Question 9:
PRACTICAL PROBLEMS
(When one partner becomes insolvent)
Rahul, Rohit and Ramesh were partners in a firm sharing profit and losses in the ratio of 2:2:1 respectively.
The Balance Sheet as on 31st March, 2012 was as follows:
Balance Sheet as on 31st December, 2011
The firm was dissolved on the above date:
1) The Assets realised as follows:
Debtors Rs 9,000, Plant and Machinery Rs 26,000, Stock Rs 14,000 and Furniture Rs 3,000.
2) The Creditors were paid Rs 18,000 in full settlement and the bills payable were paid in full.
3) The realisation expenses amounted to Rs 3,000.
4) Ramesh become insolvent and was able to bring in only Rs 1,800 from his private estate.
Prepare:
1) Realisation A/c
2) Bank A/c and
3) Partner’s Capital A/c
Capital Deficiency of Rs 4,000 to be distributed between Rahul and Rohit (Solvent Partners) in the ratio 2:2.
Rahul's Share = 4000 x 1/2 = Rs. 2000
Rohit's Share = 4000 x 1/2 = Rs. 2000
