Page 201 - DEBKVOL-1

8.26 Double Entry Book Keeping—CBSE XII
Illustration 21 (Value of Assets not Given).
Ram, Mohan and Sohan are partners sharing their profits and losses in the ratio of 5 : 3 : 2. On
31st March, 2018, Ram’s Capital and Mohan’s Capital were ` 90,000 and ` 60,000 respectively.
But Sohan owed ` 15,000 to the firm. The Creditors were of ` 60,000. The assets realised ` 1,50,000.

Prepare Realisation Account, Partners’ Capital Accounts and Bank Account.

Solution:
Dr. REALISATION ACCOUNT Cr.
Particulars ` Particulars `
To Sundry Assets A/c (WN) 1,95,000 By Creditors 60,000
To Bank A/c—Creditors 60,000 By Bank A/c—Assets Realised 1,50,000
By Loss transferred to:
Ram’s Capital A/c 22,500
Mohan’s Capital A/c 13,500
Sohan’s Capital A/c 9,000 45,000
2,55,000 2,55,000

Dr. PARTNERS’ CAPITAL ACCOUNTS Cr.
Particulars Ram Mohan Sohan Particulars Ram Mohan Sohan
` ` ` ` ` `

To Balance b/d ... ... 15,000 By Balance b/d 90,000 60,000 ...
To Realisation A/c (Loss) 22,500 13,500 9,000 By Bank A/c ... ... 24,000
To Bank A/c (Amt. Paid) 67,500 46,500 ... (Amount Received)
90,000 60,000 24,000 90,000 60,000 24,000

Dr. BANK ACCOUNT Cr.
Particulars ` Particulars `
To Realisation A/c—Assets Realised 1,50,000 By Realisation A/c—Creditors 60,000
To Sohan’s Capital A/c—Amount Received 24,000 By Ram’s Capital A/c—Final Payment 67,500
By Mohan’s Capital A/c—Final Payment 46,500
1,74,000 1,74,000

Working Note: Calculation of Value of Sundry Assets:

MEMORANDUM BALANCE SHEET as at 31st March, 2018
Liabilities ` Assets `
Creditors 60,000 Sohan’s Capital 15,000
Capital A/cs: Sundry Assets (Balancing Figure) 1,95,000
Ram 90,000
Mohan 60,000 1,50,000
2,10,000 2,10,000