Ganesh and Mahesh are partners sharing profits and losses 3:2. They dissolved the Partnership firm on 31st March, 2009 when their position was as follows. Prepare Realization A/c and Partners Capital A/c and Cash A/c.

Here are the Realization Account, Partners' Capital Accounts, and Cash Account for both questions.

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Q.1. Ganesh and Mahesh

Realization Account

$$\begin{array}{|l|r|l|r|} \hline \textbf{Particulars} & \textbf{Amount (Rs.)} & \textbf{Particulars} & \textbf{Amount (Rs.)} \\ \hline \text{To Debtors} & 22,500 & \text{By Creditors} & 5,000 \\ \text{To Stock} & 45,000 & \text{By Bank Overdraft} & 4,000 \\ \text{To Furniture} & 10,000 & \text{By R.D.D.} & 2,500 \\ \text{To Motor Car} & 15,000 & \text{By Cash A/c (Assets realized):} & \\ \text{To Cash A/c (Liabilities paid):} & & \quad \text{Debtors} & 18,000 \\ \quad \text{Creditors} & 4,500 & \quad \text{Stock} & 40,000 \\ \quad \text{Bank Overdraft} & 4,000 & \text{By Ganesh's Capital A/c (Motor Car)} & 14,000 \\ \text{To Cash A/c (Expenses)} & 1,500 & \text{By Mahesh's Capital A/c (Furniture)} & 12,000 \\ \text{To Partners' Capital A/c (Loss):} & & \text{By Loss transferred to:} & \\ \quad \text{Ganesh (3/5)} & 4,200 & \quad \text{Ganesh} & \\ \quad \text{Mahesh (2/5)} & 2,800 & \quad \text{Mahesh} & \\ \hline \textbf{Total} & \textbf{109,500} & \textbf{Total} & \textbf{109,500} \\ \hline \end{array}$$

Partners' Capital Accounts

$$\begin{array}{|l|r|r|l|r|r|} \hline \textbf{Particulars} & \textbf{Ganesh (Rs.)} & \textbf{Mahesh (Rs.)} & \textbf{Particulars} & \textbf{Ganesh (Rs.)} & \textbf{Mahesh (Rs.)} \\ \hline \text{To Realization A/c (Motor Car)} & 14,000 & - & \text{By Balance b/d} & 46,000 & 30,000 \\ \text{To Realization A/c (Furniture)} & - & 12,000 & \text{By Reserve Fund:} & & \\ \text{To Realization A/c (Loss)} & 4,200 & 2,800 & \quad \text{Ganesh (3/5)} & 3,600 & - \\ \text{To Cash A/c (Final Payment)} & 31,400 & 17,600 & \quad \text{Mahesh (2/5)} & - & 2,400 \\ \hline \textbf{Total} & \textbf{49,600} & \textbf{32,400} & \textbf{Total} & \textbf{49,600} & \textbf{32,400} \\ \hline \end{array}$$

Cash Account

$$\begin{array}{|l|r|l|r|} \hline \textbf{Particulars} & \textbf{Amount (Rs.)} & \textbf{Particulars} & \textbf{Amount (Rs.)} \\ \hline \text{To Balance b/d} & 1,000 & \text{To Realization A/c (Creditors)} & 4,500 \\ \text{To Realization A/c (Assets realized)} & 58,000 & \text{To Realization A/c (Bank Overdraft)} & 4,000 \\ & & \text{To Realization A/c (Expenses)} & 1,500 \\ & & \text{To Ganesh's Capital A/c} & 31,400 \\ & & \text{To Mahesh's Capital A/c} & 17,600 \\ \hline \textbf{Total} & \textbf{59,000} & \textbf{Total} & \textbf{59,000} \\ \hline \end{array}$$

The final payments are: Ganesh: Rs. 31,400, Mahesh: Rs. 17,600.

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Q.2. Ram and Ramesh

Realization Account

$$\begin{array}{|l|r|l|r|} \hline \textbf{Particulars} & \textbf{Amount (Rs.)} & \textbf{Particulars} & \textbf{Amount (Rs.)} \\ \hline \text{To Debtors} & 12,000 & \text{By Creditors} & 8,000 \\ \text{To Stock} & 14,000 & \text{By Cash A/c (Assets realized):} & \\ \text{To Machinery} & 10,000 & \quad \text{Stock} & 16,000 \\ \text{To Bills Receivable} & 9,000 & \quad \text{Machinery} & 12,000 \\ \text{To Copy rights} & 11,000 & \quad \text{Debtors} & 18,000 \\ \text{To Cash A/c (Creditors paid)} & 7,200 & \text{By Ram's Capital A/c (Bills Receivable)} & 9,000 \\ \text{To Cash A/c (Expenses)} & 700 & \text{By Loss transferred to:} & \\ \text{To Partners' Capital A/c (Loss):} & & \quad \text{Ram (2/5)} & 360 \\ \quad \text{Ram (2/5)} & & \quad \text{Ramesh (3/5)} & 540 \\ \quad \text{Ramesh (3/5)} & & & \\ \hline \textbf{Total} & \textbf{63,900} & \textbf{Total} & \textbf{63,900} \\ \hline \end{array}$$

Partners' Capital Accounts

$$\begin{array}{|l|r|r|l|r|r|} \hline \textbf{Particulars} & \textbf{Ram (Rs.)} & \textbf{Ramesh (Rs.)} & \textbf{Particulars} & \textbf{Ram (Rs.)} & \textbf{Ramesh (Rs.)} \\ \hline \text{To Realization A/c (Bills Receivable)} & 9,000 & - & \text{By Balance b/d} & 16,000 & 16,000 \\ \text{To Realization A/c (Loss)} & 360 & 540 & \text{By Reserve Fund:} & & \\ \text{To Cash A/c (Final Payment)} & 12,640 & 24,460 & \quad \text{Ram (2/5)} & 6,000 & - \\ & & & \quad \text{Ramesh (3/5)} & - & 9,000 \\ \hline \textbf{Total} & \textbf{22,000} & \textbf{25,000} & \textbf{Total} & \textbf{22,000} & \textbf{25,000} \\ \hline \end{array}$$

Cash Account

$$\begin{array}{|l|r|l|r|} \hline \textbf{Particulars} & \textbf{Amount (Rs.)} & \textbf{Particulars} & \textbf{Amount (Rs.)} \\ \hline \text{To Balance b/d} & 4,000 & \text{To Realization A/c (Creditors)} & 7,200 \\ \text{To Realization A/c (Assets realized)} & 46,000 & \text{To Realization A/c (Expenses)} & 700 \\ & & \text{To Ram's Loan A/c} & 5,000 \\ & & \text{To Ram's Capital A/c} & 12,640 \\ & & \text{To Ramesh's Capital A/c} & 24,460 \\ \hline \textbf{Total} & \textbf{50,000} & \textbf{Total} & \textbf{50,000} \\ \hline \end{array}$$

The final payments are: Ram: Rs. 12,640, Ramesh: Rs. 24,460.