A, B and C were partners sharing profits in the ratio of 3 : 1 : 1. Their Balance-Sheet as on March 31st2009, the date on which they dissolve their firm, was as follows: Liabilities Amount Rs Assets Amount Rs Capitals:Sundry Assets17,000A27,500Stock7,800B10,000Debtors24,200C7,00044,500Less: Provision for doubtful debts(1,200)23,000Loan1,500Bills Receivable1,000Creditors6,000Cash3,20052,00052,000It was agreed that:(a) A to take over Bills Receivable at Rs 800, debtors amounting to Rs 20,000 at 17,200 and the creditors of Rs 6,000 were to be paid by him at this figure.(b) B is to take over all stock for Rs 7,000 and some sundry assets at Rs 7,200 (being 10% less than the book value)(c) C to take over remaining sundry assets at 90% of the book value and assume the responsibility of discharge of loan together with accrued interest of Rs 300. (d) The expenses of realization were Rs 270The remaining debtors were sold to a debt collecting agency at 50% of the book value. Prepare Realisation A/c, Partners Capital A/c and Cash A/cplease tell me about adjustment no. 3?

Dear Student, ​this is to be solved as follows:
90% value of the Sundry Assets (taken by B) = Rs 7,200
100% value of Sundry Assets (taken by B) = Rs 7,200*90/100 = Rs 8,000
Hence, Sundry Assets of Rs 8,000 were taken over by B at 10% less than the Book Value i.e. Rs 7,200.

C took over the remaining Sundry Assets of Rs 9,000 (Rs 17,000-Rs 8,000) at 90% of the book value i.e. Rs 8,100 (Rs 9,000*90%) and took over the responsibility to discharge the Loan (Rs 1,500) with interest of Rs 300. Therefore, C's Capital should be debited with Rs 8,100 and credited with Rs 1,800 (Rs 1,500+Rs 300)
The Journal Entry for it as follows:
 Journal Entry Date Particulars L.F. Debit Amount Rs Credit Amount Rs C’s Capital A/c Dr. 8,100 To Realisation A/c 8,100 (Assets taken over by c at 90% of book Value) Realisation A/c Dr. 1,800 To C’s Capital A/c 1,800 (Loan of Rs 1,500 with interest of Rs 300 is paid by C)

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