1,20,000 1,20,000 The firm was dissolved on the above date and the following was decided— X agreed to pay off his loan brother’s Debtors of Rs 5000 proved bad. Other assets realized as follows—Investments 20% less, and Goodwill at 60%. One of the creditors for Rs 5000 was paid only Rs 3000. Building was auctioned for Rs 30,000 and the commission amounted to Rs 1000. auctioneer’s Y took over part of the stock at Rs 4000(being 20% less than the book value)Balance stock realized 50% Realisation expenses amounted to Rs 2000. Prepare Realisation account, Partners capital accounts and Bank account. Realisation account Particulars Amt(Rs) Particulars Amt(Rs) Sundry Assets Sundry Liabilities Debtors 17,000 Creditors 8000 – Stock 15,000 Bank overdraft - 6000 Investments 25,000 Brothers loan- 8000 X’s Building 25,000 92,000 Investment Fluctuation fund – 5,000 Goodwill 10,000 29000 Provision for doubtful debts - 2000 Capital(Brothers 8000 Bank a/c (Assets realized) 72,000 X’s loan) Bank(Liabilities paid Capital(stock) 4000 Y’s off) Loss transferred to capitals Creditors- 6000 X- 7200 12000 Bank overdraft 6000 Y- 1800 9000 Bank(Realisation expenses) 2000 1,14000 1,14,000 Capital Accounts Partner’s Particulars X Y Particulars X Y 8,000 2,000 Balance b/d 50,000 40,000 Profit & Loss a/c Realisation a/c 4,000 Realisation a/c 8,000 Realisation a/c(loss) 7,200 1,800
1,20,000 1,20,000 The firm was dissolved on the above date and the following was decided— X agreed to pay off his brother’s loan Debtors of Rs 5000 proved bad. Other assets realized as follows—Investments 20% less, and Goodwill at 60%. One of the creditors for Rs 5000 was paid only Rs 3000. Building was auctioned for Rs 30,000 and the auctioneer’s commission amounted to Rs 1000. Y took over part of the stock at Rs 4000(being 20% less than the book value)Balance stock realized 50% Realisation expenses amounted to Rs 2000. Prepare Realisation account, Partners capital accounts and Bank account. Realisation account Particulars Amt(Rs) Particulars Amt(Rs) Sundry Assets Debtors 17,000 Stock 15,000 Investments 25,000 Building 25,000 Goodwill 10,000 92,000 Sundry Liabilities Creditors – 8000 Bank overdraft - 6000 X’s Brothers loan- 8000 Investment Fluctuation fund – 5,000 Provision for doubtful debts - 2000 29000 X’s Capital(Brothers loan) 8000 Bank a/c (Assets realized) 72,000 Bank(Liabilities paid off) Creditors- 6000 Bank overdraft 6000 12000 Y’s Capital(stock) Loss transferred to capitals X- 7200 Y- 1800 4000 9000 Bank(Realisation expenses) 2000 1,14000 1,14,000 Partner’s Capital Accounts Particulars X Y Particulars X Y Profit & Loss a/c 8,000 2,000 Balance b/d 50,000 40,000 Realisation a/c 4,000 Realisation a/c 8,000 Realisation a/c(loss) 7,200 1,800