Accountancy

X and Y were partners sharing profits and losses in the ratio of 3 : 2. They decided to dissolve the firm on 31st March, 2019. On that date, their Capitals were X − Rs. 40,000 and Y− Rs. 30,000. Creditors amounted to Rs. 24,000. Assets were realised for Rs. 88,500. Creditors of Rs. 16,000 were taken over by X at Rs. 14,000. Remaining Creditors were paid at Rs. 7,500. The cost of realisation came to Rs. 500. Prepare necessary accounts.

Solution

Continue ReadingX and Y were partners sharing profits and losses in the ratio of 3 : 2. They decided to dissolve the firm on 31st March, 2019. On that date, their Capitals were X − Rs. 40,000 and Y− Rs. 30,000. Creditors amounted to Rs. 24,000. Assets were realised for Rs. 88,500. Creditors of Rs. 16,000 were taken over by X at Rs. 14,000. Remaining Creditors were paid at Rs. 7,500. The cost of realisation came to Rs. 500. Prepare necessary accounts.

The partnership between A and B was dissolved on 31st March, 2019. On that date the respective credits to the capitals were A − Rs. 1,70,000 and B − Rs. 30,000. Rs. 20,000 were owed by B to the firm; Rs. 1,00,000 were owed by the firm to A and Rs. 2,00,000 were due to the Trade Creditors. Profits and losses were shared in the proportions of 2/3 to A, 1/3 to B. The assets represented by the above stated net liabilities realise Rs. 4,50,000 exclusives of Rs. 20,000 owed by B. The liabilities were settled at book figures. Prepare Realisation Account, Partners’ Capital Accounts and Cash Account showing the distribution to the partners.

Solution

Continue ReadingThe partnership between A and B was dissolved on 31st March, 2019. On that date the respective credits to the capitals were A − Rs. 1,70,000 and B − Rs. 30,000. Rs. 20,000 were owed by B to the firm; Rs. 1,00,000 were owed by the firm to A and Rs. 2,00,000 were due to the Trade Creditors. Profits and losses were shared in the proportions of 2/3 to A, 1/3 to B. The assets represented by the above stated net liabilities realise Rs. 4,50,000 exclusives of Rs. 20,000 owed by B. The liabilities were settled at book figures. Prepare Realisation Account, Partners’ Capital Accounts and Cash Account showing the distribution to the partners.

A, B and C started business on 1st April, 2018 with capitals of Rs. 1,00,000; Rs. 80,000 and Rs. 60,000 respectively sharing profits (losses) in the ratio of 4 : 3 : 3. For the year ended 31st March, 2019, the firm suffered a loss of Rs. 50,000. Each of the partners withdrew Rs. 10,000 during the year. On 31st March, 2019, the firm was dissolved, the Creditors  of the firm stood at Rs. 24,000 on that date and Cash in Hand was Rs. 4,000. The assets realised Rs. 3,00,000 and Creditors  were paid Rs. 23,500 in full settlement of their claims. Prepare Realisation Account and show your workings clearly.

Solution

Continue ReadingA, B and C started business on 1st April, 2018 with capitals of Rs. 1,00,000; Rs. 80,000 and Rs. 60,000 respectively sharing profits (losses) in the ratio of 4 : 3 : 3. For the year ended 31st March, 2019, the firm suffered a loss of Rs. 50,000. Each of the partners withdrew Rs. 10,000 during the year. On 31st March, 2019, the firm was dissolved, the Creditors  of the firm stood at Rs. 24,000 on that date and Cash in Hand was Rs. 4,000. The assets realised Rs. 3,00,000 and Creditors  were paid Rs. 23,500 in full settlement of their claims. Prepare Realisation Account and show your workings clearly.

A and B dissolve their partnership. Their position as at 31st March, 2019 was:

Particulars Rs.A's Capital   25,000B's Capital   15,000Sundry Creditors   20,000Cash in Hand and at Bank        750 The balance of A's Loan Account to the firm stood at Rs. 10,000. The realisation expenses amounted to Rs. 350. Stock realised Rs. 20,000…

Continue ReadingA and B dissolve their partnership. Their position as at 31st March, 2019 was:

A and B were partners sharing profits and losses as to 7/11th to A and 4/11th to B. They dissolved the partnership on 30th May, 2018. As on that date their capitals were: A Rs. 7,000 and B Rs. 4,000. There were also due on Loan A/c to A Rs. 4,500 and to B Rs. 750. The other liabilities amounted to Rs. 5,000. The assets proved to have been undervalued in the last Balance Sheet and actually realised Rs. 24,000. Prepare necessary accounts showing the final settlement between partners.

Solution

Continue ReadingA and B were partners sharing profits and losses as to 7/11th to A and 4/11th to B. They dissolved the partnership on 30th May, 2018. As on that date their capitals were: A Rs. 7,000 and B Rs. 4,000. There were also due on Loan A/c to A Rs. 4,500 and to B Rs. 750. The other liabilities amounted to Rs. 5,000. The assets proved to have been undervalued in the last Balance Sheet and actually realised Rs. 24,000. Prepare necessary accounts showing the final settlement between partners.

A, B and C were partners sharing profits in the ratio of 5 : 3 : 2. On 31st March, 2019, A’s Capital and B’s Capital were Rs. 30,000 and Rs. 20,000 respectively but C owed Rs. 5,000 to the firm. The liabilities were Rs. 20,000. The assets of the firm realised Rs. 50,000. Prepare Realisation Account, Partner’s Capital Accounts and Bank Account.

Solution

Continue ReadingA, B and C were partners sharing profits in the ratio of 5 : 3 : 2. On 31st March, 2019, A’s Capital and B’s Capital were Rs. 30,000 and Rs. 20,000 respectively but C owed Rs. 5,000 to the firm. The liabilities were Rs. 20,000. The assets of the firm realised Rs. 50,000. Prepare Realisation Account, Partner’s Capital Accounts and Bank Account.

There are two partners X and Y in a firm and their capitals are Rs. 50,000 and Rs. 40,000. The Creditors are Rs. 30,000. The assets of the firm realise Rs. 1,00,000. How much will X and Y receive?

Solution

Continue ReadingThere are two partners X and Y in a firm and their capitals are Rs. 50,000 and Rs. 40,000. The Creditors are Rs. 30,000. The assets of the firm realise Rs. 1,00,000. How much will X and Y receive?

Srijan, Raman and Manan were partners in a firm sharing profits and losses in the ratio of 2 : 2 : 1. On 31st, March, 2017 their Balance Sheet was as follows:

BALANCE SHEET OF SRIJAN, RAMAN AND MANAN as on 31st March, 2017 LiabilitiesAmount(Rs.)AssetsAmount(Rs.)Capitals: Capital: Manan10,000Srijan 2,00,000 Plant2,20,000Raman 1,50,0003,50,000Investments70,000Creditors 75,000Stock50,000Bills Payable 40,000Debtors60,000Outstanding Salary 35,000Bank10,000   Profit and Loss Account80,000  5,00,000 5,00,000 On the above date they decided to dissolve the firm.(a) Srijan was appointed…

Continue ReadingSrijan, Raman and Manan were partners in a firm sharing profits and losses in the ratio of 2 : 2 : 1. On 31st, March, 2017 their Balance Sheet was as follows:

A, B and C were in partnership sharing profits in the ratio of 7 : 2 : 1 and the Balance Sheet of the firm as at 31st March, 2019 was:

LiabilitiesAmount(Rs.)AssetsAmount(Rs.)Capital A/c : Building20,000 A 12,410Plant 31,220 B  8,650 Goodwill10,000 C 80,6201,01,680100 Shares in X Ltd. (At cost)2,400Creditors 11,2101,000 Shares in Y Ltd. (At cost)10,000Reserve for Depreciation on Plant 20,000Stock11,240   Debtors8,740   Bank1,210   Patents38,080  1,32,890   1,32,890 It was agreed to dissolve the partnership as on 31st March, 2019…

Continue ReadingA, B and C were in partnership sharing profits in the ratio of 7 : 2 : 1 and the Balance Sheet of the firm as at 31st March, 2019 was: