Question - 14 (A)

Anup and sumit are equal partners in a firm they decided to dissolve the firm on december 31, 2006 when the balance sheet is as under:

Liabilities                                         Amt.

Creditors                                         27,000

Reserve fund                                   10,000

Loan                                                40,000

Capital                   

Anup                60,000

Sumit               60,000                   1,20,000

                                                      1,97,000

Assets                                                Amt.

Cash                                                 11,000

Debtor                                              12,000

Plant                                                 47,000

Stock                                                42,000

Lease hold land                                60,000

Furniture                                          25,000

                                                       1,97,000

The assets were realized as follows :

Lease hold land Rs. 72,000

Furniture Rs. 22,500

Stock Rs. 40,500

Plant Rs. 48,000

Sundry debtor Rs. 10,500

The creditor's were paid Rs. 25,500 in full settlement expenses of realization amount to Rs. 2,500 Prepare Realization account, Bank account, Partner's capital accounts to close the books of the firm. 

Question - 14 (B)

A and B are parnters in a firm who share profits and losses in the ratio of 3:1 they decided to dissolve the firm on 31st December 2015 their balance sheet was as follows:

Liabilities                                         Amt.

Creditors                                         2,700

Reserve fund                                   3,000

B's Loan                                          3,000

Capital                   

A               12,000

B               12,000                         24,000

                                                      32,700

Assets                                                Amt.

Cash at Bank                                   3,000

Debtor                                              1,000

Plant                                               19,700

Building                                           9,000

                                                       32,700

Assets were realized as under :
Debtors Rs. 900, Plant Rs. 18,000 Building Rs. 7,200. Creditors were paid Rs. 2,600 in full settlement realized expenses amount to Rs. 500 prepare Realization A/c and partner's capital A/c.

NOTE : Purchase Novbodh book for extra information.