Page 200 - DEBKVOL-1

Chapter 8 Dissolution of a Partnership Firm 8.25
.
Solution: Ledger Accounts

Dr. REALISATION ACCOUNT Cr.
Particulars ` Particulars `
To Sundry Assets—Transfer: By Creditors 44,000
Leasehold Property 40,000 By Bank Overdraft 30,000
Machinery 35,000 By X’s Capital A/c 60,000
Furniture 7,000 (Leasehold Property, Machinery
Investments 10,000 and Furniture)
Stock 35,000 By Y’s Capital A/c 40,000
Debtors 24,000 (Leasehold Property, Machinery
Commission Receivable 3,000 1,54,000 and Furniture)
To X’s Capital A/c (Creditors) 44,000 By Bank A/c (Commission) 3,000
To Y’s Capital A/c (Bank Overdraft) 30,000 By X’s Capital A/c (Assets) (Note) 35,000
To Bank A/c (Realisation Expenses) 3,000 By Y’s Capital A/c (Assets) (Note) 35,000
To Gain (Profit) transferred to:
X’s Capital A/c (3/4) 12,000
Y’s Capital A/c (1/4) 4,000 16,000
2,47,000 2,47,000

Dr. PARTNERS’ CAPITAL ACCOUNTS Cr.
Particulars X Y Particulars X Y
` ` ` `
To Realisation A/c—Assets 60,000 40,000 By Balance b/d 54,000 27,000
To Realisation A/c—Assets 35,000 35,000 By Realisation A/c:
To Bank A/c (Balancing Figure) 15,000 ... Creditors 44,000 ...
Bank Overdraft ... 30,000
By Realisation A/c (Gain (Profit)) 12,000 4,000
By Bank A/c (Balancing Figure) ... 14,000
1,10,000 75,000 1,10,000 75,000

Dr. BANK ACCOUNT Cr.
Particulars ` Particulars `
To Balance b/d 1,000 By Realisation A/c (Expenses) 3,000
To Realisation A/c (Commission) 3,000 By X’s Capital A/c—Final Payment 15,000
To Y’s Capital A/c—Cash brought in 14,000
18,000 18,000

Note: Assets valuation has been computed for equal division between X and Y as follows:
Stock ` 28,000 (i.e., ` 35,000 × 80/100) + Investments ` 18,000 + Debtors ` 24,000 = ` 70,000.
Divided between X and Y equally:
X = ` 70,000 × 1/2 = ` 35,000; and Y = ` 70,000 × 1/2 = ` 35,000.