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Model Test Papers M.493

(c) Investments were taken by Y at ` 28,000.
(d) Sundry debtors included a bad debt for ` 1,000 and the amount was realised from
the good debtors subject to a cash discount of 10%.
(e) A creditor for ` 2,000 was untraceable and other creditors accepted payments
allowing 10% discount.
(f) X was allowed to retain the whole of the stock as his remuneration for services
rendered by him in the course of dissolution of the firm.
You are required to prepare:
(i) Realisation Account.
(ii) Partners’ Capital Accounts.
(iii) Bank Account.
Or
Following is the Balance Sheet of Ajit, Brijesh and Chandni as at 31st March, 2018
who share profits and losses in the ratio of 3 : 1 : 1:
Liabilities ` Assets `
Creditors 12,000 Cash at Bank 6,400
Loan 3,000 Debtors 48,400
General Reserve 10,000 Less: Provision for Doubtful Debts 2,400 46,000
Capital A/cs: Stock 15,600
Ajit 55,000 Furniture 2,000
Brijesh 20,000 Other Sundry Assets 34,000
Chandni 14,000 89,000 Profit and Loss Account 10,000
1,14,000 1,14,000

The firm was dissolved on 1st April, 2018 and following arrangements were carried out:
(i) Ajit was to take furniture at ` 1,600 and debtors amounting to ` 40,000 at
` 34,200. The remaining debtors were sold to a debt collecting agency for 50% of
book value. Creditors of ` 12,000 were to be paid by him at this amount.
(ii) Brijesh was to take 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 remaining other Sundry Assets at book value.
(iv) Expenses of dissolution was ` 540.
Prepare Realisation Account, Partners’ Capital Accounts and Bank Account to close
the books of the firm. (6)
15. X, Y and Z are partners sharing profits and losses equally. Their Balance Sheet as at
31st March, 2018 was as follows:
Liabilities ` Assets `
Bills Payable 40,000 Building 2,00,000
Sundry Creditors 1,00,000 Machinery 1,00,000
General Reserve 60,000 Patents and Copyrights 1,50,000
Capital A/cs: Closing Stock 1,25,000
X 2,50,000 Sundry Debtors 1,50,000
Y 2,00,000 Cash at Bank 75,000
Z 1,50,000 6,00,000
8,00,000 8,00,000