Page 249 - VIRANSH COACHING CLASSES

3. All partners were insolvent. The following amount was recovered from them Dinesh ` 2,000
and Mangesh ` 2,000.
Prepare necessary ledger account to close the books of the firm.

Solution : In the books of Dinesh, Mangesh and Ramesh
Dr. Realisation Account Cr.
Particulars Amount Amount Particulars Amount Amount
(`) (`) (`) (`)
To Sundry Assets A/c By Bank A/c
Building 78,000 Building 40,000
Computer 45,000 Computer 30,000
Debtors 20,000 Debtors 10,000 80,000
Goodwill 35,000 1,78,000 By Partners’ Capital A/c

To Bank A/c 2,000 (Loss on Realisation
(Realisation transferred.)
Expenses paid) Dinesh 40,000
Mangesh 40,000
Ramesh 20,000 1,00,000

1,80,000 1,80,000

Dr. Partners’ Capital Account Cr.
Particulars Dinesh Mangesh Ramesh Particulars Dinesh Mangesh Ramesh
(`) (`) (`) (`) (`) (`)
To Realisation A/c 40,000 40,000 20,000 By Balance b/d 26,000 22,000 18,000
(Loss on By Bank A/c 2,000 2,000
Realisation) By Deficiency A/c 12,000 16,000 2,000
40,000 40,000 20,000 40,000 40,000 20,000

Dr. Bank Account Cr.
Particulars Amount ` Particulars Amount `
To Balance b/d 8,000 By Realisation A/c 2,000
To Dinesh’s Capital A/c 2,000 By Creditors A/c 60,000
To Mangesh’s Capital A/c 2,000 By Bills Payable A/c 30,000
To Realisation A/c 80,000
92,000 92,000

Dr. Creditors Account Cr.

Particulars Amount ` Particulars Amount `
To Bank A/c 60,000 By Balance b/d 80,000
To Deficiency A/c 20,000
80,000 80,000

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