From the information provided below, calculate various questions asked in questions.
Following is the Balance Sheet of Ashwani and Bharat on March 31, 2024.
Balance Sheet Ashwani and Bharat as on March 31, 2024
|
Liabilities |
Amount (₹) |
Assets |
Amount (₹) |
| Creditors | 76,000 | Cash at bank | 17,000 |
| Mrs. Ashwani's loan | 10,000 | Stock | 10,000 |
| Mrs. Bharat loan | 20,000 | Investments | 20,000 |
| Investment fluctuation reserve | 2,000 | Debtors- 40,000 Less: Provision for doubtful debts 4,000 |
36,000 |
| General Reserve | 20,000 | Buildings | 70,000 |
| Capitals: Ashwani- 20,000 Bharat - 20,000 |
40,000 | Goodwill | 15,000 |
| Total | 1,68,000 | Total | 1,68,000 |
The firm was dissolved on that date. The following was agreed transactions took place.
(i) Aswhani promised to pay Mrs. Ashwani's loan and took away stock for ₹8,000.
(ii) Bharat took away half of the investment at 10% less. Debtors realised for ₹38,000. Creditor's were paid at less of ₹380. Buildings realised for ₹1,30,000, Goodwill ₹12,000 and the remaining Investment were sold at ₹9,000. An old typewriter not recorded in the books was taken over by Bharat for ₹600. Realisation expenses amounted to ₹2,000.
Realisation profit of ₹55,980 to be distributed amongst partners is:
Answer & explanation
Correct answer: option 2
The correct answer is Option (2) → Ashwani’s capital ₹27,990, Bharat’s Capital ₹27,990
The profit on realisation is shared by the partners in their profit sharing ratio. No ratio is given for Ashwani and Bharat, so under the Partnership Act they share equally.
Realisation profit = ₹55,980
Ashwani’s share = ₹55,980 × 1/2 = ₹27,990
Bharat’s share = ₹55,980 × 1/2 = ₹27,990
The entry is Realisation A/c Dr. ₹55,980 To Ashwani’s Capital A/c ₹27,990 and To Bharat’s Capital A/c ₹27,990.
NCERT (2026-27 edition):
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