Page 139 - ISCDEBK-12

Dissolution of a Partnership Firm 6.13
Solution:

Dr. REALISATION ACCOUNT Cr.
Particulars ` Particulars `
To Building A/c 10,00,000 By Sundry Creditors A/c 3,00,000
To Equipments A/c 2,00,000 By Bank Loan A/c (Note) 6,00,000
To Stock A/c 8,00,000 By Bank A/c (Assets Realised):
To Sundry Debtors A/c 6,00,000 Unrecorded Asset 75,000
To Bank A/c (Bank Loan) 50,000 Bad Debts Recovered 2,50,000
To Bank A/c (Sundry Creditors Paid) 90,000 Building 9,75,000
(` 1,00,000 – ` 10,000) Sundry Debtors 5,50,000
To Y’s Capital A/c (Remuneration) 60,000 Equipments 30,000 18,80,000
By Loss transferred to:
X’s Capital A/c 4,000
Y’s Capital A/c 6,000
Z’s Capital A/c 10,000 20,000
28,00,000 28,00,000

Dr. X’s LOAN ACCOUNT Cr.

Particulars ` Particulars `
To Bank A/c (Repayment of Loan) 6,50,000 By Balance b/d 6,50,000
6,50,000 6,50,000

Dr. PARTNERS’ CAPITAL ACCOUNTS Cr.
Particulars X (`) Y (`) Z (`) Particulars X (`) Y (`) Z (`)
To Realisation A/c (Loss) 4,000 6,000 10,000 By Balance b/d 3,50,000 4,50,000 5,50,000
To Bank A/c (Expenses) ... 56,000 ... By Realisation A/c ... 60,000 ...
To Bank A/c 3,46,000 4,48,000 5,40,000
(Final Payment)
3,50,000 5,10,000 5,50,000 3,50,000 5,10,000 5,50,000

Dr. BANK ACCOUNT Cr.
Particulars ` Particulars `

To Balance b/d 3,00,000 By Realisation A/c (Bank Loan) 50,000
To Realisation A/c (Assets Realised) 18,80,000 By Realisation A/c (Sundry Creditors Paid) 90,000
By Y’s Capital A/c (Expenses) 56,000
By X’s Loan A/c (Repayment) 6,50,000
By X’s Capital A/c (Final Payment) 3,46,000
By Y’s Capital A/c (Final Payment) 4,48,000
By Z’s Capital A/c (Final Payment) 5,40,000
21,80,000 21,80,000

Note: Bank overdraft is not transferred to Realisation Account whereas bank loan is transferred to
Realisation Account.