Rita and Sobha are partners in a firm Fancy Garments Exports sharing profits and losses equally On ......

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Accountancy ( 12th) Dissolution of Partnership Firm Add to Study Deck

Rita and Sobha are partners in a firm, Fancy Garments Exports, sharing profits and losses equally. On 1st April, 2019, the Balance Sheet of the firm was:

Liabilities	Amount	Assets		Amount
Sundry Creditors	75,000	Cash		6,000
Bills Payable	30,000	Bank		30,000
Rita's Loan	15,000	Stock		75,000
Reserve	24,000	Book Debts	66,000
Capital A/cs:		Less: Provision for Doubtful Debts	6,000	60,000
Rita 90,000
Sobha 30,000	1,20,000	Plant and Machinery		45,000
		Land and Building		48,000
	2,64,000			2,64,000

The firm was dissolved on the date given above. The following transactions took place:

a Rita took 25% of the Stock at a discount of 20% in settlement of her loan.

b Book Debts realised 54,000; balance of the Stock was sold at a profit of 30% on cost.

c Sundry Creditors were paid out at a discount of 10%. Bills Payable were paid in full .

d Plant and Machinery realised 75,000. Land and Building 1,20,000.

e Rita took the goodwill of the firm at a value of 30,000.

f An unrecorded asset of 6,900 was handed over to an unrecorded liability of 6,000 in full settlement.

g Realisation expenses were 5,250.

Show Realisation Account, Partners' Capital Accounts and Bank Account in the books of the firm.

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By: Aman

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