dissolution-of-partnership-firm-sum-no-8

Sitaram, Gangaram and Rajaram are partners sharing Profits and Losses in the ratio of 4:2:3. On. 1st April 2019 they agreed to dissolve the partnership, their Balance Sheet was as follows : – Book Keeping and Accountancy

[6] Dissolution of Partnership Firm – Practical problem – (Balbharati Book Keeping and Accountancy 12th Board Exam)

Practical problem | Q 8 | Page 248

Sitaram, Gangaram, and Rajaram are partners sharing Profits and Losses in the ratio of 4:2:3. On. 1^st April 2019 they agreed to dissolve the partnership, their Balance Sheet was as follows :

Balance Sheets as on 31^st March 2019

SOLUTION

Working Notes :

(1) ₹ 1,100 is recovered from Rajaram’s estate which is recorded in credit side of Rajaram’s Capital Account and on debit side of Bank A/c.

(2) Capital deficiency of Rajaram = Debit total of Capital A/c – Credit total of Capital A/c

= 18,000 – 15,900 = ₹ 2,100

Deficit amount of Rajaram A/c  ₹ 2,100 is distributed among continuing partners’ in 2: 1 ratio.

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