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 31st March,2018 when the Balance Sheet of the firm as under: Liabilities ₹ Assets ₹ Sundry Creditors 20,000 Bank 7,500 Bills Payable 25,500 Sundry Debtors 58,000 Babu's Loan 30,000 Stock 39,500 Capital A/cs: Machinery 48,000 Ashok 70,000 Investments 42,000 Babu 55,000 Freehold Property 50,500 Chetan 27,000 1,52,000 Capital A/cs: Ashok 10,000 Babu 5,000 Chetan 3,000 18,000 2,45,000 2,45,500 The Machinery was taken over by Babu for ₹ 45,000, Ashok took over the Investments for ₹ 40,000 and Freehold property took over by Chetan at ₹ 55,000. The remaining Assets realised as follows:Sundry Debtors ₹ 56,500 and Stock ₹ 36,500 . Sundry Creditors were settled at discount of 7% . A office computer, not shown in the books of accounts realised ₹ 9,000. Realisation expenses amounted to ₹ 3,000.Prepare Realisation Account , Partners' Capital Accounts and 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 31st March,2018 when the Balance Sheet of the firm as under:


































































































































Liabilities





Assets





Sundry Creditors


20,000

Bank


7,500
Bills Payable 25,500 Sundry Debtors 58,000
Babu's Loan 30,000 Stock 39,500
Capital A/cs: Machinery 48,000

Ashok

70,000 Investments


42,000
Babu 55,000 Freehold Property 50,500
Chetan 27,000 1,52,000
Capital A/cs:
Ashok 10,000
Babu 5,000
Chetan 3,000 18,000


2,45,000


2,45,500









The Machinery was taken over by Babu for ₹ 45,000, Ashok took over the Investments for ₹ 40,000 and Freehold property took over by Chetan at ₹ 55,000. The remaining Assets realised as follows:

Sundry Debtors ₹ 56,500 and Stock ₹ 36,500 . Sundry Creditors were settled at discount of 7% . A office computer, not shown in the books of accounts realised ₹ 9,000. Realisation expenses amounted to ₹ 3,000.

Prepare Realisation Account , Partners' Capital Accounts and Bank Account.


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