Page 138 - ISCDEBK-12

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

Dr. BANK ACCOUNT Cr.
Particulars ` Particulars `
To Balance b/d 4,500 By Realisation A/c (Liabilities Paid) 1,50,230
To Realisation A/c: By Realisation A/c (Expenses) 2,100
Assets Realised 1,26,750
Recovery of Bad Debts 1,800 1,28,550
To Fox’s Capital A/c (Cash Brought in) 10,390
To Wolf’s Capital A/c (Cash Brought in) 8,890
1,52,330 1,52,330

Notes: 1. Profit-sharing ratio is not given. Therefore, profits/losses shall be shared equally.
2. Claim for damages was ` 4,000 but it was settled for ` 2,000. Therefore, payment of ` 2,000 shall
be debited to Realisation Account.

Illustration 6.
X, Y and Z are sharing profits as 2 : 3 : 5 and their Balance Sheet as at 31st March, 2018
is as follows:
BALANCE SHEET
as at 31st March, 2018
Liabilities ` Assets `
Capital A/cs: Building 10,00,000
X 3,50,000 Equipments 2,00,000
Y 4,50,000 Stock 8,00,000
Z 5,50,000 13,50,000 Sundry Debtors 6,00,000
Sundry Creditors 3,00,000 Cash at Bank 3,00,000
Bank Loan 6,00,000
X’s Loan 6,50,000
29,00,000 29,00,000
The firm was dissolved on the above date. Close the books of the firm on the basis of
the following information:
(i) An unrecorded asset was realised at ` 75,000.
(ii) A debt of ` 2,50,000 previously written off as bad was received.

(iii) Sundry Creditors took a computer included in Equipments, in part payments of
` 2,00,000. They were paid the balance at 10% discount. The remaining Equipments
were sold for ` 30,000.

(iv) Building realised ` 9,75,000 and Sundry Debtors realised ` 5,50,000.
(v) Bank Loan was settled by handing over the entire Stock to them along with a payment
of ` 50,000 by cheque.
(vi) Y was to get a remuneration of ` 60,000 for completing the dissolution process and
he had to bear Realisation Expenses which amounted to ` 56,000 paid by the firm.