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Chapter 8 Dissolution of a Partnership Firm 8.23
.
Additional Information:
(i) Ajit was to take over furniture at ` 1,600 and debtors amounting to ` 40,000 at ` 34,200;
the Creditors of ` 12,000 were to be paid by him at this figure.
(ii) Brijesh was to take over all the stock at ` 14,000 and some of the Other Sundry Assets
at ` 14,400 (being 10% less than book value).
(iii) Chandni took over remaining Other Sundry Assets at book value.
(iv) The expenses of dissolution were ` 540. The remaining debtors were sold to a debt
collecting agency for 50% of book value.
Prepare Realisation Account, Partners’ Capital Accounts and Cash Account to close the books
of the firm. (CBSE 2013 Set I, II, III Foreign, Modified)

Solution:
Dr. REALISATION ACCOUNT Cr.
Particulars ` Particulars `
To Assets: By Liabilities:
Debtors 48,400 Provision for Doubtful Debts 2,400
Stock 15,600 Creditors 12,000
Furniture 2,000 Loan 3,000 17,400
Other Sundry Assets 34,000 1,00,000 By Ajit’s Capital A/c—Assets:
To Ajit’s Capital A/c—Creditors 12,000 Furniture 1,600
To Cash A/c—Loan 3,000 Debtors 34,200 35,800
To Cash A/c—Exp. 540 By Brijesh’s Capital A/c—Assets:
Stock 14,000
Sundry Assets 14,400 28,400
By Chandni’s Capital A/c 18,000
[` 34,000 – (` 14,400 × 100/90)]
By Cash A/c—Debtors 4,200
[50/100 (` 48,400 – ` 40,000)]
By Loss transferred to:
Ajit’s Capital A/c 7,044
Brijesh’s Capital A/c 2,348
Chandni’s Capital A/c 2,348 11,740
1,15,540 1,15,540

Dr. PARTNERS’ CAPITAL ACCOUNTS Cr.
Particulars Ajit Brijesh Chandni Particulars Ajit Brijesh Chandni
` ` ` ` ` `
To Realisation A/c—Loss 7,044 2,348 2,348 By Balance b/d 55,000 20,000 14,000
To Realisation A/c 35,800 28,400 18,000 By Realisation A/c 12,000 ... ...
To Cash A/c 24,156 ... ... —Creditors
(Balancing Figure) By Cash A/c ... 10,748 6,348
(Balancing Figure)
67,000 30,748 20,348 67,000 30,748 20,348