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 anddistribute the proceeds. Hemant is to receive 5% commission on the amount realised from saleof assets and to bear all expenses of realisation.Balance Sheet on the date of dissolution was as under :LiabilitiesAssetsCreditorsBasant's CapitalHemant's Capital59,00030,00020,000CashDebtorsLess : Provision1,50045,5002,50043,00060,0004,500StockSarat's Capital1,09,0001,09,000Debtors realised 35,000 ; Stock 45,000 ; Goodwill 2,000 ; Creditors were paid? 57,500 infull settlement. In addition, outstanding creditors 500, were also paid. The expensesamounted 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 ;Deficiency in Sarat's Capital A/cs 8,730].Jonnor in the ratio of 3:2:1 On 31st

Dissolution of partnership describes the procedure whereby the partners' relationship is dissolved…

Basant, Hemant and Sarat were partners in a firm sharing profits and losses in :3, respectively. The firm was dissolved and Hemant was appointed to realis distribute the proceeds. Hemant is to receive 5% commission on the amount r of assets and to bear all expenses of realisation. 20. 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 45,5 2,5 Stock

Basant, Hemant and Sarat were partners in a firm sharing profits and losses in :3, respectively. The firm was dissolved and Hemant was appointed to realis distribute the proceeds. Hemant is to receive 5% commission on the amount r of assets and to bear all expenses of realisation. 20. 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 45,5 2,5 Stock

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Subject : Accounting
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None
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