sanjay , tarun and vineet shared profit in the ratio 3:2:1. on december 31,2006 there balance sheet was as follows:
liabilities:
sanjay capital 1,00,000 , tarun capital 1,00,000 , vineet capital 70,000 , creditors 80,000 , bills payable 30,000
assets:
plant 90,000 , debtors 60,000 , furniture 32,000 , stock 60,000 , investment 70,000 , bills receivable 36,000 , cash in hand 32,000
on this date the firm was dissolved .. sanjay was appointed to realise the assets . sanjay was to receive 6% commission on the sale of assets and was bear all expenses of realisation .
sanjay realised the assets as fllow : plant rs. 72,000 , debtors rs. 54,000 , furniture rs. 18,000 , stock rs. 90% of the book value , investment rs 76,000 and bills receivable rs. 31,000 . expenses of the realisation amounted to rs. 4,500 .
prepare realisation account, capital accounts and cash accounts
Realisation Account | |||||||
| Cr. |
| |||||
Particulars | Amount Rs | Particulars | Amount Rs | ||||
Plant | 90,000 | Creditors | 80,000 | ||||
Sundry debtors | 60,000 | Bill payables | 30,000 | ||||
Furniture | 32,000 | Bank A/c |
| ||||
Stock | 60,000 | -Plant 72,000 |
| ||||
Investment | 70,000 | -Debtors 54,000 |
| ||||
Bill receivables |
| 36,000 | -Furniture 18,000 |
| |||
Bank A/c: |
|
| -Stock 54,000 |
|
| ||
Creditors Bill payable | 80,000 30,000 | 1,10,000 | -Investment 76,000 |
|
| ||
Sanjay’s capital A/c | 18,300 | -Bill receivable 31000 |
| 3,05,000 | |||
(commission) |
| Loss transferred to capital A/c: |
| ||||
|
| Sanjay: 30,650 |
|
| |||
|
| Tarun : 20,433 |
|
| |||
|
| Vineet : 10,217 |
| 61,300 | |||
| 4,76,300 |
| 4,76,300 | ||||
|
|
|
|
Bank Account | |||||
Dr. | . | Cr. | |||
Particulars | Amount Rs | Particulars | Amount Rs | ||
Balance b/d | 32,000 | Realisation A/c |
| ||
Realisation A/c --Investments 76,000 |
| --Creditors 80,000 --Bill payable 30,000 |
1,10,000 | ||
--Debtors 54,000 --Plant 72,000 --Furniture 18,000 --Stock 54,000 |
3,05,000 | Sanjay’s Capital A/c Tarun’s Capital A/c Vineet’s Capital A/c | 87,650 79,567 59,783 | ||
--Bill Receivable 31,000
| 3,37,000 |
| 3,37,000 | ||
|
|
|
|
Partners’ Capital Accounts | |||||||||
Dr. |
| Cr. | |||||||
Particulars | Sanjay | Tarun | Vineet | Particulars | Sanjay | Tarun | Vineet | ||
Realisation A/c | 30,650 | 20,433 | 10,217 | Balance b/d | 1,00,000 | 1,00,000 | 70,000 | ||
(loss distributed in ratio of 3:2:1) |
|
|
| Realisation A/c (commission) | 18,300 | -- | -- | ||
Bank A/c | 87,650 | 79,567 | 59,783 |
|
|
|
| ||
(balancing figure)
|
|
|
|
|
|
|
| ||
1,18,300 | 1,00,000 | 70,000 | 1,18,300 | 1,00,000 | 70,000 |
1.Calculation of amount of commission :
sum total of assets realised = Rs. 3,05,000
commission = 3,05,000*6/100 =Rs. 18,300
2. Since, Sanjay will bear the amount of expenses, then it is assumed that he had paid them so, no entry is passed accordingly.