Question

Given below is an abstract of particulars related to a dissolved partnership firm on 31.3.2009 where Sam, Gopal and Rahim were partners sharing profits on 5:3:2

Liabilities: Capital – 

Sam : 200000 

Gopal: 150000 

Rahim:100000 

Creditors – 50000 

General Reserve- 100000

The firm collects the balance from the creditors after adjustment of fixtures taken over by them. 

Prepare: Realisation Account, Capital accounts and Cash account.

Answer 1

Realisation a/c

Capital A/c

Cash A/c

Note: When a creditor accepts an asset which has a higher value than the amount due to him, then an entry will be passed only for receiving the excess amount from such creditor. Here, fixture taken over by creditor for Rs.60000, which is higher than the amount due to him i.e. 50000. The excess amount Rs.10000/- (60000 – 50000) is credited to Realisation a/c.