Srijan, Raman and Manan were partners in a firm sharing profits and losses in the ratio of 2:2:1. On 31st March, 2017 their Balance Sheet was as follows: Balance Sheet of Srijan, Raman and Manan as on 31.3.2017 Liabilities Amount Rs. Assets Amount Rs. Capitals: Srijan 2,00,000 Raman 1,50,000 3,50,000 Capital: Manan 10,000 Creditors 75,000 Plant 2,20,000 Bills Payable 40,000 Investments 70,000 Outstanding Salary 35,000 Stock 50,000 Debitors 60,000 Bank 10,000 Profit and Loss Account 80,000 5,00,000 5,00,000 On the above data they decided to dissolve the firm. (i) Srijan was appointed to realise the assets and discharge the liabilities. Srijan was to receive 5% commission on the amount realised. The assets realised as follows: Plant Rs. 2,00,000; Investments Rs.60,000; Stock Rs.40,000; Debtors Rs.50,000. Expenses on realisation amounted to Rs.5,000. Prepare Realisation Account, Bank Account and Partners' Capital Accounts.<p></p>

Srijan, Raman and Manan were partners in a firm sharing profits and losses in the ratio of 2:2:1. On 31st March, 2017 their Balance Sheet was as follows: Balance Sheet of Srijan, Raman and Manan as on 31.3.2017 Liabilities Amount Rs. Assets Amount Rs. Capitals: Srijan 2,00,000 Raman 1,50,000 3,50,000 Capital: Manan 10,000 Creditors 75,000 Plant 2,20,000 Bills Payable 40,000 Investments 70,000 Outstanding Salary 35,000 Stock 50,000 Debitors 60,000 Bank 10,000 Profit and Loss Account 80,000 5,00,000 5,00,000 On the above data they decided to dissolve the firm. (i) Srijan was appointed to realise the assets and discharge the liabilities. Srijan was to receive 5% commission on the amount realised. The assets realised as follows: Plant Rs. 2,00,000; Investments Rs.60,000; Stock Rs.40,000; Debtors Rs.50,000. Expenses on realisation amounted to Rs.5,000. Prepare Realisation Account, Bank Account and Partners' Capital Accounts.

Realisation Account

Particulars	Amount (Rs.)	Particulars	Amount (Rs.)
To Plant	2,20,000	By Plant	2,00,000
To Investments	70,000	By Investments	60,000
To Stock	50,000	By Stock	40,000
To Debtors	60,000	By Debtors	50,000
To Bank (Balance)	10,000	By Bank (Expenses)	5,000
To Profit & Loss A/c (Loss on Realization)	55,000
	4,65,000		3,55,000

Loss on Realisation = 4,65,000 - 3,55,000 = 1,10,000

The loss is distributed among partners in their profit-sharing ratio of 2:2:1

Srijan's share of loss = (2/5) * 1,10,000 = 44,000
Raman's share of loss = (2/5) * 1,10,000 = 44,000
Manan's share of loss = (1/5) * 1,10,000 = 22,000

Bank Account

Particulars	Amount (Rs.)	Particulars	Amount (Rs.)
To Balance b/d	10,000	By Expenses	5,000
To Plant	2,00,000	By Creditors	75,000
To Investments	60,000	By Bills Payable	40,000
To Stock	40,000	By Outstanding Salary	35,000
To Debtors	50,000	By Srijan's Capital A/c (Commission)	17,750
To Profit & Loss A/c (Loss on Realization)	1,10,000	By Srijan's Capital A/c	2,00,000
To Profit & Loss A/c (Loss on Realization)	44,000	By Raman's Capital A/c	1,50,000
To Profit & Loss A/c (Loss on Realization)	44,000	By Manan's Capital A/c	10,000
To Profit & Loss A/c (Loss on Realization)	22,000	By Balance c/d	67,250
	5,36,000		5,36,000

Srijan's commission = 5% of 3,55,000 = 17,750

Partners' Capital Accounts

Srijan's Capital Account

Particulars	Amount (Rs.)	Particulars	Amount (Rs.)
To Balance b/d	2,00,000	By Bank	2,00,000
To Loss on Realization	44,000	By Bank (Commission)	17,750
	2,44,000		2,17,750
		By Balance c/d	26,250
			2,44,000

Raman's Capital Account

Particulars	Amount (Rs.)	Particulars	Amount (Rs.)
To Balance b/d	1,50,000	By Bank	1,50,000
To Loss on Realization	44,000
	1,94,000		1,50,000
		By Balance c/d	44,000
			1,94,000

Manan's Capital Account

Particulars	Amount (Rs.)	Particulars	Amount (Rs.)
To Balance b/d	10,000	By Bank	10,000
To Loss on Realization	22,000
	32,000		10,000
		By Balance c/d	22,000
			32,000

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