Page 132 - ISCDEBK-12

6.6 Double Entry Book Keeping (Section A)—ISC XII

Dr. PARTNERS’ CAPITAL ACCOUNTS Cr.
Particulars Antony (`) Birdy (`) Costello (`) Particulars Antony (`) Birdy (`) Costello (`)
To Balance b/d ... ... 60,000 By Balance b/d 4,00,000 2,50,000 ...
To Realisation A/c 6,00,000 90,000 ... By Reserve A/c 24,000 24,000 12,000
To Shares in By Realisation A/c 50,000 50,000 25,000
Piyush Limited A/c 2,40,000 2,40,000 ... (Gain)
To Bank A/c (Bal. Fig.) 34,000 ... ... By Realisation A/c 4,00,000 ... ...
(Final Payment) By Bank A/c (Bal. Fig.) ... 6,000 23,000
8,74,000 3,30,000 60,000 8,74,000 3,30,000 60,000

Dr. BANK ACCOUNT Cr.
Particulars ` Particulars `

To Balance b/d 50,000 By Realisation A/c (Repair of Car) 20,000
To Costello’s Capital A/c 23,000 By Realisation A/c (Creditors) 25,000
(Cash Brought in) By Antony’s Capital A/c 34,000
To Birdy’s Capital A/c 6,000 (Final Payment)
(Cash Brought in)
79,000 79,000
Illustration 3 (Realisation Expenses are borne by a Partner).
Partap, Gaurav and Amar are partners sharing profits and losses in the ratio of 5 : 3 : 2.
They decide to dissolve the firm whose Balance Sheet is given below:
Liabilities ` Assets `

Trade Creditors 70,000 Bank 70,000
Capital A/cs: Sundry Debtors 50,000
Partap 2,00,000 Stock 60,000
Gaurav 1,50,000 Furniture 25,000
Amar 1,50,000 5,00,000 Patents 35,000
Current A/cs: Machinery 1,00,000
Partap 30,000 Building 3,20,000
Gaurav 20,000 50,000 Amar’s Current A/c 10,000
Profit and Loss A/c 50,000 Advertisement Suspense A/c 30,000
Workmen Compensation Reserve 30,000
7,00,000 7,00,000
Following transactions took place at the time of dissolution:
(i) Gaurav took Stock for ` 55,000 and Amar took Building for ` 4,00,000.
(ii) Other assets realised as follows: Debtors—` 48,000; Furniture—` 17,000; Machinery—
` 80,000.
(iii) Patents did not realise any amount and Trade Creditors were settled by paying them
` 65,000.
(iv) Realisation Expenses were to be borne by Partap for which it was agreed to pay him
` 10,000. Actual Realisation Expenses paid out of firm’s Bank Account were ` 12,000.
Prepare Realisation Account, Partners’ Current and Capital Accounts and Bank Account.