028 Immediately prior to this conversion the balance sheet of partnership as at 31 December 2012 was as follows: Balance Sheet As on 31st December 2012 Liabilities Assets * Capital accounts Fixed assets Hari 70,000 (at written down value) Lal 30,000 Land & Buildings 50,000 Jay 20.000 1,20,000 Plant & Machinery 30,000 Current accounts Motor vehicles 20,000 Hari 7.000 Current Assets: Lal 5,000 Inventories 60,000 3.000 15,000 Debtors 25,000 Current liabilities Axis Bank account 5.000 Creditors 25,000 Dena Bank account 20.000 45,000 Long-term liabilities Loan-Han 3,000 Loan-Gopi Ltd. 7.000 10,000 1,90,000 1,90,000 Jay The terms of conversion are that Hari Ltd. is to take over the assets and liabilities of Hari Brothers as follows. Valuation for take-over - Land and Building 96,000 Plant and Machinery 28,000 Motor vehicles 15,000 Inventories 60,000 Debtors 24.000 Creditors 25,000 Goodwill 10,000 The closing balance in Axis Bank account is to be transferred to Dena Bank account before al the other dissolution entries are effected in the partnership ledgers. Lal took over one of the motor vehicles at an agreed amount of 2,000. All other liabilities were paid from the Dena Bank account The purchase consideration is discharged by an issue at par of 60,000 10% Debentures (fully paid) to the partners in their capital account proportions as shown in the above balance sheet plus equity shares in Hari Ltd. of 1 Bach (fully paid to make up the balance due to each partner) You are required to ( prepare (a) Realisation Account (b) Partners' Capital Accounts (c) Bank account of Axis Bank and Dena Bank in the books of Hari Brothers: (W) 'Business purchase account' and 'Harl Brothers' account in Hari Lid.'s books W' ! 028 Immediately prior to this conversion the balance sheet of partnership as at 31 December 2012 was as follows: Balance Sheet As on 31st December 2012 Liabilities Assets * Capital accounts Fixed assets Hari 70,000 (at written down value) Lal 30,000 Land & Buildings 50,000 Jay 20.000 1,20,000 Plant & Machinery 30,000 Current accounts Motor vehicles 20,000 Hari 7.000 Current Assets: Lal 5,000 Inventories 60,000 3.000 15,000 Debtors 25,000 Current liabilities Axis Bank account 5.000 Creditors 25,000 Dena Bank account 20.000 45,000 Long-term liabilities Loan-Han 3,000 Loan-Gopi Ltd. 7.000 10,000 1,90,000 1,90,000 Jay The terms of conversion are that Hari Ltd. is to take over the assets and liabilities of Hari Brothers as follows. Valuation for take-over - Land and Building 96,000 Plant and Machinery 28,000 Motor vehicles 15,000 Inventories 60,000 Debtors 24.000 Creditors 25,000 Goodwill 10,000 The closing balance in Axis Bank account is to be transferred to Dena Bank account before al the other dissolution entries are effected in the partnership ledgers. Lal took over one of the motor vehicles at an agreed amount of 2,000. All other liabilities were paid from the Dena Bank account The purchase consideration is discharged by an issue at par of 60,000 10% Debentures (fully paid) to the partners in their capital account proportions as shown in the above balance sheet plus equity shares in Hari Ltd. of 1 Bach (fully paid to make up the balance due to each partner) You are required to ( prepare (a) Realisation Account (b) Partners' Capital Accounts (c) Bank account of Axis Bank and Dena Bank in the books of Hari Brothers: (W) 'Business purchase account' and 'Harl Brothers' account in Hari Lid.'s books W