A and B were partners in a firm sharing profits in the ratio of 3 : 2.

1.	A and B were partners in a firm sharing profits in the ratio of 3 : 2. On 31.3.2011 the balance sheet of the firm was as follows: BALANCE SHEET OF A & B as at 31.3.2011 Capital and LiabilitiesAmount (Rs.)AssetsAmount (Rs.)Capital:Building2,40,000A 3,00,000Furniture1,75,000B 2,00,000––––––––––5,00,000Debtors80,000Sundry Creditors97,000Stock75,000A's Loan20,000Cash47,000¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯6,17,000––––––––––¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯6,17,000–––––––––– The firm was dissolved on 1.4.2011 and the assets and liabilities were settled as following: (i) Building was taken over by the creditors as their full and final payment; (ii) A accepted an unrecorded asset of Rs. 25,000 in full settlement of his loan. (iii) Furniture was taken over by B for cash payment at 5% less than the book value; (iv) Debtors were collected by a debt collection agency at a cost of Rs 5,000; (v) Stock realised Rs. 70,500. (vi) B agreed to bear all realisation expenses. For this service B is to be allowed Rs. 500. Actual expenses on realisation amounted to Rs. 1,000. Prepare realisation account an partner's capital account
Answer» A and B were partners in a firm sharing profits in the ratio of 3 : 2. On 31.3.2011 the balance sheet of the firm was as follows: BALANCE SHEET OF A & B as at 31.3.2011 $\begin{matrix} Capital and Liabilities & Amount (Rs.) & Assets & Amount (Rs.) Capital: & Building & 2, 40, 000 A 3, 00, 000 & Furniture & 1, 75, 000 B 2, 00, 000 - -------- - & 5, 00, 000 & Debtors & 80, 000 Sundry Creditors & 97, 000 & Stock & 75, 000 A's Loan & 20, 000 & Cash & 47, 000 ¯ ¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯ ¯ 6, 17, 000 - -------- - & ¯ ¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯ ¯ 6, 17, 000 - -------- - \end{matrix}$ The firm was dissolved on 1.4.2011 and the assets and liabilities were settled as following: (i) Building was taken over by the creditors as their full and final payment; (ii) A accepted an unrecorded asset of Rs. 25,000 in full settlement of his loan. (iii) Furniture was taken over by B for cash payment at 5% less than the book value; (iv) Debtors were collected by a debt collection agency at a cost of Rs 5,000; (v) Stock realised Rs. 70,500. (vi) B agreed to bear all realisation expenses. For this service B is to be allowed Rs. 500. Actual expenses on realisation amounted to Rs. 1,000. Prepare realisation account an partner's capital account

A and B were partners in a firm sharing profits in the ratio of 3 : 2. On 31.3.2011 the balance sheet of the firm was as follows: BALANCE SHEET OF A & B as at 31.3.2011 Capital and LiabilitiesAmount (Rs.)AssetsAmount (Rs.)Capital:Building2,40,000A 3,00,000Furniture1,75,000B 2,00,000––––––––––5,00,000Debtors80,000Sundry Creditors97,000Stock75,000A's Loan20,000Cash47,000¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯6,17,000––––––––––¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯6,17,000–––––––––– The firm was dissolved on 1.4.2011 and the assets and liabilities were settled as following: (i) Building was taken over by the creditors as their full and final payment; (ii) A accepted an unrecorded asset of Rs. 25,000 in full settlement of his loan. (iii) Furniture was taken over by B for cash payment at 5% less than the book value; (iv) Debtors were collected by a debt collection agency at a cost of Rs 5,000; (v) Stock realised Rs. 70,500. (vi) B agreed to bear all realisation expenses. For this service B is to be allowed Rs. 500. Actual expenses on realisation amounted to Rs. 1,000. Prepare realisation account an partner's capital account

Answer»

A and B were partners in a firm sharing profits in the ratio of 3 : 2. On 31.3.2011 the balance sheet of the firm was as follows:

BALANCE SHEET OF A & B
as at 31.3.2011
$\begin{matrix} Capital and Liabilities & Amount (Rs.) & Assets & Amount (Rs.) Capital: & Building & 2, 40, 000 A 3, 00, 000 & Furniture & 1, 75, 000 B 2, 00, 000 - -------- - & 5, 00, 000 & Debtors & 80, 000 Sundry Creditors & 97, 000 & Stock & 75, 000 A's Loan & 20, 000 & Cash & 47, 000 ¯ ¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯ ¯ 6, 17, 000 - -------- - & ¯ ¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯ ¯ 6, 17, 000 - -------- - \end{matrix}$

The firm was dissolved on 1.4.2011 and the assets and liabilities were settled as following:

(i) Building was taken over by the creditors as their full and final payment;

(ii) A accepted an unrecorded asset of Rs. 25,000 in full settlement of his loan.

(iii) Furniture was taken over by B for cash payment at 5% less than the book value;

(iv) Debtors were collected by a debt collection agency at a cost of Rs 5,000;

(v) Stock realised Rs. 70,500.

(vi) B agreed to bear all realisation expenses. For this service B is to be allowed Rs. 500. Actual expenses on realisation amounted to Rs. 1,000.

Prepare realisation account an partner's capital account

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