Shilpa, Meena and Nanda decided to dissolve their partnership on 31st March, 2026. Their profit-sharing ratio was 3 : 2 : 1 and their Balance Sheet was as under:

BALANCE SHEET OF SHILPA, MEENA AND NANDA as on 31st March, 2026

It is agreed as follows:

Stock of value of ₹ 41,660 is taken over by Shilpa for ₹ 35,000 and she agreed to pay bank loan. The remaining stock was sold at ₹ 14,000 and debtors amounting to ₹ 10,000 realised ₹ 8,000. Land is sold for ₹ 1,10,000. The remaining debtors realised 50% at their book value. Cost of realisation amounted to ₹ 1,200. There was a typewriter not recorded in the books worth of ₹ 6,000 which were taken over by one of the Creditors at this value.

Prepare Realisation Account, Partners' Capital Accounts, and Cash Account to close the books of the firm.

A, B and C were equal partners. On 31st March, 2026, their Balance Sheet stood as:

The firm was dissolved on the above date on the following terms:

• (a) For the purpose of dissolution, Investments were valued at ₹ 18,000 and A took over the Investments at this value.
• (b) Fixed Assets realised ₹ 29,700 whereas Stock and Debtors realised ₹ 80,000.
• (c) Expenses of realisation paid were ₹ 1,300.
• (d) Creditors allowed discount of ₹ 800.
• (e) A post-dated cheque for ₹ 1,500 under discount was dishonoured as the acceptor had become insolvent and was unable to pay and hence the firm paid the bank.

Prepare Realisation Account, Partners' Capital Accounts and Cash Account showing how the accounts would finally be settled among the partners.

Solution:

Arnab, Ragini and Dhrupad are partners sharing profits in the ratio of 3 : 1 : 1. Last year, conflicts arose due to certain issues of disagreements and on 31st March, 2026, they decided to dissolve the firm. On that date their Balance Sheet was as under:

BALANCE SHEET OF ARNAB, RAGINI AND DHRUPAD as at 31st March, 2026

The assets were realised and the liabilities were paid as under:

• (i) Arnab agreed to pay his brother's loan.
• (ii) Investments realised 20% less.
• (iii) Creditors were paid at 10% less.
• (iv) Building was auctioned for ₹ 3,55,000. Commission on auction was ₹ 5,000.
• (v) 50% of the stock was taken over by Ragini at market price which was 20% less than the book value and the remaining was sold at market price.
• (vi) Dissolution expenses were ₹ 8,000. ₹ 3,000 were to be borne by the firm and the balance by Dhrupad. The expenses were paid by him.

Prepare Realisation Account and Partners' Capital Accounts.

Mike and Ajay are partners sharing profits and losses in ratio of the capitals. They decided to dissolve their firm on 31st March, 2026, the date on which the Balance Sheet stood as under:

Following additional information is given:

Sundry assets realised ₹ 14,00,000 and the liabilities were discharged as follows:

• (i) Creditors due on 31st May, 2026, were paid at a discount of 3% per annum.
• (ii) Bills Payable were discharged at a rebate of ₹ 1,000.
• (iii) Workmen Compensation Claim of ₹ 40,000 was met.
• (iv) Expenses of dissolution amounting to ₹ 30,000 were paid.

You are required to prepare:

• (a) Realisation Account.
• (b) Partners' Capital Accounts.

Ashish and Kanav were partners in a firm sharing profits and losses in the ratio of 3 : 2. On 31st March, 2026 their Balance Sheet was as follows:

BALANCE SHEET OF ASHISH AND KANAV as at 31st March, 2026

On the above date, they decided to dissolve the firm.

• (a) Ashish agreed to take over furniture at ₹ 38,000 and pay Mrs. Ashish's loan.
• (b) Sundry Debtors realised ₹ 18,500 and plant realised 10% more.
• (c) Kanav took over 40% of the stock at 20% less than the book value. Remaining stock was sold at a gain of 10%.
• (d) Sundry Creditors took over investments in full settlement.
• (e) Kanav agreed to take over the responsibility of completing dissolution at an agreed remuneration of ₹ 12,000 and to bear realisation expenses. Actual expenses of realisation amounted to ₹ 8,000.

Prepare Realisation Account.

A and B are partners in a firm sharing profits and losses in the ratio of 3 : 2. On 31st March, 2026, their Balance Sheet was as follows:

The firm was dissolved on 31st March, 2026 and both the partners agreed to the following:

• (a) A took Investments at an agreed value of ₹ 8,000. He also agreed to settle Loan by Mrs. A.
• (b) Other assets realised as: Stock—₹ 5,000; Debtors—₹ 18,500; Furniture—₹ 4,500; Plant—₹ 25,000.
• (c) Expenses of realisation came to ₹ 1,600.
• (d) Creditors agreed to accept ₹ 37,000 in full settlement of their claims.

Prepare Realisation Account, Partners' Capital Accounts and Bank Account.

Bale and Yale are equal partners of a firm. They decide to dissolve their partnership on 31st March, 2026 at which date their Balance Sheet stood as:

BALANCE SHEET OF ASHISH AND KANAV as at 31st March, 2026

On the above date, they decided to dissolve the firm. (a) Ashish agreed to take over furniture at ₹ 38,000 and pay Mrs. Ashish’s loan.

(b) Sundry Debtors realised ₹ 18,500 and plant realised 10% more.

(c) Kanav took over 40% of the stock at 20% less than the book value. Remaining stock was sold at a gain of 10%.

(d) Sundry Creditors took over investments in full settlement.

(e) Kanav agreed to take over the responsibility of completing dissolution at an agreed remuneration of ₹ 12,000 and to bear realisation expenses. Actual expenses of realisation amounted to ₹ 8,000.