Rajeev, Sanjeev and Mahesh were partners in the firm Janki Traders sharing profit and losses in the ratio of 2 : 2 : 1. The following is the Balance Sheet as on 31st March 2022:Balance Sheet as on 31st March 2022LiabilitiesAmount (₹)AssetsAmount (₹)C…

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Q.3 Rajeev, Sanjeev and Mahesh were partners in the firm Janki Traders sharing profit and losses in the ratio of 2 : 2 : 1. The following is the Balance Sheet as on 31st March 2022: Balance Sheet as on 31st March 2022 LiabilitiesAmount (₹)AssetsAmount (₹) Capital Accounts:Machinery2,00,000 Rajeev2,40,000Investment96,000 Sanjeev80,000Debtors 2,20,000 Less: R.D.D. 12,0002,08,000 Mahesh80,000Stock80,000 General Reserve24,000Bank56,000 Creditors1,60,000 Bills Payable56,000 6,40,0006,40,000 On the above date the partners decided to dissolve the firm. Assets were realised as under: Machinery ₹ 1,80,000, Stock ₹ 72,000, Investment ₹ 84,000 and Debtors ₹ 1,80,000. Dissolution expenses were ₹ 12,000. Goodwill of the firm realised ₹ 96,000. Prepare necessary ledger accounts to close the books of the Partnership Firm. OR Ramesh, Dinesh and Mahesh were partners sharing profits and losses in the ratio of 5 : 2 : 3. Their balance sheet as on 31st March 2020 was as follows: Balance Sheet as on 31st March 2020 LiabilitiesAmount (₹)AssetsAmount (₹) Capital Accounts:Plant and Machinery42,000 Ramesh46,000Building50,000 Dinesh42,000Stock30,400 Mahesh27,600Debtors 26,800 Less: R.D.D. 80026,000 Creditors30,000Bank32,400 Bills Payable11,200 General Reserve24,000 1,80,8001,80,800 Dinesh retired from business on 1st April 2020 on the following terms: The assets were revalued as under: (i) Stock ₹ 38,000 (ii) Building is appreciated by 10% (iii) Plant and Machinery is to be depreciated by 10% (iv) R.D.D. is increased up to ₹ 1,000. The goodwill of retiring partner is valued at ₹ 18,000 and remaining partners decided that goodwill be written off in their new ratio which will be 5 : 3. Amount due to Dinesh is to be transferred to his loan account. Prepare: (1) Revaluation Account (2) Partners’ Capital Account and (3) Balance Sheet of New Firm.

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Answer: Realisation profit ₹ 16,000 (Rajeev ₹ 6,400, Sanjeev ₹ 6,400, Mahesh ₹ 3,200); final payments Rajeev ₹ 2,56,000, Sanjeev ₹ 96,000, Mahesh ₹ 88,000 (total ₹ 4,40,000). Creditors and bills payable are assumed to be paid in full, as no other information is given. Realisation Account Dr. ParticularsAmount (₹)Cr. ParticularsAmount (₹) To Machinery A/c2,00,000By R.D.D. A/c12,000 To Investment A/c96,000By Creditors A/c1,60,000 To Debtors A/c2,20,000By Bills Payable A/c56,000 To Stock A/c80,000By Bank A/c (assets realised): Machinery 1,80,000 Stock 72,000 Investment 84,000 Debtors 1,80,000 Goodwill 96,0006,12,000 To Bank A/c (creditors paid)1,60,000 To Bank A/c (bills payable paid)56,000 To Bank A/c (dissolution expenses)12,000 To Profit transferred to: Rajeev's Capital A/c 6,400 Sanjeev's Capital A/c 6,400 Mahesh's Capital A/c 3,20016,000 8,40,0008,40,000 Partners’ Capital Accounts Dr. ParticularsRajeev (₹)Sanjeev (₹)Mahesh (₹)Cr. ParticularsRajeev (₹)Sanjeev (₹)Mahesh (₹) To Bank A/c (final payment)2,56,00096,00088,000By Balance b/d2,40,00080,00080,000 By General Reserve A/c (2 : 2 : 1)9,6009,6004,800 By Realisation A/c (profit)6,4006,4003,200 2,56,00096,00088,0002,56,00096,00088,000 Bank Account Dr. ParticularsAmount (₹)Cr. ParticularsAmount (₹) To Balance b/d56,000By Realisation A/c (creditors)1,60,000 To Realisation A/c (assets and goodwill realised)6,12,000By Realisation A/c (bills payable)56,000 By Realisation A/c (dissolution expenses)12,000 By Rajeev's Capital A/c2,56,000 By Sanjeev's Capital A/c96,000 By Mahesh's Capital A/c88,000 6,68,0006,68,000 OR (Retirement of Dinesh) Answer: Revaluation profit ₹ 8,200; amount due to Dinesh ₹ 66,440 (transferred to loan); new Balance Sheet total ₹ 1,89,000. Working notes Stock: ₹ 38,000 – ₹ 30,400 = ₹ 7,600 increase. Building: 10% of ₹ 50,000 = ₹ 5,000 increase. Plant and Machinery: 10% of ₹ 42,000 = ₹ 4,200 decrease. R.D.D.: ₹ 1,000 – ₹ 800 = ₹ 200 increase (loss). Dinesh's share of goodwill is ₹ 18,000, so goodwill...

Dr. Particulars	Ramesh (₹)	Dinesh (₹)	Mahesh (₹)	Cr. Particulars	Ramesh (₹)	Dinesh (₹)	Mahesh (₹)
To Goodwill A/c (written off 5 : 3)	56,250	—	33,750	By Balance b/d	46,000	42,000	27,600
To Dinesh's Loan A/c	—	66,440	—	By Revaluation A/c	4,100	1,640	2,460
To Balance c/d	50,850	—	30,510	By General Reserve A/c	12,000	4,800	7,200
				By Goodwill A/c (raised 5 : 2 : 3)	45,000	18,000	27,000
	1,07,100	66,440	64,260		1,07,100	66,440	64,260

Rajeev, Sanjeev and Mahesh were partners in the firm Janki Traders sharing profit and losses in the ratio of 2 : 2 : 1. The following is the Balance Sheet as on 31st March 2022:Balance Sheet as on 31st March 2022LiabilitiesAmount (₹)AssetsAmount (₹)C…

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Liabilities	Amount (₹)	Assets	Amount (₹)
Capital Accounts:		Machinery	2,00,000
Rajeev	2,40,000	Investment	96,000
Sanjeev	80,000	Debtors 2,20,000 Less: R.D.D. 12,000	2,08,000
Mahesh	80,000	Stock	80,000
General Reserve	24,000	Bank	56,000
Creditors	1,60,000
Bills Payable	56,000
	6,40,000		6,40,000

Liabilities	Amount (₹)	Assets	Amount (₹)
Capital Accounts:		Plant and Machinery	42,000
Ramesh	46,000	Building	50,000
Dinesh	42,000	Stock	30,400
Mahesh	27,600	Debtors 26,800 Less: R.D.D. 800	26,000
Creditors	30,000	Bank	32,400
Bills Payable	11,200
General Reserve	24,000
	1,80,800		1,80,800

Dr. Particulars	Amount (₹)	Cr. Particulars	Amount (₹)
To Machinery A/c	2,00,000	By R.D.D. A/c	12,000
To Investment A/c	96,000	By Creditors A/c	1,60,000
To Debtors A/c	2,20,000	By Bills Payable A/c	56,000
To Stock A/c	80,000	By Bank A/c (assets realised): Machinery 1,80,000 Stock 72,000 Investment 84,000 Debtors 1,80,000 Goodwill 96,000	6,12,000
To Bank A/c (creditors paid)	1,60,000
To Bank A/c (bills payable paid)	56,000
To Bank A/c (dissolution expenses)	12,000
To Profit transferred to: Rajeev's Capital A/c 6,400 Sanjeev's Capital A/c 6,400 Mahesh's Capital A/c 3,200	16,000
	8,40,000		8,40,000

Dr. Particulars	Rajeev (₹)	Sanjeev (₹)	Mahesh (₹)	Cr. Particulars	Rajeev (₹)	Sanjeev (₹)	Mahesh (₹)
To Bank A/c (final payment)	2,56,000	96,000	88,000	By Balance b/d	2,40,000	80,000	80,000
				By General Reserve A/c (2 : 2 : 1)	9,600	9,600	4,800
				By Realisation A/c (profit)	6,400	6,400	3,200
	2,56,000	96,000	88,000		2,56,000	96,000	88,000

Dr. Particulars	Amount (₹)	Cr. Particulars	Amount (₹)
To Balance b/d	56,000	By Realisation A/c (creditors)	1,60,000
To Realisation A/c (assets and goodwill realised)	6,12,000	By Realisation A/c (bills payable)	56,000
		By Realisation A/c (dissolution expenses)	12,000
		By Rajeev's Capital A/c	2,56,000
		By Sanjeev's Capital A/c	96,000
		By Mahesh's Capital A/c	88,000
	6,68,000		6,68,000

Dr. Particulars	Amount (₹)	Cr. Particulars	Amount (₹)
To Plant and Machinery A/c	4,200	By Stock A/c	7,600
To R.D.D. A/c	200	By Building A/c	5,000
To Profit transferred to: Ramesh's Capital A/c 4,100 Dinesh's Capital A/c 1,640 Mahesh's Capital A/c 2,460	8,200
	12,600		12,600

Liabilities	Amount (₹)	Assets	Amount (₹)
Capital Accounts:		Plant and Machinery (42,000 – 4,200)	37,800
Ramesh	50,850	Building (50,000 + 5,000)	55,000
Mahesh	30,510	Stock	38,000
Dinesh's Loan A/c	66,440	Debtors 26,800 Less: R.D.D. 1,000	25,800
Creditors	30,000	Bank	32,400
Bills Payable	11,200
	1,89,000		1,89,000