SK, MK and RK commenced business on 14 April, 2008 with fixed capitals

1.	SK, MK and RK commenced business on 14 April, 2008 with fixed capitals of Rs.2,00,000, Rs.1,60,000 and Rs.1,20,000 respectively. They agreed to share profits and losses in the ratio of 4:3:3. During the year 2008-09, they made a profit of Rs.1,12,000 before allowing interest on capital @10% p.a. The profit for the year 2009-10 was Rs.24,000 after allowing interest on capital. Each of the partners had drawn Rs.40,000 during this period 2008-10. The partners with mutual consent agreed to wind up the business operations. Creditors on that date were Rs.2,16,000. Assets realized Rs.8,40,000 and the expenses of realization were Rs.10,000. Prepare the Balance Sheet as on 31 March, 2010 and find out the profit or loss on realization.
Answer» ong>Answer: 2 (C): Classify the ACCOUNTS into Assets, Liabilities, Income, Expenditure and Capital (3M) (1) Goods A/C (2) Wages A/C (3) LOAN A/C (4) Debtors A/C (5) Creditors A/C (6) Furniture A/C (7) Bills RECEIVABLE A/C (8) Meena's Capital A/c (9) Drawing A/C (10) Discount A/C (11) Rent Received A/c (12) Building A/C CANA

SK, MK and RK commenced business on 14 April, 2008 with fixed capitals of Rs.2,00,000, Rs.1,60,000 and Rs.1,20,000 respectively. They agreed to share profits and losses in the ratio of 4:3:3. During the year 2008-09, they made a profit of Rs.1,12,000 before allowing interest on capital @10% p.a. The profit for the year 2009-10 was Rs.24,000 after allowing interest on capital. Each of the partners had drawn Rs.40,000 during this period 2008-10. The partners with mutual consent agreed to wind up the business operations. Creditors on that date were Rs.2,16,000. Assets realized Rs.8,40,000 and the expenses of realization were Rs.10,000. Prepare the Balance Sheet as on 31 March, 2010 and find out the profit or loss on realization.

Answer»

ong>Answer:

2 (C): Classify the ACCOUNTS into Assets, Liabilities, Income, Expenditure and Capital (3M)

(1) Goods A/C

(2) Wages A/C

(3) LOAN A/C

(4) Debtors A/C

(5) Creditors A/C

(6) Furniture A/C

(7) Bills RECEIVABLE A/C (8) Meena's Capital A/c (9) Drawing A/C

(10) Discount A/C

(11) Rent Received A/c (12) Building A/C

CANA