1.

Ashok, Babu and Chetan are in partnership sharing profit in the proportion of 1/2, 1/3, 1/6 respectively. They dissolve the partnership of the December 31, 2017, when the balance sheet of the firm as under: Balance Sheet of Ashok, Babu and Chetan as on December 31, 2017 Liabilities Amount Rs Assets Amount Rs Sundry Creditors 20,000 Bank 7,500 Bills payable 25,500 Sundry Debtors 58,000 Babu’s loan 30,000 Stock 39,500 Capital’s: Machinery 48,000 Ashok 70,000 Investment 42,000 Babu 55,000 Freehold Property 50,500 Chetan 27,000 1,52,000 Current Accounts : Ashok 10,000 Babu 5,000 Chetan 3,000 18,000 2,45,500 2,45,500 The Machinery was taken over by Babu for Rs 45,000, Ashok took over the Investment for Rs 40,000 and Freehold property was taken over by Chetan at Rs 55,000. The remaining Assets realised as follows: Sundry Debtors Rs 56,500 and Stock Rs 36,500. Sundry Creditors were settled at discount of 7%. A Office computer, not shown in the books of Accounts realised Rs 9,000. Realisation expenses amounted to Rs 3,000.Prepare Realisation Account, Partners Capital Account, Bank Account.

Answer»











Ashok, Babu and Chetan are in partnership sharing profit in the proportion of 1/2, 1/3, 1/6 respectively. They dissolve the partnership of the December 31, 2017, when the balance sheet of the firm as under:

















































































































Balance Sheet of Ashok, Babu and Chetan as on December 31, 2017







Liabilities



Amount



Rs



Assets



Amount



Rs



Sundry Creditors



20,000



Bank



7,500



Bills payable



25,500



Sundry Debtors



58,000



Babu’s loan



30,000



Stock



39,500



Capital’s:





Machinery



48,000



Ashok



70,000





Investment



42,000



Babu



55,000





Freehold Property



50,500



Chetan



27,000



1,52,000







Current Accounts :









Ashok



10,000









Babu



5,000









Chetan



3,000



18,000











2,45,500





2,45,500
















The Machinery was taken over by Babu for Rs 45,000, Ashok took over the Investment for Rs 40,000 and Freehold property was taken over by Chetan at Rs 55,000. The remaining Assets realised as follows: Sundry Debtors Rs 56,500 and Stock Rs 36,500. Sundry Creditors were settled at discount of 7%. A Office computer, not shown in the books of Accounts realised Rs 9,000. Realisation expenses amounted to Rs 3,000.



Prepare Realisation Account, Partners Capital Account, Bank Account.








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