NCERT Solutions for Class 12 Commerce Accountancy Chapter 4 (2024)

Basis of Difference

Dissolution of Partnership

Dissolution of Partnership firm

Meaning

It means change in the partnership deed (or the agreement) among the partners.

It means that the business is wound up and the firm is dissolved.

Discontinuation

Business is not discontinued.

Business is discontinued, as the firm is dissolved.

Closure of Books of Accounts

Books of accounts are not closed, as there is only change in the existing agreement between the partners.

Books of accounts are closed, as the business is discontinued.

Assets and Liabilities

In this case, the assets and liabilities are revalued.

In this case, all the assets are sold off in order to pay the liabilities of the business.

Role of Court

There is no intervention by the court.

Dissolution of a partnership firm may be done with the consent of the court.

Nature

It is voluntary in nature.

It may be voluntary (as per the discretion of the partners) or compulsory (as per the order of the court).

Effect

It may or may not involve dissolution of the firm.

It necessarily involves dissolution of both the partnership as well as of the partnership firm.

Cash A/c

Dr.

To Realisation A/c

(Unrecorded assets sold for cash)

Partner's Capital A/c

Dr.

To Realisation A/c

(Unrecorded asset taken over by the partner)

Realisation A/c

Dr.

To Cash A/c

(Unrecorded liability paid in cash)

Realisation A/c

Dr.

To Partner's Capital A/c

(Unrecorded liability taken over by the partner)

Partner’s Capital A/c

Dr.

To Partner's Loan A/c

(Partner's loan transferred to Partner's Capital Account)

Partner’s Loan A/c

Dr.

To Cash/Bank A/c

(Partner’s loan paid in cash)

Basis of Difference

Firm’s Debts

Partner’s Private Debts

Meaning

It refers to those debts that are borrowed against the name of the firm.

It refers to those debts that are borrowed personally by the partner.

Liability

All the partners of the firm are jointly and separately liable for the firm's debt.

The concerned partner is personally liable for his private debts.

Settlement of debts by private assets

If the firm's debt exceeds the firm’s assets, then private assets of the partners may be utilised to pay back the firm's debt, if only the partner's private assets exceeds his/her own private debts.

Private debts are settled against the partner's private assets. Subsequently, if any surplus exists then this may be utilised to settle the firm's debts.

Settlement of debts by firm's assets

Firm's debts are settled against the firm’s assets. Subsequently, if any surplus exists, then this is distributed among the partners.

After paying off firm's debts, the surplus of firm's assets, if any is distributed among the partners. The personal share of the partner in this surplus can be utilised to settle his/her own private debts.

Basis of Difference

Realisation Account

Revaluation Account

Meaning

It records the sale of various assets and payment of various liabilities.

It records the effect of revaluation of assets and liabilities on the eve of admission, retirement, death and change in the profit sharing ratio.

Time

It is prepared at the time of dissolution of firm.

It is prepared when admission/retirement/death or change in profit sharing ratio takes place.

Objective

To find profit or loss on realisation of assets and payment of liabilities.

To find out profit or loss on revaluation of assets and liabilities.

Amount

Assets and liabilities are shown at the book value.

Increase or decrease in the value of assets and liabilities are shown in this account.

Records

All assets and liabilities are recorded here.

Only those assets and liabilities are recorded here whose values have changed over a period of time.

Effect

All accounts of assets and liabilities are closed.

No account is closed on revaluation of assets and liabilities.

Realisation A/c

Dr.

To Sundry Assets A/c (Individually)

(All Assets transferred to realisation account, except

Cash/Bank, P and L debit balance, Loan to a Partner)

Sundry Liabilities A/c (Individually)

Dr.

To Realisation A/c

(All Liabilities transferred to Realisation account except

Partner's Capitals, P and L credit balance, Loan from Partner)

Bank A/c (Amount received)

Dr.

To Realisation A/c

(Assets sold for cash)

Realisation A/c

Dr.

To Bank A/c

(Liabilities paid in cash)

Realisation A/c

Dr.

To Bank A/c

(Expenses paid)

Realisation A/c

Dr.

To Partner's Capital A/c

(Profit on realisation transferred to partner 's capital account)

Partner's Capital A/c

Dr.

To Realisation A/c

(Loss transferred to partner's capital account)

Format of Realisation Account

Dr.ÂÂÂÂÂÂÂÂÂÂÂÂÂÂÂÂÂÂÂÂÂÂÂÂÂÂÂÂÂÂÂÂÂÂÂÂÂÂÂÂÂÂÂÂÂÂÂÂÂÂÂÂÂÂÂÂÂÂÂÂÂÂÂÂÂÂÂÂÂÂÂÂÂÂÂÂÂÂÂÂÂÂÂÂÂÂÂÂÂÂÂÂÂÂÂÂÂÂÂÂÂÂÂÂÂÂÂÂÂÂÂÂÂÂÂÂÂÂÂÂÂÂÂÂÂÂÂÂÂÂÂÂÂÂÂÂÂÂ

Cr.

Particulars

Amount

Rs

Particulars

Amount

Rs

Various Assets

(Excluding Cash/Bank, fictitious assets, Debit balance of P and L A/c, partner Capital A/c, Current A/c, Loan to Partner)

Cash/Bank

(Payment for realisation expenses)

Cash/Bank

(Payment to outside and unrecorded liabilities)

Partner's Capital A/c

(If any liability taken on expenses paid by him or remuneration payable to him)

Partner Capital A/c

(Profit on realisation distributed in the profit sharing ratio among all the partners)

–

–

–

–

Various Liabilities

(Excluding Partner Capital account, reserves, P and L A/c, Current A/c, Loan to Partner)

Provision on assets

(like, Provision for doubtful debts; Provision for depreciation)

Cash/Bank

(Amount received from realisation of assets and unrecorded assets)

Partner 's Capital A/c

(If any asset taken over by any partner)

Partner Capital A/c

(Loss on realisation borne by all the partners in their profit sharing ratio)

–

–

–

–

–

–

Format of Realisation Account

Dr.

Cr.

Particulars

Amount

Rs

Particulars

Amount

Rs

Various Assets

(Excluding Cash/Bank, fictitious assets, Debit balance of P and L A/c, partner Capital A/c, Current A/c, Loan to Partner)

Cash/Bank

(Payment for realisation expenses)

Cash/Bank

(Payment to outside and unrecorded liabilities)

Partner's Capital A/c

(If any liability taken on expenses paid by him or remuneration payable to him)

Partner Capital A/c

(Profit on realisation distributed in the profit sharing ratio among all the partners)

–

–

–

–

Various Liabilities

(Excluding Partner Capital account, reserves, P and L A/c, Current A/c, Loan to Partner)

Provision on assets

(like, Provision for doubtful debts; Provision for depreciation)

Cash/Bank

(Amount received from realisation of assets and unrecorded assets)

Partner 's Capital A/c

(If any asset taken over by any partner)

Partner Capital A/c

(Loss on realisation borne by all the partners in their profit sharing ratio)

–

–

–

–

–

–

Journal

Particulars

L.F.

Amount

Rs

Amount

Rs

(a)

Realisation A/c

Dr.

2,500

To Bank A/c

2,500

(Realisation expenses paid)

(b)

Realisation A/c

Dr.

3,000

To Ashok’s Capital A/c

3,000

(Realisation expenses paid by Ashok)

(c)

No entry, as all Realisation expenses are borne personally by Tarun

(d)

Realisation A/c

Dr.

4,000

To Amit’s Capital A/c

4,000

(Realisation expenses paid to Amit)

Journal

Particulars

L.F.

Amount

Rs

Amount

Rs

(a)

Realisation A/c

Dr.

40,000

To Cash A/c

40,000

(Creditors worth Rs 85,000 accepted 40,000 as cash and investment

worth Rs 43,000 in their full settlement)

(b)

No Entry

(Creditors Rs 16,000 accepted Machinery Rs 18,000 in the full

settlement. No entry is required since both asset and liability are

already transferred to the Realisation Account)

(c)

Cash A/c

Dr.

30,000

To Realisation A/c

30,000

(Creditors worth Rs 90,000 accepted buildings worth Rs 1,20,000 and

returned Rs 30,000 as cash after settlement of claim to the firm)

Journal

Particulars

L.F.

Amount

Rs

Amount

Rs

Nitin’s Capital A/c

Dr.

3,000

To Realisation A/c

3,000

(Unrecorded computer taken over by Nitin)

Journal

Particulars

L.F.

Amount

Rs

Amount

Rs

(a)

Realisation A/c

Dr.

3,200

To Bank A/c

3,200

(Unrecorded liabilities paid)

(b)

(Rohit’s Capital A/c

Dr.

7,500

To Realisation A/c

7,500

(Stock is taken over by Rohit)

(c)

Realisation A/c

Dr.

18,000

To Ashish’s Capital A/c

7,500

To Tarun’s Capital A/c

10,500

(Profit on Realisation is transferred to Partners’ Capital Account)

(d)

Bank A/c

Dr.

5,500

To Realisation A/c

5,500

(Unrecorded asset sold)

Journal

Particulars

L.F.

Amount

Rs

Amount

Rs

1)

(a)

For Transfer of Assets

Realisation A/c

Dr.

-

To Assets A/c (Individually)

-

(Assets transferred to Realisation Account)

(b)

For Transfer of Liabilities

Liabilities A/c (Individually)

Dr.

-

To Realisation A/c

-

(Liabilities transferred to Realisation Account)

(c)

For sale of Asset

Cash/Bank A/c

Dr.

-

To Realisation A/c

-

(Assets sold)

(d)

For liabilitiy paid

Realisation A/c

Dr.

-

To Cash/Bank A/c

-

(Liabilities paid)

2)

Aziz’s Capital A/c

Dr.

64,000

To Realisation A/c

64,000

(Aziz, a partner took over 50% of stock at 20% discount, the value

of the total stock was Rs 1,60,000)

[1,60,000 × (50/100) × (80/100) = Rs 64,000]

3)

Bank A/c

Dr.

1,04,000

To Realisation A/c

1,04,000

(Stock worth Rs 80,000 sold at a profit of 30% on cost)

[80,000 × (130/100 = Rs 1,04,000)]

4)

Bank A/c

Dr.

2,94,000

To Realisation A/c

2,94,000

(Land and Building sold for Rs 3,00,000 and 2% commission

paid to the broker)

5)

No entry

(Plant and Machinery Rs 60,000 handed over to the creditors at a

discount of 10%. No entry is required as both the asset and liability

are already transferred to the Realisation Account)

6)

Bank A/c

Dr.

2,000

To Realisation A/c

2,000

(Investments worth Rs 4,000 were realised at 50%)

Books of Rashim and Bindiya

Journal

Particulars

L.F.

Amount

Rs

Amount

Rs

1)

Realisation A/c

Dr.

1,00,000

To Bank A/c

1,00,000

(Realisation expenses paid)

2)

Realisation A/c

Dr.

30,000

To Rashim’s Capital A/c

30,000

(Realisation expenses borne by Rashim)

3)

Realisation A/c

Dr.

70,000

To Rashim’s Capital A/c

70,000

(Realisation expenses borne by Rashim and remuneration to him

for dissolution Rs 70,000)

Journal

Particulars

L.F.

Amount

Rs

Amount

Rs

Realisation A/c

Dr.

1,00,000

To Sundry Assets A/c

1,00,000

(Assets other than cash and bank transferred to Realisation Account)

Atul’s Capital A/c

Dr.

40,000

To Realisation A/c

40,000

(Atul took over 50% of assets worth Rs 1,00,000 at 20% discount)

[1,00,000 × (50/100) × (80/100)]

Bank A/c

Dr.

26,000

To Realisation A/c

26,000

(Assets worth Rs 20,000, i.e. 40% of assets of Rs 50,000 are sold

at a profit of 30%) [50,000 × (40/100) × (130/100)]

No entry is made for obsolescence of the assets and the assets given

to the creditors in the full settlement as these are already transferred to

the Realisation Account and adjusted)

ÂBooks of Paras and Priya

Journal

Particulars

L.F.

Amount

Rs

Amount

Rs

1)

Bank A/c

Dr.

3,000

To Realisation A/c

3,000

(Unrecorded furniture sold)

2)

Bank A/c

Dr.

600

To Realisation A/c

600

(Bad Debt recovered which was previously written off as bad)

3)

Paras’s Capital A/c

Dr.

30,000

To Realisation A/c

30,000

(Unrecorded goodwill taken over by Paras)

4)

Priya’s Capital A/c

Dr.

300

To Realisation A/c

300

(Unrecorded Typewriter estimated Rs 400 taken over by Priya at

25% less price)

5)

Paras’s Capital A/c

Dr.

300

Priya’s Capital A/c

Dr.

300

To Realisation A/c

600

(100 shares of Rs 10 each which were not recorded in the booksÂ

taken @ Rs 6 each by Paras and Priya and divided between them in

their profit sharing ratio)

Journal

Particulars

L.F.

Amount

Rs

Amount

Rs

1

Arti’s Capital A/c

Dr.

68,000

To Realisation A/c

68,000

(Arti took over stock worth Rs 80,000 at Rs 68,000)

2.

Karim’s Capital A/c

Dr.

40,000

To Realisation A/c

40,000

(Karim took over an unrecorded bike of Rs 40,000)

3.

Realisation A/c

Dr.

40,000

To Bank A/c

40,000

(Compensation paid to the employees )

4.

Realisation A/c

Dr.

30,600

To Bank A/c

30,600

(Creditors amounting Rs 36,000 were settled at a discount of 15%)

[36,000 × (85/100)]

5.

Arti’s Capital A/c

Dr.

18,000

Karim’s Capital A/c

Dr.

24,000

To Realisation A/c

42,000

(Loss on Realisation transferred to Partners’ Capital Account)

Balance Sheet of Rose and Lily as on March 31, 2017

Liabilities

Amount

Rs

Assets

Amount

Rs

Creditors

40,000

Cash

16,000

Lily’s loan

32,000

Debtors

80,000

Profit and Loss

50,000

Less: Provision for doubtful Debts

3,600

76,400

Capitals:

Lily

1,60,000

Inventory

1,09,600

Rose

2,40,000

Bills Receivable

40,000

Buildings

2,80,000

5,22,000

5,22,000

Books of Rose and Lily

Realisation Account

Dr.

Cr.

Particulars

Amount

Rs

Particulars

Amount

Rs

Debtors

80,000

Provision for Doubtful Debts

3,600

Inventory

1,09,600

Creditors

40,000

Bills Receivables

40,000

Cash:

Buildings

2,80,000

Motor cycle

10,000

Cash:

Other Assets

4,84,000

4,94,000

Outstanding Electricity Bill

5,000

Rose’s Capital (Bills Receivable)

33,000

Creditors

38,000

Expenses

2,400

45,400

Profit transferred to:

Rose' Capital

6,240

Lily's Capital

9,360

15,600

5,70,600

5,70,600

Partners’ Capital Accounts

Dr.

Cr.

Particulars

Rose

Lily

Particulars

Rose

Lily

Realisation (Bills Receivable)

33,000

Balance b/d

2,40,000

1,60,000

Cash A/c

2,33,240

1,99,360

Profit and Loss

20,000

30,000

Realisation (Profit)

6,240

9,360

2,66,240

1,99,360

2,66,240

1,99,360

Lily's Loan Account

Dr.

Cr.

Particulars

Amount

Rs

Particulars

Amount

Rs

Cash

32,000

Balance b/d

32,000

32,000

32,000

Cash Account

Dr.

Cr.

Particulars

Amount

Rs

Particulars

Amount

Rs

Balance b/d

16,000

Realisation:

Realisation:

Creditors

38,000

Motor Cycle

10,000

Outstanding Electricity Bill

5,000

Other Assets

4,84,000

4,94,000

Expenses

2,400

45,400

Lily's Loan

32,000

Rose’s Capital A/c

2,33,240

Lily’s Capital A/c

1,99,360

5,10,000

5,10,000

Balance Sheet of Shilpa, Meena and Nanda as on March 31, 2017

Liabilities

Amount

Rs

Assets

Amount

Rs

Capitals:

Land

81,000

Shilpa

80,000

Stock

56,760

Meena

40,000

Debtors

18,600

Bank loan

20,000

Nanda’s Capital Account

23,000

Creditors

37,000

Cash

10,840

Provision for doubtful debts

1,200

General Reserve

12,000

1,90,200

1,90,200

In the books of Shilpa, Meena and Nanda

Realisation Account

Dr.

Cr.

Particulars

Amount

Rs

Particulars

Amount

Rs

Land

81,000

Bank Loan

20,000

Stock

56,760

Creditors

37000

Debtors

18,600

Provision for doubtful debts

1,200

Shilpa’s Capital A/c

20,000

Shilpa’s Capital A/c (Stock)

35,000

Cash :

Cash:

Creditors

31000

Stock

14000

Realisation Expenses

1,200

32200

Debtors

12300

Profit transferred to

Land

1,10,000

1,36,300

Shilpa’s Capital A/c

10,470

Meena’s Capital A/c

6,980

Nanda’s Capital A/c

3,490

20,940

2,29,500

2,29,500

Partners’ Capital Account

Dr.

Cr.

Particulars

Shilpa

Meena

Nanda

Particulars

Shilpa

Meena

Nanda

Balance b/d

–

–

23,000

Balance b/d

80,000

40,000

–

Realisation

35,000

General Reserve

6,000

4,000

2,000

(Stock)

Realisation

20,000

Cash

81,470

50,980

(Bank Loan)

Realisation (Profit)

10,470

6,980

3,490

Cash

17,510

1,16,470

50,980

23,000

1,16,470

50,980

23,000

Cash Account

Dr.

Cr.

Particulars

Amount

Rs

Particulars

Amount

Rs

Balance b/d

10,840

Realisation (Expenses)

32,200

Realisation (Assets)

1,36,300

Shilpa’s Capital A/c

81,470

Nanda’s Capital A/c

17,510

Meena’s Capital A/c

50,980

1,64,650

1,64,650

Balance Sheet of Surjit and Rahi as on March 31, 2017

Liabilities

Amount

Rs

Assets

Amount

Rs

Creditors

38,000

Bank

11,500

Mrs. Surjit loan

10,000

Stock

6,000

Reserve

15,000

Debtors

19,000

Rahi’s loan

5,000

Furniture

4,000

Capital’s:

Plant

28,000

Surjit

10,000

Investment

10,000

Rahi

8,000

Profit and Loss

7,500

86,000

86,000

Stock

Rs

5,000

Debtors

Rs

18,500

Furniture

Rs

4,500

Plant

Rs

25,000

Books of Surjit and Rahi

Realisation Account

Dr.

Cr.

Particulars

Amount

Rs

Particulars

Amount

Rs

Stock

6,000

Creditors

38,000

Debtors

19,000

Mrs. Surjit's Loan

10,000

Furniture

4,000

Surjit’s Capital A/c (Investment)

8,000

Plant

28,000

Bank:

Investment

10,000

Stock

5,000

Surjit’s Capital A/c

10,000

Debtors

18,500

(Mrs. Surjit's Loan)

Furniture

4,500

Bank:

Plant

25,000

53,000

Expenses

1,600

Loss transferred to:

Creditors

37,000

38,600

Surjit’s Capital A/c

3,960

Rahi’s Capital A/c

2,640

6,600

1,15,600

1,15,600

Partners’ Capital Account

Dr.

Cr.

Particulars

Surjit

Rahi

Particulars

Surjit

Rahi

Realisation (Investment)

8,000

Balance b/d

10,000

8,000

Realisation (Loss)

3,960

2,640

Realisation (Mrs. Surjit Loan)

10,000

Profit and Loss

4,500

3,000

Bank

12,540

8,360

Reserve

9,000

6,000

29,000

14,000

29,000

14,000

Rahi's Loan Account

Dr.

Cr.

Particulars

Amount

Rs

Particulars

Amount

Rs

Balance b/d

5,000

Bank

5,000

5,000

5,000

Bank Account

Dr.

Cr.

Particulars

Amount

Rs

Particulars

Amount

Rs

Balance b/d

11,500

Realisation (Creditors and Expenses)

38,600

Realisation A/c (Assets realised)

53,000

Rahi’s Loan

5,000

Surjit’s Capital A/c

12,540

Rahi’s Capital A/c

8,360

64,500

64,500

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

Rs

Debtors

30,000

Stock

26,000

Plant

42,750

In the books of Rita, Geeta and Ashish

Realisation Account

Dr.

Cr.

Particulars

Amount

Rs

Particulars

Amount

Rs

Debtors

52,300

Creditors

65,000

Stock

36,000

Bills Payable

26,000

Investment

69,000

Cash:

Plant

91,200

Debtors

30,000

Cash:

Stock

26,000

Outstanding Salaries

7,200

Plant

42,750

Discounted Bill

9,800

Investment

58,650

1,57,400

Creditors

65,000

Bills Payable

26,000

1,08,000

Loss transferred to

Rita’s Capital A/c

7,870

Rita’s Capital A/c

57,985

(Commission- 1,57,400 ´ 5/100)

Geeta’s Capital A/c

38,657

Ashish’s Capital A/c

19,328

1,15,970

364370

364370

Partners’ Capital Account

Dr.

Cr.

Particulars

Rita

Geeta

Ashish

Particulars

Rita

Geeta

Ashish

Realisation (Loss)

57,985

38,657

19,328

Balance b/d

80,000

50,000

30,000

Bank

39,885

18,010

14,005

General Reserve

10,000

6,667

3,333

Realisation

7,870

97,870

56667

33333

97870

56,667

33,333

Cash Account

Dr.

Cr.

Particulars

Amount

Rs

Particulars

Amount

Rs

Balance b/d

22,500

Realisation A/c

1,08,000

Realisation

1,57,400

Rita’s Capital

39,885

Geeta’s Capital A/c

18,010

Ashish’s Capital A/c

14,005

1,79,900

1,79,900

Balance Sheet of Anup and Sumit as on December 31, 2017

Liabilities

Amount

Rs

Assets

Amount

Rs

Sundry Creditors

27,000

Cash at bank

11,000

Reserve fund

10,000

Sundry Debtors

12,000

Loan

40,000

Plants

47,000

Capital

Stock

42,000

Anup

60,000

Lease hold land

60,000

Sumit

60,000

1,20,000

Furniture

25,000

1,97,000

1,97,000

Rs

Lease hold land

72,000

Furniture

22,500

Stock

40,500

Plant

48,000

Sundry Debtors

10,500

Books of Anup and Sumit

Realisation Account

Dr.

Cr.

Particulars

Amount

Rs

Particulars

Amount

Rs

Sundry Debtors

12,000

Sundry Creditors

27,000

Plants

47,000

Loan

40,000

Stock

42,000

Bank:

Lease hold land

60,000

Lease hold Land

72,000

Furniture

25,000

Furniture

22,500

Bank:

Stock

40,500

Creditors

25,500

Plant

48,000

Loan

40,000

Sundry Debtors

10,500

1,93,500

Expenses

2500

68,000

Profit transferred to

Anup’s Capital A/c

3,250

Sumit’s Capital A/c

3250

6,500

2,60,500

2,60,500

Partners’ Capital Account

Dr.

Cr.

Particulars

Anup

Sumit

Particulars

Anup

Sumit

Bank

68,250

68,250

Balance b/d

60,000

60,000

Reserve Fund

5,000

5,000

Realisation

3,250

3,250

68,250

68,250

68,250

68,250

Bank Account

Dr.

Cr.

Particulars

Amount

Rs

Particulars

Amount

Rs

Balance b/d

11,000

Realisation (Expenses and Liabilities)

68,000

Realisation (Assets )

1,93,500

Anup’s Capital A/c

68,250

Sumit’s Capital A/c

68,250

2,04,500

2,04,500

Balance Sheet of Ashu and Harish as on December 31, 2017

Liabilities

Amount

Rs

Assets

Amount

Rs

Capitals:

Building

80,000

Ashu

1,08,000

Machinery

70,000

Harish

54,000

1,62,000

Furniture

14,000

Creditors

88,000

Stock

20,000

Bank overdraft

50,000

Investments

60,000

Debtors

48,000

Cash in hand

8,000

3,00,000

3,00,000

Books of Ashu and Harish

Realisation Account

Dr.

Cr.

Particulars

Amount

Rs

Particulars

Amount

Rs

Building

80,000

Creditors

88,000

Machinery

70,000

Bank overdraft

50,000

Furniture

14,000

Ashu’s Capital A/c (Assets taken)

1,43,000

Stock

20,000

Harish’s Capital A/c (Assets taken)

1,12,000

Investments

60,000

Cash (Debtors)

46,000

Debtors

48,000

Ashu’s Capital A/c (Creditors)

88,000

Harish’s Capital A/c (Bank Overdraft)

50,000

Cash (Expenses)

3,000

Profit transferred to

Ashu’s Capital A/c

3,600

Harish’s Capital A/c

2,400

6,000

4,39,000

4,39,000

Partners’ Capital Account

Dr.

Cr.

Particulars

Ashu

Harish

Particulars

Ashu

Harish

Realisation (Assets taken)

1,43,000

1,12,000

Balance b/d

1,08,000

54,000

Cash

56,600

Realisation (Liabilities)

88,000

50,000

Realisation (Profit)

3,600

2,400

Cash

5,600

1,99,600

1,12,000

1,99,600

1,12,000

Cash Account

Dr.

Cr.

Particulars

Amount

Rs

Particulars

Amount

Rs

Balance b/d

8,000

Realisation (Expenses)

3,000

Realisation (Debtors)

46,000

Ashu’s Capital A/c

56,600

Harish’s Capital A/c

5,600

59,600

59,600

Ashu

Harish

Building

95,000

Machinery and Furniture

80,000

Stock (3:2)

12,000

8,000

Investment (3:2)

36,000

24,000

Rs 1,43,000

Rs 1,12,000

Balance Sheet of Sanjay, Tarun and Vineet as on December 31, 2017

Liabilities

Amount

Rs

Assets

Amount

Rs

Capitals:

Plant

90,000

Sanjay

1,00,000

Debtors

60,000

Tarun

1,00,000

Furniture

32,000

Vineet

70,000

2,70,000

Stock

60,000

Creditors

80,000

Investments

70,000

Bills payable

30,000

Bills receivable

36,000

Cash in hand

32,000

3,80,000

3,80,000

Books of Sanjay, Tarun and Vineet

Realisation Account

Dr.

Cr.

Particulars

Amount

Rs

Particulars

Amount

Rs

Plant

90,000

Creditors

80,000

Debtors

60,000

Bills Payable

30,000

Furniture

32,000

Cash:

Stock

60,000

Plant

72,000

Investment

70,000

Debtors

54,000

Bills Receivable

36,000

Furniture

18,000

Cash :

Stock

54,000

Creditors

80,000

Investments

76,000

Bills Payable

30,000

1,10,000

Bills Receivable

31,000

3,05,000

Sanjay’s Capital A/c

18,300

Loss transferred to

(6% commission)

Sanjay’s Capital

30,650

Tarun’s Capital A/c

20,433

Vineet’s Capital A/c

10,217

61,300

4,76,300

4,76,300

Partners’ Capital Account

Dr.

Cr.

Particulars

Sanjay

Tarun

Vineet

Particulars

Sanjay

Tarun

Vineet

Realisation (Loss)

30,650

20,433

10,217

Balance b/d

1,00,000

1,00,000

70,000

Cash

87,650

79,567

59,783

Realisation (commission)

18,300

1,18,300

1,00,000

70,000

1,18,300

1,00,000

70,000

Cash Account

Dr.

Cr.

Particulars

Amount

Rs

Particulars

Amount

Rs

Balance b/d

32,000

Realisation

1,10,000

Realisation

3,05,000

Sanjay’s Capital A/c

87,650

Tarun’s Capital A/c

79,567

Vineet’s Capital A/c

59,783

3,37,000

3,37,000

Balance Sheet of Gupta and Sharma as on December 31, 2017

Liabilities

Amount

Rs

Assets

Amount

Rs

Sundry Creditors

38,000

Cash at Bank

12,500

Mrs.Gupta’s loan

20,000

Sundry Debtors

55,000

Mrs.Sharma’s loan

30,000

Stock

44,000

Reserve fund

6,000

Bills Receivable

19,000

Provision of doubtful debts

4,000

Machinery

52,000

Capital

Investment

38,500

Gupta

90,000

Fixtures

27,000

Sharma

60,000

1,50,000

2,48,000

2,48,000

Rs

Sundry Debtors

52,000

Stock

42,000

Bills receivable

16,000

Machinery

49,000

Books of Gupta and Sharma

Journal

Date

Particulars

L.F.

Amount

Rs

Amount

Rs

2012

Dec. 31

Realisation A/c

Dr.

2,35,500

To Sundry Debtors A/c

55,000

To Stock A/c

44,000

To Bills Receivable A/c

19,000

To Machinery A/c

52,000

To Investment A/c

38,500

To Fixtures A/c

27,000

(Assets transferred to Realisation Account)

Dec. 31

Sundry Creditors A/c

Dr.

38,000

Mrs. Gupta’s Loan A/c

Dr.

20,000

Mrs. Sharma’s Loan A/c

Dr.

30,000

Provision for Doubtful Debts

Dr.

4,000

To Realisation A/c

92,000

(Liabilities transferred to Realisation Account)

Dec. 31

Bank A/c

Dr.

1,59,000

To Realisation A/c

1,59,000

(Assets realised: Sundry Debtors Rs 52,000, Stock Rs 42,000,

Bills Receivable Rs 16,000, Machinery Rs 49,000)

Dec. 31

Realisation A/c

Dr.

20,000

To Gupta’s Capital A/c

20,000

(Gupta took over Mrs. Gupta's Loan)

Dec. 31

Gupta’s Capital A/c

Dr.

36,000

To Realisation A/c

36,000

(Investment taken over by Gupta)

Dec. 31

Realisation A/c

Dr.

66,860

To Bank A/c

66,860

(Liabilities paid: Mrs. Sharma's Loan Rs 30,000 and Creditors

Rs 38,000 paid off less 3% discount)

Dec. 31

Realisation A/c

Dr.

1,200

To Bank A/c

1,200

(Realisation expenses paid)

Dec. 31

Gupta’s Capital A/c

Dr.

18,280

Sharma’s Capital A/c

Dr.

18,280

To Realisation A/c

36,560

(Loss on Realisation transferred to Partners’ capital Account)

Dec. 31

Reserve Fund A/c

Dr.

6,000

To Gupta’s Capital A/c

3,000

To Sharma’s Capital A/c

3,000

(Reserve fund distributed among partners ratio)

Dec. 31

Gupta’s Capital A/c

Dr.

58,720

Sharma’s Capital A/c

Dr.

44,720

To Bank A/c

1,03,440

(Final payment made to partners)

Realisation Account

Dr.

Cr.

Particulars

Amount

Rs

Particulars

Amount

Rs

Sundry Debtors

55,000

Sundry Creditors

38,000

Stock

44,000

Mrs. Gupta’s Loan

20,000

Bills Receivable

19,000

Mrs. Sharma’s Loan

30,000

Machinery

52,000

Provision for Doubtful Debts

4,000

Investment

38,500

Bank :

Fixtures

27,000

Sundry Debtors

52,000

Gupta’s Capital A/c (Mrs. Gupta Loan)

20,000

Stock

42,000

Bank A/c:

Bills Receivable

16,000

Creditors

36,860

Machinery

49,000

1,59,000

Mrs. Sharma’s Loan

30,000

Gupta’s Capital A/c (Investment)

36,000

Expense

1,200

68,060

Loss transferred to

Gupta’s Capital A/c

18,280

Sharma’s Capital A/c

18,280

36,560

3,23,560

3,23,560

Partners’ Capital Account

Dr.

Cr.

Particulars

Gupta

Sharma

Particulars

Gupta

Sharma

Realisation (Investment)

36,000

Balance b/d

90,000

60,000

Realisation (Loss)

18,280

18,280

Realisation (Mrs. Gupta Loan)

20,000

Bank

58,720

44,720

Reserve Fund

3,000

3,000

1,13,000

63,000

1,13,000

63,000

Bank Account

Dr.

Cr.

Particulars

Amount

Rs

Particulars

Amount

Rs

Balance b/d

12,500

Realisation

68,060

Realisation (Assets realised)

1,59,000

(Payment of expenses and liabilities)

Gupta’s Capital A/c

58,720

Sharma’s Capital A/c

44,720

1,71,500

1,71,500

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

Realisation Account

Dr.

Cr.

Particulars

Amount

Rs

Particulars

Amount

Rs

Sundry Debtors

58,000

Sundry Creditors

20,000

Stock

39,500

Bills Payable

25,500

Machinery

48,000

Ashok’s Current A/c (Investment)

40,000

Investment

42,000

Babu’s Current A/c (Machinery)

45,000

Freehold property

50,500

Chetan’s Current A/c

55,000

Bank:

(Free hold property)

Sundry Creditors

18,600

Bank:

Bills payable

25,500

Sundry Debtors

56,500

Expenses

3,000

47,100

Stock

36,500

Profit Transferred to

Unrecorded computer

9,000

1,02,000

Ashok’s Current A/c

1,200

Babu’s Current A/c

800

Chetan’s Current A/c

400

2,400

2,87,500

2,87,500