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		62,000	Cash at Bank	16,000
Bills Payable		32,000	Sundry Debtors	55,000
Bank Loan		50,000	Stock	75,000
Reserve fund		16,000	Motor car	90,000
Capital:			Machinery	45,000
Tanu	1,10,000		Investment	70,000
Manu	90,000	2,00,000	Fixtures	9,000
		3,60,000		3,60,000

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

Particulars	Amount  (Rs.)	Particulars	Amount  (Rs.)
Sundry Debtors	55,000	Sundry Creditors	62,000
Stock	75,000	Bills Payable	32,000
Motor Car	90,000	Bank Loan	50,000
Machinery	45,000	Tanu’s Capital A/c:
Investment	70,000	Sundry Debtors	55,000
Fixtures	9,000	Motor Car	60,000
Manu’s Capital A/c  (Bills Payable)	30,400	Bank:	90,000
Bank  (Expenses)	2,200	Stock	10,000
Tanu’s Capital A/c (Bank Loan)	50000	Investment	76,000
		Fixtures	4,000
		Manu’s Capital (Machinery)	40,000
		Loss transferred to :
		Manu’s Capital A/c	23,500
		Manu’s Capital A/c	14,100
	4,26,600		4,26,600

Partners’ Capital Account

Particulars	Tanu	Manu	Particulars	Tanu	Manu
Realisation  (Assets taken)	1,15,000	40,000	Balance b/d	1,10,000	90,000
Realisation  (Loss)	23,500	14,100	Realisation  (Liabilities)	50,000	30,400
Bank	31,500	72,300	Reserve Fund	10,000	6,000
	1,70,000	1,26,400		1,70,000	1,26,400

 Bank Account

Particulars	Amount (Rs.)	Particulars	Amount (Rs.)
Balance b/d	16,000	Realisation  (Expenses)	2,200
Realisation  (Assets)	90,000	Tanu’s Capital A/c	31,500
		Manu’s Capital A/c	72,300
	1,06,000		1,06,000

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