question_answer

Sagar, Mayank and Rohit commenced business on 1st April, 2016 with capitals of Rs. 2,00,000, Rs. 1,60,000 and Rs. 1,20,000 respectively. They agreed to share profits and losses in the ratio of 4 : 3 : 3. During the year 2016-17, they made a profit of Rs. 98,000 before allowing interest on capital @10% p.a. The profit for the year 2017-18 was Rs. 1,20,000 after allowing interest on capital. Each of the partners had drawn Rs. 20,000 p.a. The partners with mutual consent agreed to wind up the business operations. Creditors on that date were Rs. 20,200. Assets realised Rs. 4,20,000 and the expenses. realisation were Rs. 5,000. Prepare the balance sheet as on 31st March, 2018 and Find out the profit or loss on realisation.

Answer:

Statement showing the Amount of Capital as on 31st March, 2018

Particulars	Sagar (Rs.)	Mayank (Rs.)	Rohit (Rs.)
Capital Balance as on 1st April, 2016	2,00,000	1,60,000	1,20,000
(+) Interest on Capital	20,000	16,000	12,000
(+) Profit (98,000- 48,000)	20,000	15,000	15,000
	2,40,000	1,91,000	1,47,000
(-) Drawings	(20,000)	(20,000)	(20,000)
Capital Balance as on 1st April, 2017	2,20,000	1,71,000	1,27,000
(+) Interest on Capital	22,000	17,100	12,700
(+) Profit	48,000	36,000	36,000
	2,90,000	2,24,100	1,75,700
(-) Drawings	(20,000)	(20,000)	(20,000)
Capital Balance as on 31st March, 2018	2,70,000	2,04,100	1,55,700

Balance Sheet as at 31st March, 2018

Liabilities		Amt (Rs.)	Assets	(Amt (Rs.)
Capital			Sundry Assets	6,50,000
Sagar	2,70,000		(Balancing figure)
Mayank	2,04,100
Rohit	1,55,700	6,29,800
Creditors		20,200
		6,50,000		6,50,000

DrRealisation AccountCr

Particulars	Amt (Rs.)	Particulars		Amt (Rs.)
To Sundry Assets	6,50,000	By Sundry Liabilities		20,200
To Cash - Creditors	20,200	By Cash (Assets realized)		4,20,000
To Cash ? Expenses	5,000	By Loss Transferred to Capital A/c
		Sagar	94,000
		Mayank	70,500
		Rohit	70,500	2,35,000
	6,75,200			6,75,200