Question

Harish and Gopal were partners in a firm sharing profits in the ratio of

3 : 2. On 31st March, 2018, their Balance Sheet was as follows :

Balance Sheet of Harish and Gopal as at March 31, 2018

Liabilities Amount Assets Amount

(`) (`)

Creditors 36,000 Cash 47,000

Outstanding expenses 10,000 Bank 93,000

Gopal’s wife’s loan 50,000 Debtors 76,000

Capitals :

Harish 2,80,000

Gopal 1,60,000 4,40,000

Stock 2,00,000

Furniture 20,000

Leasehold premises 1,00,000

5,36,000 5,36,000

On the above date the firm was dissolved. The various assets were

realized and liabilities were settled as under :

(i) Gopal agreed to pay his wife’s loan.

(ii) Leasehold premises realised ` 1,50,000 and Debtors ` 12,000 less.

(iii) Half of the creditors agreed to accept furniture of the firm as full

settlement of their claim and remaining half agreed to accept 10%

less.

(iv) 50% stock was taken over by Harish on payment by cheque of

` 90,000 and remaining stock was sold for ` 94,000.

(v) Realization expenses of ` 10,000 were paid by Gopal on behalf of the

firm.

Prepare Realization Account.​

Answer 1

Gain on realisation 21800

Explanation:

Answer 2

Realisation A/c

Explanation:

Plz check the attached pic for the preparation of Realisation A/c.