1.

Rita, Geeta and Ashish were partners in a firm sharing profits/losses in the ratio of 3:2:1. On March 31, 2017 their balance sheet was as follows: Liabilities Amount Rs Assets Amount Rs Capitals: Cash 22,500 Rita 80,000 Debtors 52,300 Geeta 50,000 Stock 36,000 Ashish 30,000 1,60,000 Investments 69,000 Creditors 65,000 Plant 91,200 Bills payable 26,000 General reserve 20,000 2,71,000 2,71,000 On the date of above mentioned date the firm was dissolved:1. Rita was appointed to realise the assets. Rita was to receive 5% commission on the rate of assets (except cash) and was to bear all expenses of Realisation,2. Assets were realised as follows: Rs Debtors 30,000 Stock 26,000 Plant 42,750 3. Investments were realised at 85% of the book value,4. Expenses of Realisation amounted to Rs 4,100,5. Firm had to pay Rs 7,200 for outstanding salary not provided for earlier,6. Contingent liability in respect of bills discounted with the bank was also materialised and paid off Rs 9,800,Prepare Realisation Account, Capital Accounts of Partners’ and Cash Account.

Answer»











Rita, Geeta and Ashish were partners in a firm sharing profits/losses in the ratio of 3:2:1. On March 31, 2017 their balance sheet was as follows:














































































Liabilities



Amount



Rs



Assets



Amount



Rs



Capitals:







Cash



22,500



Rita



80,000





Debtors



52,300



Geeta



50,000





Stock



36,000



Ashish



30,000



1,60,000



Investments



69,000



Creditors





65,000



Plant



91,200



Bills payable





26,000







General reserve





20,000











2,71,000





2,71,000
















On the date of above mentioned date the firm was dissolved:



1. Rita was appointed to realise the assets. Rita was to receive 5% commission on the rate of assets (except cash) and was to bear all expenses of Realisation,



2. Assets were realised as follows:

























Rs



Debtors



30,000



Stock



26,000



Plant



42,750




3. Investments were realised at 85% of the book value,



4. Expenses of Realisation amounted to Rs 4,100,



5. Firm had to pay Rs 7,200 for outstanding salary not provided for earlier,



6. Contingent liability in respect of bills discounted with the bank was also materialised and paid off Rs 9,800,



Prepare Realisation Account, Capital Accounts of Partners’ and Cash Account.








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