Page 135 - ISCDEBK-12

Dissolution of a Partnership Firm 6.9

Bank A/c ...Dr. 98,200
To Realisation A/c 98,200
(Being the realisation of different assets) (Stock ` 20,200 + Debtors ` 15,000 +
Machinery ` 40,000 + Investments ` 18,000 + Goodwill ` 5,000)
Kiran’s Capital A/c ...Dr. 7,000
To Realisation A/c 7,000
(Being Kiran took over the bills receivable)
Realisation A/c ...Dr. 10,000
To Kiran’s Capital A/c 10,000
(Being Kiran took over the bills payable at book value)
Bank A/c ...Dr. 1,200
To Realisation A/c 1,200
(Being the unrecorded asset sold)
Realisation A/c ...Dr. 22,500
To Bank A/c 22,500
(Being the creditors settled at 10% discount)
Realisation A/c ...Dr. 8,000
To Prakash’s Capital A/c 8,000
(Being the contingent liability for a bill discounted settled by Prakash)
Realisation A/c ...Dr. 5,000
To Prakash’s Capital A/c 5,000
(Being Mrs. Prakash’s loan accepted by Prakash)
Realisation A/c ...Dr. 2,100
To Kiran’s Capital A/c 2,100
(Being the realisation expenses met by Kiran)
General Reserve A/c ...Dr. 27,000
To Prakash’s Capital A/c 13,500
To Kiran’s Capital A/c 9,000
To Rishab’s Capital A/c 4,500
(Being the general reserve distributed among partners in the profit-sharing ratio)
Workmen Compensation Fund A/c ...Dr. 3,000
To Prakash’s Capital A/c 1,500
To Kiran’s Capital A/c 1,000
To Rishab’s Capital A/c 500
(Being the workmen compensation fund distributed among partners since
there is no claim against it)
Prakash’s Capital A/c ...Dr. 9,900
Kiran’s Capital A/c ...Dr. 6,600
Rishab’s Capital A/c ...Dr. 3,300
To Profit and Loss A/c 19,800
(Being the undistributed loss distributed among the partners in the ratio of 3 : 2 : 1)
Prakash’s Capital A/c ...Dr. 19,200
Kiran’s Capital A/c ...Dr. 12,800
Rishab’s Capital A/c ...Dr. 6,400
To Realisation A/c 38,400
(Being the realisation loss transferred to Partners’ Capital Accounts
in the ratio of 3 : 2 : 1)
Bank A/c ...Dr. 15,700
To Rishab’s Capital A/c 15,700
(Being the deficiency brought in by Rishab)
Prakash’s Capital A/c ...Dr. 58,900
Kiran’s Capital A/c ...Dr. 35,700
To Bank A/c 94,600
(Being the final payment to partners on dissolution)