Page 209 - DEBKVOL-1

8.34 Double Entry Book Keeping—CBSE XII

Close the firm’s books of accounts by preparing Realisation Account, Partners’ Capital Accounts and
Bank Account.
[Ans.: Gain (Profit) on Realisation—` 2,100; Total of Bank A/c—` 29,600; Amount payable to
Dipali—` 15,860; Rajashri—` 11,440.]

4. Following was the Balance Sheet of Deepak and Neeru sharing profits and losses in the ratio of 3 : 2 as at
31st March, 2018:
Liabilities ` Assets `
Creditors 38,000 Cash 11,500
Mrs. Deepak’s Loan 10,000 Stock 6,000
Neeru’s Loan 15,000 Debtors 20,000
Reserve Fund 2,500 Less: Provision for Doubtful Debts 1,000 19,000
Deepak’s Capital 10,000 Furniture 4,000
Neeru’s Capital 8,000 18,000 Plant 28,000
Investments 10,000
Profit and Loss A/c 5,000
83,500 83,500

The firm was dissolved on 31st March, 2018 and the following was the result:
(a) Deepak took Investments at ` 8,000 and agreed to pay the loan of his wife.
(b) The assets realised as follows:
Stock ` 1,000 less; Debtors ` 18,500; Furniture ` 500 more; Plant ` 3,000 less.
(c) Expenses of realisation were ` 600.
(d) Creditors were paid off less 2½% discount.
Show Ledger Accounts to close the books of the firm.
[Ans.: Loss on Realisation—` 5,650; Deepak receives—` 7,110;
Neeru receives—` 4,740; Total of Cash A/c—` 64,500.]
5. Amar, Akbar and Antony were partners in a firm sharing profits and losses in the ratio of 4 : 4 : 2. Their Balance
Sheet as at 31st March, 2018 was:
Liabilities ` Assets `
Sundry Creditors 9,000 Land 8,000
Amar’s Loan 7,000 Plant 17,000
General Reserve 5,000 Less: Depreciation 1,000 16,000
Capital A/cs: Loose Tools 3,000
Amar 24,000 Stock 20,000
Akbar 20,000 Sundry Debtors 30,000
Antony 15,000 59,000 Less: Provision for Doubtful Debts 2,000 28,000
Cash at Bank 5,000
80,000 80,000

The partners decided to dissolve the firm with effect from 31st March, 2018. In order to give effect to this
decision, draw up a Realisation Account, Partners’ Capital Accounts and the Bank Account, after taking into
consideration the following:
(a) Amar agreed to take over part of the business for which he agreed to pay ` 10,000 for Goodwill, which
had not been previously valued.