Anitha and Sunitha are equal partners. Their Balance Sheet on 31.03.2025 is as under :
a) Assets realised as follows :
Debtors ₹ 30,000 ; Bills Receivable ₹ 12,000 ; Computers ₹ 25,000 ; Machinery ₹ 45,000 ; Land ₹ 85,000 ; and Unrecorded investment ₹ 3,000
b) Liabilities are paid in full.
c) Cost of dissolution amounted to ₹ 6,000.
Prepare :
i) Realisation Account,
ii) Partners' Capital Accounts and
iii) Bank Account.
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Be very careful with names on the liability side. "Vanitha" is not a partner (Anitha and Sunitha are). Therefore, her loan is treated exactly like creditors and transferred to the Realisation Account. Only a \textit{partner's} loan is kept separate.
Step 1: Understanding the Concept:
On the dissolution of a firm, all assets (except cash/bank) are transferred to the Realisation Account to be sold, and all external liabilities are transferred to be paid off. The resulting profit or loss is shared by partners in their profit-sharing ratio.
Step 2: Detailed Explanation: Working Notes:
1. \textit{Treatment of Vanitha's Loan:} The partners are Anitha and Sunitha. Vanitha is a third party. Thus, Vanitha's Loan is an external liability and must be transferred to the Realisation Account and paid off.
2. \textit{Profit Sharing Ratio:} Equal (1:1).
3. \textit{Total Assets Realised:} 30,000 + 12,000 + 25,000 + 45,000 + 85,000 + 3,000 = ₹ 2,00,000.
4. \textit{Total Liabilities Paid:} Creditors (40,000) + Bills Payable (20,000) + Vanitha's Loan (25,000) = ₹ 85,000.
Step 3: Final Answer: ii) Partners' Capital Accounts
