45. (Comprehensive) Amar, Akbar and Anthony commenced business on 1st April 2018, sharing profits and losses in the ratio of 2: 2:1. Capitals contributed were: Amar Rs. 40,000: Akbar Rs. 30,000 and Anthony RS. 20,000. The partners were entitled to interest on capital @6% p.a. During the year ended 31st March 2019, the firm earned a profit (before interest) of Rs. 25,000. The partners had drawn Amar Rs. 10.000, Akbar Rs. 8,000 and Anthony Rs. 5,000 On 31st March, 2019 the firm was dissolved. The assets realised RS. 1,00,000. The creditors which totaled Rs. 15,000 were paid at a discount of 3%. There was a contingent liability of Rs. 500 on bills discounted which was also paid. Expenses of realisation amounted to Rs. 1,450. Prepare accounts to close the books of the firm.
The solution of Question 45 Chapter 7 of +2 Part-1: –
Profit & loss appropriation A/c for ending of the year 31-3-2019
Particulars
Amount
Particulars
Amount
To interest on capital A/c
By profit b/d (before interest)
25,000
Amar (40,000 X 6/100)
2,400
Akbar (30,000 X 6/100)
1,800
Anthony (20,000 X 6/100)
1,200
5,400
To profit transferred to
To Amar’s capital A/c 2/5
7,840
To Akbar’s capital A/c 2/5
7,840
Anthony (20,000 X 6/100)
3,920
19,600
25,000
25,000
Partners’ Capital Account
Particulars
Amar
Akbar
Anthony
Particulars
Amar
Akbar
Anthony
To Drawings A/c
10,000
8,000
5,000
By Balance b/d
40,000
30,000
By intt. On capital
2,400
1,800
1,200
By P & L A/c (profit )
7,840
7,840
3,920
To Balance c/d
40,240
31,640
20,120
50,240
39,640
25,120
50,240
39,640
25,120
Balance sheet
Liabilities
Amount
Asstes
Amount
Capital A/c
Sundry Assets (balancing figures )
1,07,000
Amar
40,240
Akbar
31,640
Anthony
20,120
Creditors
15,000
1,07,000
1,07,000
Realisation A/c
Particulars
Amount
Particulars
Amount
To sundry assets A/c
1,07,000
By Creditors
15,000
To cash A/c (liabilities & expenses paid
By cash
Creditors
14,550
Assets realised
1,00,000
Contingent liability
500
By loss on realisation
Expenses on Realisation
1,450
Amar
3,400
Akbar
3,400
Anthony
1,700
8,500
1,23,500
1,23,500
Partners’ Capital Account
Particulars
Amar
Akbar
Anthony
Particulars
Amar
Akbar
Anthony
To Realisation A/c Loss
3,400
3,400
1,700
By Balance b/d
40,240
31,640
20,120
To Balance c/d
36,840
28,240
18,420
40,240
31,640
20,120
40,240
31,640
20,120
Cash A/c
Particulars
Amount
Particulars
Amount
To Realisation A/c
By realisation A/c
Assets realised
1,00,000
Creditors
14,550
Contingent liability
500
Expenses on Realisation
1,450
By Amar’s capital A/c
36,840
By Akbar ’s capital A/c
28,240
By Akbar ’s capital A/c
18,420
1,00,000
1,00,000
Also, Check out the solved question of previous Chapters: –
