance sheet of Tanu and Manu, who shares profit and losses in the ratio of 5:3, On December 31,2017-solution

20. The following is the Balance sheet of Tanu and Manu, who shares profit and losses in the ratio of 5:3, On December 31,2017:

Balance Sheet of Tanu and Manu 

as on December 31, 2017

Liabilities
 Amount
(Rs.)
Assets
 Amount
(Rs.)
Sundry Creditors 62,000Cash at Bank16,000
Bills Payable 32,000Sundry Debtors55,000
Bank Loan 50,000Stock75,000
Reserve fund 16,000Motor car90,000
Capital:  Machinery45,000
Tanu1,10,000 Investment70,000
Manu90,0002,00,000Fixtures9,000
3,60,0003,60,000

On the above date the firm is dissolved and the following agreement was made: Tanu agree to pay the bank loan and took away the sundry debtors. Sundry creditors accepts stock and paid Rs 10,000 to the firm. Machinery is taken over by Manu for Rs 40,000 and agreed to pay of bills payable at a discount of 5%.. Motor car was taken over by Tanu for Rs 60,000. Investment realised Rs 76,000 and fixtures Rs 4,000. The expenses of dissolution amounted to Rs 2,200.
Prepare Realisation Account, Bank Account and Partners Capital Accounts.

SOLUTION

 Books of Tanu and Manu
Realisation Account

ParticularsAmount
 (
Rs.)
ParticularsAmount
 (
Rs.)
Sundry Debtors55,000Sundry Creditors62,000
Stock75,000Bills Payable32,000
Motor Car90,000Bank Loan50,000
Machinery45,000Tanu’s Capital A/c:
Investment70,000Sundry Debtors55,000
Fixtures9,000Motor Car60,000
Manu’s Capital A/c  (Bills Payable)30,400Bank:90,000
Bank  (Expenses)2,200Stock10,000
Tanu’s Capital A/c (Bank Loan)50000Investment76,000
  Fixtures4,000
  Manu’s Capital (Machinery)40,000
  Loss transferred to :
  Manu’s Capital A/c23,500
  Manu’s Capital A/c14,100
 4,26,600 4,26,600

Partners’ Capital Account

ParticularsTanuManuParticularsTanuManu
Realisation 
(Assets taken)
1,15,00040,000Balance b/d1,10,00090,000
Realisation  (Loss)23,50014,100Realisation  (Liabilities)50,00030,400
Bank31,50072,300Reserve Fund10,0006,000
1,70,0001,26,400 1,70,0001,26,400

 Bank Account

Particulars
Amount
(Rs.)
Particulars
Amount
(Rs.)
Balance b/d16,000Realisation 
(Expenses)
2,200
Realisation 
(Assets)
90,000Tanu’s Capital A/c31,500
  Manu’s Capital A/c72,300
 1,06,0001,06,000
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