Answered

\begin{tabular}{|l|l}
\hline Ans. & \begin{tabular}{l}
Realisation [tex]$A / c ($[/tex] Loss [tex]$)=₹ 14,000$[/tex] (Shaswat \\
Shashwat [tex]$=₹ 1,000$[/tex], Shiv [tex]$=₹ 18,500 ;$[/tex] Amount paid to Creditors [tex]$=₹ 19,500 ;$[/tex] Bank [tex]$A / c$[/tex] \\
Total [tex]$=₹ 21,000 ;$[/tex] Deficiency [tex]$A / c$[/tex] Total [tex]$=$[/tex] Rs. [tex]$19,500$[/tex].
\end{tabular} \\
\hline
\end{tabular}

Board Problems
Following is the Balance Sheet of Mona, Sona, and Reena:

Balance Sheet as on 31st March, 2020

\begin{tabular}{|l|r|l|r|}
\hline
\multicolumn{1}{|c|}{Liabilities} & Amt. (₹) & \multicolumn{1}{|c|}{Assets} & Amt. (₹) \\
\hline
Creditors & 4,000 & Machinery & 2,000 \\
Overdraft & 6,000 & Goodwill & 3,000 \\
Capital A/c's : & & Stock and Debtors & 19,000 \\
Mona & 12,000 & Profit and Loss A/c & 6,000 \\
Sona & 9,000 & Reena's Capital & 1,000 \\
\cline{2-2} & 31,000 & & 31,000 \\
\hline
\end{tabular}

Reena is declared insolvent. The firm is dissolved, and assets are realized as follows:

- Stock and Debtors: ₹ 18,000
- Goodwill: NIL
- Machinery: at book value

A contingent liability against the firm for ₹ 3,000 is cleared. Creditors allowed a discount of [tex]$10\%$[/tex]. Reena could pay only 25 paise in a rupee of the balance due. The profit-sharing ratio was [tex]$8: 4: 3$[/tex].

Consider the Indian Partnership Act and give ledger accounts to close the books.



Answer :

GinnyAnswer
Let's go through the solution step-by-step to close the books as per the given question and realized values.

### Given Data:
1. Creditors: ₹4,000
2. Overdraft: ₹6,000
3. Capital Accounts:
- Mona: ₹12,000
- Sona: ₹9,000
- Reena: ₹1,000
4. Assets:
- Machinery: ₹2,000
- Goodwill: ₹3,000
- Stock and Debtors: ₹19,000
- Profit and Loss Account: ₹6,000 (debit balance)

### Realization:
1. Stock and Debtors: ₹18,000
2. Machinery: ₹2,000
3. Goodwill: ₹0
4. Contingent Liability Cleared: ₹3,000
5. Creditors Discount: 10% on ₹4,000 → ₹4,000 - ₹400 = ₹3,600
6. Reena can pay 25 paise per rupee of ₹1,000 → ₹1,000 0.25 = ₹250

### Step-by-step Solution:

#### 1. Realization Account:
- Sell Stock and Debtors: ₹18,000
- Sell Machinery: ₹2,000
- Goodwill realization is ₹0
- Total real realizations: ₹20,000

Realization Account:
| Particulars | Amount (₹) | Particulars | Amount (₹) |
|-------------------------------|------------|---------------------------|------------|
| To Stock and Debtors A/c | 18,000 | By Creditors A/c (10%) | 3,600 |
| To Machinery A/c | 2,000 | By Bank (Contingent Liab.)| 3,000 |
| To Goodwill A/c (written off) | 3,000 | By Bank (Overdraft) | 6,000 |
| To Profit and Loss A/c | 6,000 | By Bank (Reena 0.25) | 250 |
| To Reena's Capital A/c | 1,000 | | |
| To Bank (deficit amount) | | By Bank (Realized Amt.) | 20,000 |
| Total | 30,000 | Total | 30,000 |


#### 2. Payment to Creditors:
Given the discount, creditors are paid ₹3,600.

Creditors Account:
| Particulars | Amount (₹) | Particulars | Amount (₹) |
|---------------------------|------------|------------------------------------|------------|
| To Bank A/c | 3,600 | By Realization A/c (Realized Amt.) | 3,600 |
| Total | 3,600 | Total | 3,600 |

#### 3. Distribution among Partners:
Profit/Loss sharing ratio: 8:4:3

_Deficit to be absorbed by Mona and Sona since Reena cannot pay fully._

Bank Account:*
| Particulars | Amount (₹) | Particulars | Amount (₹) |
|---------------------------|------------|--------------------------|------------|
| To Realization (Exp) | 9,250 | By Realization (Amt) | 20,000 |
| ... | | ... |
сокращенно |
| Total: ₹9,150 - ₹3,600 - ₹250 - ₹3,000 = ₹13,150 | |

Finally:
#### Realization impact:
- Total funds after liabilities: ₹13,150
Total liabilities (₹6000 - 3000 - 250 = 9,150) => ₹13,150,

So:

#### Total availability: ₹13,150

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