Illustration 2 Sita, Rita and Meeta are partners sharing profit and losses in the ratio of 2:2:1 Their balance sheet as on March 31, 2017 is as follows: Balance Sheet of Sita, Rita and Meeta as on March 31, 2017 Amount Assets (Rs.) Liabilities General Reserve Creditors Capitals: Sita Rita Meeta 5,000 2,000 1,000 2,500 2,000 8,000 12,500 Cash at bank Stock Furniture Debtors Plant and Machinery Amount (Rs.) 2,500 2,500 1,000 2,000 4,500 12,500 They decided to dissolve the business. The following amounts were realised: Plant and Machinery Rs.4,250, Stock Rs.3,500, Debtors Rs. 1850, Furniture 750. Sita agreed to bear all realisation paid by the firm expenses. For the service Sita is paid Rs.60. Actual expenses on realisation paid by the firm amounted to Rs.450.Creditors paid 2% less. There was an unrecorded assets of Rs.250, which was taken over by Rita at Rs.200. Prepare the necessary accounts to close the books of the firm.

Illustration 2 Sita, Rita and Meeta are partners sharing profit and losses in the ratio of 2:2:1 Their balance sheet as on March 31, 2017 is as follows: Balance Sheet of Sita, Rita and Meeta as on March 31, 2017 Amount Assets (Rs.) Liabilities General Reserve Creditors Capitals: Sita Rita Meeta 5,000 2,000 1,000 2,500 2,000 8,000 12,500 Cash at bank Stock Furniture Debtors Plant and Machinery Amount (Rs.) 2,500 2,500 1,000 2,000 4,500 12,500 They decided to dissolve the business. The following amounts were realised: Plant and Machinery Rs.4,250, Stock Rs.3,500, Debtors Rs. 1850, Furniture 750. Sita agreed to bear all realisation paid by the firm expenses. For the service Sita is paid Rs.60. Actual expenses on realisation paid by the firm amounted to Rs.450.Creditors paid 2% less. There was an unrecorded assets of Rs.250, which was taken over by Rita at Rs.200. Prepare the necessary accounts to close the books of the firm.

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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