Page 154 - ISCDEBK-12

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

Dr. BANK ACCOUNT Cr.
Particulars ` Particulars `
To Balance b/d 50,000 By Realisation A/c (Liabilities Paid) 1,31,400
To Cash A/c 22,000 By X’s Capital A/c 9,100
To Realisation A/c (Assets Realised) 5,22,000 By Realisation A/c 2,000
To Realisation A/c (Bad Debts Recovered) 1,000 By Loan from X A/c 10,000
To Realisation A/c 500 By X’s Capital A/c (Final Payment) 2,59,000
By Y’s Capital A/c (Final Payment) 1,84,000
5,95,500 5,95,500
Illustration 13.
Asha, Rekha and Saroj sharing profit in the proportion of 1/6 : 1/3 : 1/2 agreed upon
dissolution of their partnership on 31st March, 2018 on which date their Balance Sheet
was as follows:

Liabilities ` Assets `
Capital A/cs: Sundry Assets 37,500
Asha 30,000 Debtors 7,500
Rekha 22,500 52,500 Less: Provision for Discount on Debtors 375 7,125
Mrs. Asha’s Husband’s Loan 5,000 Stock (At Invoice Price) 7,500
Creditors 13,875 Investments 13,500
Salary Outstanding 1,500 Cash in Hand 7,625
Investments Fluctuation Reserve 10,500 Cash at Bank 17,625
Reserve 7,500 Saroj’s Capital 1,500
Stock Reserve 1,500
92,375 92,375
Additional Information:

(i) Investments were taken by Asha at ` 12,000.
(ii) Creditors of ` 7,500 were taken over by Rekha, who has agreed to settle the account
with them at ` 7,425. Remaining Creditors were paid ` 5,625.
(iii) Sundry Assets realised ` 52,500.
(iv) Stock and Debtors realised ` 5,250 and ` 6,750 respectively.
(v) A customer, whose account was written off as bad, now paid ` 600, which is not
included in ` 7,500 above.
(vi) It was found that an Investment not recorded in the books was worth ` 2,250,
half of which was handed over to an unrecorded liability of ` 3,750 in settlement
of his claim of ` 1,875 and remaining half was sold in the market, which
realised ` 975.
(vii) The Expenses of Realisation amounted to ` 825.
Prepare Realisation Account, Partners’ Capital Accounts and Cash Account to close the
books of firm. [CA(P.E.I.) Nov., 2004, Modified]