Following is the Balance Sheet of Vaibhav, Sanjay, and Santosh. – Book Keeping and Accountancy

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

Practical problem | Q 9 | Page 248

Following is the Balance Sheet of Vaibhav, Sanjay, and Santosh.

Balance Sheets as on 31st March 2019

Solution

Working Notes :

(1) Contingent liability paid, so realisation A/c is debited and Bank A/c is credited.

(2) Santosh could pay only 25 paise in a rupee of the balance due i.e. Balance due from Santosh (Debit side of Partners Capital A/c) = ₹ 10,560 25 % of ₹ 10,560 = ₹ 2,640 (Amount recorded on debit side of Bank A/c) Capital deficiency of Santosh = 10,560 – 2,640 = ₹ 7,920.

₹ 7,920 to be distributed among continuing partner in their profit-loss ratio = 8 : 4 i.e. 2 : 1.

7920 × (2/3) = ₹ 5280

7920 × (1/3) = ₹ 2640.

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