Amar, Akbar and Antony are partners sharing profits and losses in the ratio of 2:1:1. On Mar 31, 20 –, their Balance Sheet was as follows:
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a customer who owed rs 1 20 000 became insolvent and nothing could be recovered from 609141
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Rs |
Assets |
Rs |
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|
Creditors |
80,000 |
Cash |
10,000 |
||
|
Capitals: |
Bank |
60,000 |
|||
|
Amar |
2,00,000 |
Debtors |
1,40,000 |
||
|
Akbar |
1,00,000 |
Loss: Provision for |
|||
|
Antony |
70.000 |
Doubtful Debts |
7,000 |
1,33,000 |
|
|
3,70,000 |
Stock |
||||
|
On ship |
2,00,000 |
||||
|
In Godown |
40,000 |
2,40,000 |
|||
|
Fixed Assets |
7,000 |
||||
|
4,50,000 |
4,50,000 |
On that day there were three devastating incidents:
A customer who owed Rs 1,20,000 became insolvent and nothing could be recovered from his estate. The ship was caught in a storm and it sunk with the entire cargo. The stock was not insured.
The godown caught fire. The stock that could be saved was only worth Rs 6,000. This stock was also not insured.
The partners decided to dissolve the firm. Fixed assets realised Rs 2,000; remaining debtors realized Rs 19,000; stock was sold for Rs 5,000. The creditors claiming payment totaled Rs 84,000. The partners did not have any private assets. Realisation expenses amounted to Rs 1,000.
You are required to pass journal entities to close the books of the firm. Also, show Realisation Account; Cash and Bank A/c and partner’s Capital Accounts.
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