Mitesh, Samir and Ajay were partners sharing profits and losses in proportion to their capitals, which on 31st March, 2023, stood at:

Mitesh - ₹ 1,50,000
Samir - ₹ 1,00,000
Ajay - ₹ 50,000

The firm’s recorded liabilities on that date amounted to ₹ 1,00,000.
In addition:

• Ajay had given a loan of ₹ 40,000 to the firm on which he was entitled to receive interest @ 6% per annum for the whole year.
• A Bills Receivable of ₹ 40,000 discounted with the bank was dishonoured on 31st March, 2023.

The partners dissolved their partnership firm on 31st March, 2023, and the assets, apart from cash of ₹ 30,000, realised ₹ 6,00,000.

Expenses of dissolution amounting to ₹ 12,500 were to be borne by Samir. These were paid by the firm on his behalf.
You are required to prepare:

(i) Realisation Account.
(ii) Ajay’s Loan Account.

Solution

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