Question

Saji, Stephen and Sunil were partners sharing profits and losses in the ratio of 1:2:2. Their Balance Sheet as on 31^st March 2013 was as follows:

The partners agreed to dissolve the firm on the following terms: 

a) Assets realised as – Land and Buildings – Rs.120000, Stock – Rs. 40000, Accounts receiv-able – Rs.15,000. 

b) Expenses on dissolution – Rs. 3000 

c) A creditor accepts office equipment for Rs.7000 and the remaining creditors were Paid in full by cheque.

d) The Joint Life Insurance Policy was surrendered for Rs.9,000. Prepare realization a/c, capital accounts and bank account.

Answer 1

Realisation a/c

Capital A/c

Bank a/c