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8.12 Double Entry Book Keeping—CBSE XII

Dr. PARTNERS’ CAPITAL ACCOUNTS Cr.
Particulars A B C Particulars A B C
` ` ` ` ` `

To Realisation A/c 55,500 37,000 18,500 By Balance b/d 80,000 50,000 30,000
—Loss By Realisation A/c 5,500 ... ...
To Profit and Loss A/c 27,000 18,000 9,000 —Commission
To Cash A/c 4,100* ... ... By Cash A/c 1,100 5,000 ...
To Cash A/c ... ... 2,500 —Cash brought in
—Final Payment
86,600 55,000 30,000 86,600 55,000 30,000

*Actual amount spent by A (to realise the assets) is treated as his drawings.

Dr. CASH ACCOUNT Cr.
Particulars ` Particulars `

To Balance b/d 22,500 By Realisation A/c—Liabilities Paid 47,000
To Realisation A/c—Assets Realised 1,10,000 By Realisation A/c (` 65,000 + ` 20,000) 85,000
To A’s Capital A/c—Cash brought in 1,100 By A’s Capital A/c—Realisation Expenses 4,100
To B’s Capital A/c—Cash brought in 5,000 By C’s Capital A/c—Final Payment 2,500
1,38,600 1,38,600

Illustration 9.

X and Y were partners in a firm sharing profits and losses in the ratio of 3 : 2.
On 31st March, 2018, they decide to dissolve the partnership firm, when the Balance Sheet was
as under:
Liabilities ` Assets `

Trade Creditors 1,60,000 Bank 72,000
Bills Payable 40,000 Stock 1,60,000
Loan from X 10,000 Debtors 1,32,000
Loan from Mrs. X 30,000 Less: Provisions 12,000 1,20,000
Employees’ Provident Fund 26,000 Plant and Machinery 60,000
Workmen Compensation Reserve 4,000 Land and Building 76,000
General Reserve 40,000 Investment (Face Value ` 5,000) 20,000
Profit and Loss A/c 30,000 Goodwill 30,000
X’s Capital A/c 1,32,000 Prepaid Insurance 2,000
Y’s Capital A/c 88,000 2,20,000 Deferred Revenue Advertisement Expenses 20,000
5,60,000 5,60,000

Note: There is a bill for ` 5,000 under discount. The bill was received from W.
Give necessary Journal entries to record the transfer of Assets and Liabilities to
Realisation Account.