OR Akshad, Aditya and Abha are partners. They share profits and losses equally. Their balance sheet as on 31st March, 2022 was as follows :Balance Sheet as on 31st March, 2022LiabilitiesAmount (₹)AssetsAmount (₹)Creditors50,500Machinery53,000Reserve…

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Q.2 OR Akshad, Aditya and Abha are partners. They share profits and losses equally. Their balance sheet as on 31st March, 2022 was as follows : Balance Sheet as on 31st March, 2022 LiabilitiesAmount (₹)AssetsAmount (₹) Creditors50,500Machinery53,000 Reserve fund22,500Stock32,000 Bills payable15,000Bills Receivable47,000 Capital Accounts :Cash at Bank21,000 Akshad65,000Debtors 28,000 Less: R.D.D. 3,00025,000 Aditya40,000Abha’s Capital15,000 Total1,93,0001,93,000 On 31st March, 2022 it was decided to dissolve the firm : The assets realised were as follows : Stock ₹ 31,000; Machinery ₹ 39,500; Bills receivable ₹ 41,000; Debtors ₹ 27,000 Creditors were paid at a discount of ₹ 500 and Bills payable were paid in full. Realisation expenses amounted to ₹ 6,600. Abha was declared insolvent and only ₹ 3,500 could be recovered from her private property. Prepare : (a) Realisation Account (b) Partners’ Capital Account (c) Bank Account

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Answer: Loss on realisation ₹ 24,600 (₹ 8,200 each); Abha’s deficiency ₹ 12,200 borne by Akshad and Aditya in capital ratio 13 : 8; final payments Akshad ₹ 56,748 and Aditya ₹ 34,652. (a) Realisation Account Dr. ParticularsAmount (₹)Cr. ParticularsAmount (₹) To Machinery A/c53,000By R.D.D. A/c3,000 To Stock A/c32,000By Creditors A/c50,500 To Bills Receivable A/c47,000By Bills Payable A/c15,000 To Debtors A/c28,000By Bank A/c (assets realised: 31,000 + 39,500 + 41,000 + 27,000)1,38,500 To Bank A/c (creditors 50,500 − 500)50,000By Loss on realisation transferred to : To Bank A/c (bills payable)15,000Akshad’s Capital A/c8,200 To Bank A/c (realisation expenses)6,600Aditya’s Capital A/c8,200 Abha’s Capital A/c8,200 Total2,31,600Total2,31,600 Abha’s deficiency: Debit side 15,000 + 8,200 = ₹ 23,200; credit side reserve 7,500 + cash 3,500 = ₹ 11,000. Deficiency = ₹ 12,200. As per the decision in Garner v/s Murray, it is borne by the solvent partners in the ratio of their capitals as per the balance sheet before dissolution, 65,000 : 40,000 = 13 : 8. Akshad 12,200×13/21 = ₹\ 7,552 (rounded) and Aditya 12,200×8/21 = ₹\ 4,648 . (b) Partners’ Capital Accounts Dr. ParticularsAkshad (₹)Aditya (₹)Abha (₹)Cr. ParticularsAkshad (₹)Aditya (₹)Abha (₹) To Balance b/d——15,000By Balance b/d65,00040,000— To Realisation A/c (loss)8,2008,2008,200By Reserve fund A/c7,5007,5007,500 To Abha’s Capital A/c (deficiency)7,5524,648—By Bank A/c (from private estate)——3,500 To Bank A/c (final payment)56,74834,652—By Akshad’s Capital A/c——7,552 By Aditya’s Capital A/c——4,648 Total72,50047,50023,200Total72,50047,50023,200 (c) Bank Account Dr. ParticularsAmount (₹)Cr. ParticularsAmount (₹) To Balance b/d21,000By Realisation A/c (creditors)50,000 To Realisation A/c (assets)1,38,500By Realisation A/c (bills payable)15,000 To Abha’s Capital A/c3,500By Realisation A/c (expenses)6,600 By Akshad’s Capital A/c56,748 By Aditya’s Capital A/c34,652 Total1,63,000Total1,63,000 Note: Reserve fund ₹ 22,500 is distrib...

OR Akshad, Aditya and Abha are partners. They share profits and losses equally. Their balance sheet as on 31st March, 2022 was as follows :Balance Sheet as on 31st March, 2022LiabilitiesAmount (₹)AssetsAmount (₹)Creditors50,500Machinery53,000Reserve…

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Liabilities	Amount (₹)	Assets	Amount (₹)
Creditors	50,500	Machinery	53,000
Reserve fund	22,500	Stock	32,000
Bills payable	15,000	Bills Receivable	47,000
Capital Accounts :		Cash at Bank	21,000
Akshad	65,000	Debtors 28,000 Less: R.D.D. 3,000	25,000
Aditya	40,000	Abha’s Capital	15,000
Total	1,93,000		1,93,000

Dr. Particulars	Amount (₹)	Cr. Particulars	Amount (₹)
To Machinery A/c	53,000	By R.D.D. A/c	3,000
To Stock A/c	32,000	By Creditors A/c	50,500
To Bills Receivable A/c	47,000	By Bills Payable A/c	15,000
To Debtors A/c	28,000	By Bank A/c (assets realised: 31,000 + 39,500 + 41,000 + 27,000)	1,38,500
To Bank A/c (creditors 50,500 − 500)	50,000	By Loss on realisation transferred to :
To Bank A/c (bills payable)	15,000	Akshad’s Capital A/c	8,200
To Bank A/c (realisation expenses)	6,600	Aditya’s Capital A/c	8,200
		Abha’s Capital A/c	8,200
Total	2,31,600	Total	2,31,600

Dr. Particulars	Akshad (₹)	Aditya (₹)	Abha (₹)	Cr. Particulars	Akshad (₹)	Aditya (₹)	Abha (₹)
To Balance b/d	—	—	15,000	By Balance b/d	65,000	40,000	—
To Realisation A/c (loss)	8,200	8,200	8,200	By Reserve fund A/c	7,500	7,500	7,500
To Abha’s Capital A/c (deficiency)	7,552	4,648	—	By Bank A/c (from private estate)	—	—	3,500
To Bank A/c (final payment)	56,748	34,652	—	By Akshad’s Capital A/c	—	—	7,552
				By Aditya’s Capital A/c	—	—	4,648
Total	72,500	47,500	23,200	Total	72,500	47,500	23,200

Dr. Particulars	Amount (₹)	Cr. Particulars	Amount (₹)
To Balance b/d	21,000	By Realisation A/c (creditors)	50,000
To Realisation A/c (assets)	1,38,500	By Realisation A/c (bills payable)	15,000
To Abha’s Capital A/c	3,500	By Realisation A/c (expenses)	6,600
		By Akshad’s Capital A/c	56,748
		By Aditya’s Capital A/c	34,652
Total	1,63,000	Total	1,63,000