Page 158 - ISCDEBK-12

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

STATEMENT SHOWING DISTRIBUTION OF SHARES AND DEBENTURES
Particulars Total Lion Tiger
` ` `

(i) Debentures of Classmate Ltd. 1,600 debentures of ` 100 each,
valued @ ` 75 per debenture 1,20,000
Less: Debentures allotted to Tiger against his Loan 30,000
Balance Distributed between Partners equally against Capital 90,000 45,000 45,000
(ii) Equity Shares of Classmate Ltd. 1,600 shares of ` 100 each, valued @ ` 125
per share distributed in the ratio of capitals, i.e., 2,40,000 : 80,000 or 3 : 1. 1,50,000 50,000

Illustration 15.
Cat and Rat were in partnership sharing profits and losses in the ratio of 3 : 1. On 31st March, 2020, the
Balance Sheet of the firm was as follows:
Liabilities ` Assets `

Capital A/cs: Fixed Assets 21,000
Cat 24,000 Stock
11,200
Rat 8,000 32,000 Sundry Debtors 19,600
Current A/cs: Cash at Bank 3,720
Cat 4,200
Rat 2,000 6,200
Loan (Rat) 3,000
Creditors 14,320
55,520 55,520

They decided to dissolve the partnership firm as at the date of the Balance Sheet.
Elephant Ltd. agreed to take Stock and Fixed Assets excluding furniture having a book value of
` 4,100, for a consideration of ` 48,000 which is to be satisfied by payment of cash ` 16,000, allotment of
160 Preference Shares of ` 100 each valued at ` 75 per share and the balance by allotment of 1,600 Equity
Shares of the face value of ` 10 each.
The Debtors realised ` 19,200 and the Creditors were settled for ` 14,000.
The following was the agreement between the partners:

(i) The Equity Shares should be allotted in the ratio of the Partners’ Capital Accounts as per
Balance Sheet.
(ii) Cat to take over the furniture at an agreed value of ` 4,200.
(iii) The Preference Shares to be allotted to Rat to the value of his loan and the remaining to be allotted
equally between the partners.
(iv) Balance remaining to be settled in cash.
You are required to show: (a) Realisation Account, (b) Partners’ Capital Accounts, (c) Bank Account and
Statement showing distribution of shares.