Page 444 - AAAXII

Model Test Papers M.425

Cash A/c ...Dr. 6,00,000
To Realisation A/c 6,00,000
(Being the Land and Building realised cash ` 6,00,000)
Cash A/c ...Dr. 1,60,000
To Realisation A/c 1,60,000
(Being the investment sold to P)

Realisation A/c ...Dr. 1,60,000
To S’s Capital A/c 32,000
To P’s Capital A/c 1,28,000
(Being the gain transferred to Partners’ Capital Accounts)
P’s Loan A/c ...Dr. 1,50,000
To Cash A/c 1,50,000
(Being the P’s loan paid)
S’s Capital A/c ...Dr. 1,32,000
P’s Capital A/c ...Dr. 5,28,000
To Cash A/c 6,60,000
(Being the final payment made to partners (WN))
Working Note:
Dr. PARTNERS’ CAPITAL ACCOUNTS Cr.
Particulars S (`) P (`) Particulars S (`) P (`)

To Cash A/c (Final Payment) 1,32,000 5,28,000 By Balance b/d 1,00,000 4,00,000
(Balancing Figure) By Realisation A/c (Gain) 32,000 1,28,000
1,32,000 5,28,000 1,32,000 5,28,000

Or
Dr. REALISATION ACCOUNT Cr.
Particulars ` Particulars `
To Sundry Assets—Transfer: By Provision for Doubtful Debts 1,200
Other Sundry Assets 1,17,000 By Loan 11,500
Furniture 11,000 By Creditors 16,000
Debtors 1,24,200 By Z’s Capital A/c:
Stock 17,800 2,70,000 Furniture 8,000
To Z’s Capital A/c (Creditors taken over) 16,000 Debtors (Book Value ` 1,20,000) 1,17,200 1,25,200
To Y’s Capital A/c (` 11,500 + ` 2,300) 13,800 By X’s Capital A/c:
(Loan along with Interest) Stock 17,000
To Cash A/c (Realisation Expenses) 2,700 Other Sundry Assets 72,000 89,000
(Book Value ` 80,000)
By Y’s Capital A/c 29,600
[80% (` 1,17,000 – ` 80,000)]
By Cash A/c (Remaining Debtors) 2,100
(50% of ` 4,200)
By Loss on Realisation transferred to:
X’s Capital A/c 11,160
Y’s Capital A/c 11,160
Z’s Capital A/c 5,580 27,900
3,02,500 3,02,500