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

5. Following is the Balance Sheet of A and B for the year ended 31st March, 2018:

Liabilities ` Assets `

Capital A/cs: Goodwill 30,000
A 34,000 Building 24,000
B 28,000 62,000 Furniture 4,000
A’s Loan 20,000 Stock 14,000
Reserve 12,000 Sundry Debtors 30,000
Sundry Creditors 4,000 Less: Provision for Doubtful Debts 4,000 26,000
Bills Payable 10,000 Bills Receivable 6,000
Cash 4,000
1,08,000 1,08,000

A and B shared the profits and losses equally. They decided to dissolve the partnership on the
above date.
The assets of the firm realised as follows:
Building ` 32,000; Furniture ` 4,000; Sundry Debtors ` 24,000; Goodwill Nil; Stock ` 10,000; Bills
Receivable ` 5,000. Realisation Expenses amounted to ` 3,400.
The Creditors agreed to accept ` 400 less. Compensation to Employees paid by the firm amounted
to ` 3,000. This liability was not provided for in the above Balance Sheet.
There was a printer in the firm, which was bought out of the firm’s money, was not shown in the
above Balance Sheet. This printer is now sold for ` 4,000.
Prepare Realisation Account, Partners’ Capital Accounts and Cash Account.
6. A and B were partners sharing profits and losses as to 7/11th to A and 4/11th to B. They dissolved the
partnership on 30th May, 2018. On that date their Capitals were: A ` 7,000 and B ` 4,000. There were
also dues on Loan Account to A ` 4,500 and to B ` 750. The other liabilities amounted to ` 5,000. The
assets proved to have been undervalued in the last Balance Sheet and actually realised ` 24,000.
Prepare necessary accounts showing the final settlement between partners.
7. On 1st April, 2018 A, B and C commenced business in partnership sharing profits and losses in
proportion of 1/2, 1/3 and 1/6 respectively. They deposited in their Bank Account as their Capital
` 22,000: ` 10,000 by A; ` 7,000 by B; and ` 5,000 by C. During the year, they drew ` 5,000: being
` 1,900 by A; ` 1,700 by B; and ` 1,400 by C.
On 31st March, 2019 they dissolved their partnership, A taking up Stock at an agreed value of ` 5,000;
B taking up Furniture at ` 2,000; and C taking up Debtors at ` 3,000. After paying up their Creditors,
there remained a balance of ` 1,000 at Bank.
Prepare necessary accounts showing the distribution of the cash at the Bank and of the further cash
brought in by any partner or partners as the case required.
8. X and Y were partners sharing profits and losses in the ratio of 3 : 2. They decided to dissolve the firm
on 31st July, 2018. On that date, their Capitals were: X ` 40,000 and Y ` 30,000. Creditors amounted
to ` 24,000.
Assets were realised for ` 88,500. Creditors of ` 16,000 were taken over by X at ` 14,000. Remaining
Creditors were paid at ` 7,500. The cost of Realisation came to ` 500.
Prepare necessary accounts.