Page 155 - ISCDEBK-12

Dissolution of a Partnership Firm 6.29
Solution:

Dr. REALISATION ACCOUNT Cr.
Particulars ` Particulars `
To Sundry Assets A/c 37,500 By Provision for Discount on Debtors A/c 375
To Debtors A/c 7,500 By Mrs. Asha’s Husband’s Loan A/c 5,000
To Stock A/c 7,500 By Creditors A/c 13,875
To Investments 13,500 By Salary Outstanding A/c 1,500
To Rekha’s Capital A/c (Creditors) 7,425 By Investments Fluctuation Reserve A/c 10,500
To Bank A/c (Asha’s Husband’s Loan) 5,000 By Stock Reserve A/c 1,500
To Bank A/c (Sundry Liabilities): By Asha’s Capital A/c (Investments) 12,000
Remaining Creditors 5,625 By Bank A/c (Assets Realised):
Unrecorded Liability (Note) 1,875 Sundry Assets 52,500
Salary Outstanding 1,500 9,000 Stock 5,250
To Bank A/c (Realisation Expenses) 825 Debtors 6,750
To Gain (Profit) transferred to: Unrecorded Investments 975 65,475
Asha’s Capital A/c 3,763 By Bank A/c (Bad Debts Recovered) 600
Rekha’s Capital A/c 7,525
Saroj’s Capital A/c 11,287 22,575
1,10,825 1,10,825

Dr. PARTNERS’ CAPITAL ACCOUNTS Cr.
Particulars Asha Rekha Saroj Particulars Asha Rekha Saroj
` ` ` ` ` `
To Balance c/d ... ... 1,500 By Balance b/d 30,000 22,500 ...
To Realisation A/c 12,000 ... ... By Reserve A/c 1,250 2,500 3,750
(Investment taken) By Realisation A/c ... 7,425 ...
To Bank A/c (Bal. Fig.) 23,013 39,950 13,537 (Creditors taken over)
(Final Payment) By Realisation A/c (Gain) 3,763 7,525 11,287
35,013 39,950 15,037 35,013 39,950 15,037

Dr. BANK ACCOUNT Cr.
Particulars ` Particulars `
To Balance b/d 17,625 By Realisation A/c (Mrs. Asha’s Husband Loan) 5,000
To Cash A/c 7,625 By Realisation A/c (Sundry Liabilities) 9,000
To Realisation A/c (Bad Debts Recovered) 600 By Realisation A/c (Realisation Expenses) 825
To Realisation A/c (Assets Realised) 65,475 By Asha’s Capital A/c 23,013
By Rekha’s Capital A/c 39,950
By Saroj’s Capital A/c 13,537

91,325 91,325
Note: Unrecorded investment worth ` 1,125 was given as settlement of unrecorded liability of ` 3,750 for a claim
of ` 1,875. Balance amount of 1,875 has been paid in cash.