Question

Ritu, Deepika and Vinny enter into a partnership contract with profit sharing ratio of 5:3:1. The Balance Sheet as on 31st March, 2015 is given as follows:

              Balance Sheet as on 31^st March, 2015

Liabilities	Amount	Assets	Amount
Bills Payable	40,000	Buildings	40,000
Loan from Bank	30,000	Plant and Machinery	40,000
Reserve Fund	9,000	Stock	19,000
Capital		Debtors 42,000
- Ritu 44,000		Less: Provision for Bad Debt 2,000	40,000
- Deepika 36,000		Bank	40,000
- Vinny 20,000	1,00,000
	1,79,000		1,79,000

Due to some problems, the partners decided to dissolve the firm. The assets realized as follows:

Stock – Rs.23,400, Debtors – 50%, Fixed Assets – 10% less than their book value

Bills Payable were settled for Rs.32,000. There was outstanding bill of repairs Rs.800, which was paid off. Realisation expenses of Rs.1,250 were also paid. Prepare Realization Account, Bank Account and Partners’Capital Account.

Answer 1

          REALISATION ACCOUNT

BANK ACCOUNT

Particulars	Amount (Rs.)	Particulars	Amount (Rs.)
To Balance b/d	40,000	By Realisation (Bills Payable)	32,000
To Realisation (Stock)	23,400	By Realisation (Loan)	30,000
To Realisation (Debtors)	21,000	By Realisation (Expense)	1,250
To Realisation (Fixed Assets)	72,000	By Realisation (Repairs)	800
		By CapitalAccount
		- Ritu 39,750
		- Deepika 33,45
		- Vinny 19,150	92,350
	1,56,400		1,56,400

PARTNERS’ CAPITAL ACCOUNT

Particulars	Ritu	Deepika	Vinny	Particulars	Ritu	Deepika	Vinny
To Realisation Account (loss)	9,250	5,550	1,850	By Balance b/d	44,000	36,000	20,000
To Bank	39,750	33,450	19,150	By Reserve fund	5,000	3,000	1,000
	49,000	39,000	21,000		49,000	39,000	21,000