Page 185 - DEBKVOL-1

8.10 Double Entry Book Keeping—CBSE XII
Solution:
Dr. REALISATION ACCOUNT Cr.
Particulars ` Particulars `
To Sundry Assets—Transfer: By Sundry Liabilities:
Bills Receivable 12,000 Bills Payable 20,000
Stock 25,000 Creditors 18,000
Sundry Debtors 40,000 Mrs. Vishnu’s Loan 20,000
Land and Building 50,000 Outstanding Salary 5,000
Furniture 10,000 Investments Fluctuation Fund 10,000
Computer 5,000 Provision for Doubtful Debts 4,000
Investments 30,000 1,72,000 Workmen Compensation Reserve 5,000
To Cash/Bank A/c: By Cash/Bank—Assets Realised:
Bills Payable 20,000 Debtors 40,000
Creditors 16,200 36,200 Stock 22,000
To Cash/Bank A/c: Land and Building 70,000
Mrs. Vishnu’s Loan 20,000 Furniture 8,000
Outstanding Salary 5,000 Less: Commission 500 7,500
Employees’ Investments 35,000
Compensation 20,000 Less: Commission 600 34,400
Workmen Compensation Claim 5,000 50,000 Bills Receivable 11,400 1,85,300
To Gain (Profit) transferred to: By Vishnu’s Capital A/c 3,000
Vishnu’s Capital A/c 6,050 —Computer
Sanjiv’s Capital A/c 3,630
Sudhir’s Capital A/c 2,420 12,100
2,70,300 2,70,300

Dr. PARTNERS’ CAPITAL ACCOUNTS Cr.
Particulars Vishnu Sanjiv Sudhir Particulars Vishnu Sanjiv Sudhir
` ` ` ` ` `
To Realisation A/c 3,000 ... ... By Balance b/d 40,000 30,000 18,000
—Assets taken over By Workmen Compen-
To Cash/Bank A/c 48,050 36,630 22,420 sation Reserve A/c 5,000 3,000 2,000
(Bal. Fig.) (WN)
By Realisation A/c—Gain 6,050 3,630 2,420
51,050 36,630 22,420 51,050 36,630 22,420

Dr. CASH/BANK ACCOUNT Cr.
Particulars ` Particulars `
To Balance b/d 8,000 By Realisation A/c—B/P and Creditors 36,200
To Realisation A/c—Assets Realised 1,85,300 By Realisation A/c—Liabilities 50,000
By Vishnu’s Capital A/c—Final Payment 48,050
By Sanjiv’s Capital A/c—Final Payment 36,630
By Sudhir’s Capital A/c—Final Payment 22,420
1,93,300 1,93,300

Working Note: Compensation claim payable to workmen is ` 5,000, hence, amount of Workmen Compensation
Reserve to the extent of claim is transferred to Realisation Account. The balance amount of Workmen
Compensation Reserve is distributed among the partners in their profit-sharing ratio. If there was no liability then
the whole amount of Workmen Compensation Reserve would have been credited to Partners’ Capital Accounts
in their profit-sharing ratio.