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

Dr. INPUT SGST ACCOUNT Cr.
Particulars ` Particulars `
To B’s Capital A/c 450 By Output SGST A/c 450

Dr. PARTNERS’ CAPITAL ACCOUNTS Cr.
Particulars A (`) B (`) Particulars A (`) B (`)
To Profit and Loss A/c 12,000 8,000 By Balance b/d 2,00,000 1,00,000
To Advertisement Suspense A/c 6,000 4,000 By General Reserve A/c 18,000 12,000
To Realisation A/c 57,800 ... By Realisation A/c 50,000 ...
To Output CGST A/c 5,202 ... (Mrs. A’s Loan A/c)
To Output SGST A/c 5,202 ... By Realisation A/c (Expenses) ... 5,000
To Realisation A/c (Loss) 32,220 21,480 By Input CGST A/c ... 450
To Bank A/c 1,49,576 84,420 By Input SGST A/c ... 450
2,68,000 1,17,900 2,68,000 1,17,900

Illustration 11.
A, B and C sharing profits in the ratio of 2 : 2 : 1 agreed upon dissolution of their
partnership on 31st March, 2018 on which date their Balance Sheet was as under:

Liabilities ` Assets `

Capital A/c—A 80,000 Fixed Assets 1,00,000
Capital A/c—B 60,000 Insurance Claim Receivable 50,000
Reserve 70,000 Debtors 20,000
Creditors 37,000 Less: Provision for Doubtful Debts 1,000 19,000
Outstanding Rent 4,000 Stock 16,000
Investments Fluctuation Reserve 1,000 Investments 16,000
Bank 47,000
Capital A/c—C 4,000
2,52,000 2,52,000

(i) Investments were taken over by A at ` 12,000; Creditors of ` 20,000 were taken over
by B who has agreed to settle account with them at ` 19,800. Remaining Creditors
were paid at ` 15,000.
(ii) Insurance Claim received ` 40,000 and Fixed Assets realised ` 1,40,000.

(iii) Stock and Debtors realised ` 14,000 and ` 18,000 respectively.
(iv) One customer, whose account was written off as bad, now paid ` 1,600 which is not
included in ` 18,000 above.

(v) There was one unrecorded asset estimated at ` 6,000, half of which was handed over
to an unrecorded liability of ` 10,000 in settlement of claim of ` 5,000 and remaining
half was sold in the market which realised ` 2,600.