18. Hemant and Pankaj were partners sharing Profit & Loss in the ratio of 3:2. The firm was dissolved on March 31, 2024 and the following balances were appearing in the books of the firm.
a. Hemant’s Loan Rs 80,000
b. Ruby’s Loan Rs 50,000
c. Creditors Rs 1,00,000
d. Capital Balances after all adjustments – Hemant Rs 1,60,000 and Pankaj – Rs 1,40,000
Assets of the firm realised at Rs 6,00,000. You are required to show the amounts and order of payments as per section 48 of Indian Partnership Act 1932 at the time of Dissolution of the firm.
Solution :-
First: – Rs.1,00,000 paid to Creditors and Rs.50,000 paid to Ruby respectively.
Second:- Rs.80,000 paid to Hemant next
Third:- Capital Balances of Hemant and Pankaj Rs.1,60,000 and Rs.1,40,000 paid to partners along with Surplus of Rs.70,000 paid to partners Hemant and Pankaj as Rs.42,000 and Rs.28,000 i.e. in profit sharing ratio.