Following is the balance sheet of ramji and panna LIABILITIES Ramji Capital 16000 Panna capital 10000 Reserve 3600 Creditors 5400 - Accountancy - Dissolution of Partnership Firm

Question

Following is the balance sheet of ramji and panna
LIABILITIES
Ramji Capital 16000 Panna capital 10000 Reserve 3600 Creditors 5400
b/p 2600
ASSETS
Goodwill 4000 Machinery 6000 Plant 12800
Debtor 10800
Less provision 800 = 10000
Bank 4800
They decided to dissolve the firm
Asset realised as follow
Machinery 10% less than book value plant 12000 godwill 2520
Ramji is to take over debtor amounting to 6800 at 6000,remaining
debtor were realised for 90% of the book value
One bill of 600 under discount having been dishonoured had to be
taken up by them(explain clearly in wn)
The bp of 2600 to be assumed by panna at that figure
Creditors are paid off at discount of 10% the liquidation expenses
amounted to 400
Prepare realisation partner capital and cash a/c

Manisha Arora · Accepted Answer

Priya the solution of your query is here

Realisation Account

Dr

Cr

Particulars
Amount
Rs

Assets

Liabilities

Goodwill
4,000

Creditors
5,400

Machinery
6,000

Bills Payable
2,600

Plant
12,800

Provisions
800
8,800

Debtors
10,800
33,600

Bank A/c

Machinery
5,400

Creditors
4,860

Plant
12,000

Expenses
400

Goodwill
2,520

Unrecorded Bill
600
5,860
Debtors
3,600
23,520

Panna’s Capital A/c
2,600
Ramji’s Capital A/c
6,000

Loss transferred to:

Ramji’s Capital A/c
1,870

Panna’s Capital A/c
1,870
3,740

38,320

Partners’
Capital Account

Dr

Cr

Particulars
Ramji
Paana
Particulars
Ramji
Paana

Realisation A/c
6,000

Balance b/d
16,000
10,000

Revaluation A/c
(Loss)
1,870
1,870
General Reserve
1,800
1,800

Realisation A/c

2,600

Cash A/c
9930
12,530

17,800
14,400

Bank
Account

Dr

Cr

Particulars
Amount
Rs
Particulars
Amount
Rs

Balance b/d
4,800
Realisation A/c
5,860

Realisation A/c
23,520
Ramji’s Capital A/c
9,930

Panna’s Capital A/c
12,530

28,320

Note: 'Bill of 600 under discount having been discounted has to be
taken up by the them', represents the unrecorded liability for the
firm It implies that a bill payable has been discounted by its
drawer and to be paid now

Realisation Account
Dr.					Cr.
Particulars		Amount Rs	Particulars			Amount Rs
Assets			Liabilities
Goodwill	4,000		Creditors	5,400
Machinery	6,000		Bills Payable	2,600
Plant	12,800		Provisions	800		8,800
Debtors	10,800	33,600
			Bank A/c
Bank A/c			Machinery	5,400
Creditors	4,860		Plant	12,000
Expenses	400		Goodwill	2,520
Unrecorded Bill	600	5,860	Debtors	3,600		23,520
Panna’s Capital A/c		2,600	Ramji’s Capital A/c			6,000
			Loss transferred to:
			Ramji’s Capital A/c	1,870
			Panna’s Capital A/c	1,870		3,740
		38,320				38,320

Partners’ Capital Account
Dr.						Cr.
Particulars	Ramji	Paana	Particulars	Ramji	Paana
Realisation A/c	6,000		Balance b/d	16,000	10,000
Revaluation A/c (Loss)	1,870	1,870	General Reserve	1,800	1,800
			Realisation A/c		2,600
Cash A/c	9930	12,530
	17,800	14,400		17,800	14,400

Bank Account
Dr.				Cr.
Particulars	Amount Rs	Particulars	Amount Rs
Balance b/d	4,800	Realisation A/c	5,860
Realisation A/c	23,520	Ramji’s Capital A/c	9,930
		Panna’s Capital A/c	12,530
	28,320		28,320