13 Dec 2020 6:28 pm
Sangeeta, Anita, and Smita, were in partnership, sharing Profits, and Losses, in the ratio 2:2:1, Their Balance Sheet, as on 31st March 2019, was as under,
[6] Dissolution of Partnership Firm – Practical problem – (Balbharati Book Keeping and Accountancy 12th Board Exam)
Sangeeta, Anita, and Smita were in partnership sharing Profits and Losses in the ratio 2:2:1. Their Balance Sheet as on 31st March 2019 was as under :
Balance Sheets as on 31st March 2019.
5. There was a contingent liability in respect of bills of ₹ 1,00,000 which was under discount. Out of them, a holder of one bill of ₹ 20,000 became insolvent.
Working Notes :
(1) Amount paid towards Sandhya’s Loan = Loan amount + Interest due on loan
= 1,20,000 + 6,000 = ₹ 1,26,000
(2) Amount received from Debtors = Debtors – Bad debts
= 1,25,000 – 10 % of 1,25,000 = 1,25,000 – 12,500
= ₹ 1,12,500
(3) Amount paid to Creditors = Creditor – 5 % discount
= 1,20,000 – 5 % on 1,20,000
= 1,20,000 – 6,000
= ₹ 1,14,000
(4) Amount paid towards Bills payable = Bills payable – 5 % discount
= 20,000 – 5 % on 20,000
= 20,000 – 1,000 =
₹ 19,000
(5) Bill of ₹ 1,00,000 was discounted with the Bank. On the due date bank could not recover ₹ 20,000 from one bill holder as he was declared insolvent. Therefore, we required to settle that contingent liability of ₹ 20,000.