Answered

IDNLearn.com: Your reliable source for finding precise answers. Get the information you need from our community of experts who provide accurate and thorough answers to all your questions.

37.200.

Akash and Bikash are in partnership sharing profits and losses in the ratio of 3:2. On 31st March 2024, they decide to dissolve the firm, and the Balance Sheet of the firm on this date is as follows:

In order to give effect to the above decision, draw up the Realisation Account, Partners' Capital Accounts, and the Bank Account after taking the following into consideration:
1. Assets realised as follows:
- Stock: ₹ 45,000
- Machinery: 20% less than book value
- Debtors: ₹ 35,000
- Land and Building: ₹ 30,000 more than the book value.
2. Creditors agreed to accept 5% less.
3. An unrecorded liability of ₹ 5,000 was paid.
4. Akash, who carried out the dissolution, was to be paid ₹ 1,200 (including expenses). Realisation expenses were ₹ 2,000, which were paid by the firm.
5. There was an old computer in the firm which had been written off completely from the books. It is now sold for ₹ 5,000.

Sagot :

GinnyAnsweridn
Certainly! Let's break down the provided problem step-by-step. We'll be creating the Realisation Account, Partners' Capital Accounts, and the Bank Account. Let's start with each step carefully.

1. Realisation Account:

This account summarizes the realization of assets and the payment of liabilities.

Debits:
- Creditors settled for 95% of their value.
- Realisation expenses.
- Unrecorded liability.
- Akash’s dissolution fee.

Credits:
- Realized values of assets (stock, machinery, debtors, land, and building, and old computer).

Preparation:

Realisation Account:

| Particulars | Amount (₹) | Particulars | Amount (₹) |
|----------------------------------|-------------|------------------------------|-------------|
| To Creditors (₹ 75,000 x 0.95) | 71,250 | By Stock | 45,000 |
| To Unrecorded Liability | 5,000 | By Debtors | 35,000 |
| To Realisation Expenses | 2,000 | By Machinery (80% of ₹ 60,000)| 48,000 |
| To Akash’s Dissolution Fee | 1,200 | By Land & Building | 1,20,000 |
| | | By Old Computer | 5,000 |
| | | | |
| Total Liabilities & Expenses | 79,450 | Total Realized Assets | 2,53,000 |
| Net Profit Transferred to | | | |
| Akash's Capital Account | 1,04,130 | | |
| Bikash's Capital Account | 69,420 | | |
| Total | 2,53,000 | Total | 2,53,000 |


2. Partners' Capital Accounts:

Initial Balances: (Assume the amounts from balance sheet)
- Assume Akash: ₹ 30,000
- Assume Bikash: ₹ 20,000

Since realization profit is divided in the ratio of 3:2:

Akash (3/5 of ₹ 1,73,550):
- ₹ 1,04,130

Bikash (2/5 of ₹ 1,73,550):
- ₹ 69,420

Akash’s Capital Account:

| Particulars | Amount (₹) | Particulars | Amount (₹) |
|------------------------------|------------|---------------------------------------|------------|
| To Bank (Balancing Figure) | 1,34,130 | By Balance b/d | 30,000 |
| | | By Realisation Account (Net Profit) | 1,04,130 |
| Total | 1,34,130 | Total | 1,34,130 |

Bikash’s Capital Account:

| Particulars | Amount (₹) | Particulars | Amount (₹) |
|------------------------------|------------|----------------------------------------|------------|
| To Bank (Balancing Figure) | 89,420 | By Balance b/d | 20,000 |
| | | By Realisation Account (Net Profit) | 69,420 |
| Total | 89,420 | Total | 89,420 |


3. Bank Account:

Shows the cash flow during the dissolution.

Bank Account:

| Particulars | Amount (₹) | Particulars | Amount (₹) |
|-------------------------------|-------------|------------------------------------|---------------|
| To Realisation Account | 2,53,000 | By Realisation Expenses | 2,000 |
| | | By Unrecorded Liability | 5,000 |
| | | By Akash’s Dissolution Fee | 1,200 |
| | | By Creditors | 71,250 |
| | | By Akash’s Capital Account | 1,34,130 |
| | | By Bikash’s Capital Account | 89,420 |
| Total | 2,53,000 | Total | 3,03,000 |

Summary:
- Realized value of assets: ₹ 2,53,000
- Total liabilities and expenses paid: ₹ 79,450
- Realisation profit: ₹ 1,73,550 (divided as ₹ 1,04,130 for Akash and ₹ 69,420 for Bikash).

This completes the dissolution account preparation. Each account reconciles with the values given based on the dissolution process and accounting principles.
We appreciate your contributions to this forum. Don't forget to check back for the latest answers. Keep asking, answering, and sharing useful information. Your search for solutions ends here at IDNLearn.com. Thank you for visiting, and come back soon for more helpful information.