Ajay, Vijay and Sanjay were in partnership sharing profits and losses in the ratio of 1/5:3/10:1/2. The Balance Sheet as on Dec 31, 2009, when they decided to dissolve, was as follows:
|
Liabilities |
Rs |
Assets |
Rs |
|
Capital Accounts |
Plant and Machinery |
1,50,000 |
|
|
Ajay 90,000 |
Sundry Debtors |
6,00,000 |
|
|
Vijay 1,20,000 |
Advance to Ajay |
60,000 |
|
|
Sanjay 90,000 |
3,00,000 |
Cash |
30,000 |
|
Loan from Bank on Book Debts and Plant |
3,60,000 |
Profit and Loss Account |
2,40,000 |
|
Loan from Sanjay (advanced on Jan 1, 2009) |
60,000 |
||
|
Trade Creditors |
3,60,000 |
||
|
10,80,000 |
10,80,000 |
You ascertain that the balance in Profit and Loss Account is prior to charging interest on Sanjay’s loan. Plant and Machinery and Debtors realised 80%. Ajay’s private estate which was valued at Rs 2,10,000 has a liability there on Rs 90,000. The private estate realised only Rs 1,20,000. Vijay is insolvent on his own account to partnership.
You are required to prepare Realisation Account, Cash Account and Partner’s Capital Accounts.