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
| Liabilities | ₹ | ₹ | Assets | ₹ |
|---|---|---|---|---|
| Capital A/cs: | Land | 81,000 | ||
| Shilpa | 80,000 | Stock | 56,760 | |
| Meena | 40,000 | 1,20,000 | Sundry Debtors | 18,600 |
| Bank Loan | 20,000 | Nanda’s Capital | 23,000 | |
| Sundry Creditors | 37,000 | Cash | 10,840 | |
| Provision for Doubtful Debts | 1,200 | |||
| General Reserve | 12,000 | |||
| 1,90,200 | 1,90,200 |
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.
Amount brought in by Nanda—₹ 17,510. Total of Cash Account—₹ 1,64,650.]
Solution: