DERSHIP ACCOUNTS-IV DISSOLUTION OF FIRM687A, B and C are partners in a firm sharing profits and losses in the ratio of 2:2: 1. They decide todissolve and appoint B to realise the assets and distribute the proceeds for which he is to receive,as his remuneration, 5% of the amounts ultimately paid to A and C but in lieu of this, he is to bear allthe expenses of realisation. The Balance Sheet of the firm on the date of dissolution is as under :LiabilitiesAssets₹editors1,317Debtors4,229Capital3,960Less Provision4,018is Capital2,970Stock1,872Cash290Other Assets1,710357C (Over drawn)8,2478,247B informs about the following realisations :yDebtors: 3,462, Stock 1,444; Goodwill: 50, Other assets : 914.9Creditors which were not recorded in books are now paid 100. The expenses of realisation amountedto 310. C is able to contribute only 100 beyond which he expresses his insolvency. Close the(Ans. Realisation Loss 1,830; Payment to A3,432; to B * 2,875)books of the firm.STING0211.

Partnership- A partnership is a type of business in which two or more people form a formal agreement…

687 A, B and C are partners in a firm sharing profits and losses in the ratio of 2:2: 1. They decide to dissolve and appoint B to realise the assets and distribute the proceeds for which he is to receive, as his remuneration, 5% of the amounts ultimately paid to A and C but in lieu of this, he is to bear all the expenses of realisation. The Balance Sheet of the firm on the date of dissolution is as under: Liabilities ₹ Assets ₹ ors 1,317 Debtors 4,229 apital 3,960 Less Provision 4,018 pital 2,970 Stock 1,872 211.

687 A, B and C are partners in a firm sharing profits and losses in the ratio of 2:2: 1. They decide to dissolve and appoint B to realise the assets and distribute the proceeds for which he is to receive, as his remuneration, 5% of the amounts ultimately paid to A and C but in lieu of this, he is to bear all the expenses of realisation. The Balance Sheet of the firm on the date of dissolution is as under: Liabilities ₹ Assets ₹ ors 1,317 Debtors 4,229 apital 3,960 Less Provision 4,018 pital 2,970 Stock 1,872 211.

Financial Accounting

15th Edition

ISBN:9781337272124

Author:Carl Warren, James M. Reeve, Jonathan Duchac

Publisher:Carl Warren, James M. Reeve, Jonathan Duchac

Chapter12: Accounting For Partnerships And Limited Liability Companies

Section: Chapter Questions

Problem 22E

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20. Basant, Hemant and Sarat were partners in a firm sharing profits and losses in the ratio of 4:3 : 3, respectively. The firm was dissolved and Hemant was appointed to realise the assets and distribute the proceeds. Hemant is to receive 5% commission on the amount realised from sale of assets and to bear all expenses of realisation. Balance Sheet on the date of dissolution was as under : Liabilities Assets Creditors Basant's Capital Hemant's Capital 59,000 30,000 20,000 Cash Debtors Less : Provision 1,500 45,500 2,500 43,000 60,000 4,500 Stock Sarat's Capital 1,09,000 1,09,000 Debtors realised 35,000 ; Stock 45,000 ; Goodwill 2,000 ; Creditors were paid? 57,500 in full settlement. In addition, outstanding creditors 500, were also paid. The expenses amounted to 7 600. Sarat is insolvent and brings 3,000 only from his estate. Show Realisation Account, Cash Account and Capital Accounts of the Partners. Ans. [Loss on Realisation 24,100 ; Final Payment to Basant 24,762, Hemant 7 20,608 ;…
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