Question

Ms. Neerja, who runs a computer stationery store, has the following transactions. Please
help her with the cashbook for her operations.
On 1st of January, 2014, she has Rs 22,500/- in cash and Rs 40,000 in bank account.
On 5th January, 2014, she makes a cash sale of Rs 19,500.
On 7th January, 2014, she receives a cheque for 16,000 from Excel Company for sales made in December.
On 9th January, 2014, she buys CDs and pendrives and makes a cheque payment of Rs 5,000
On 12th January, 2014, she makes cash payment of Rs 25,000 for various stationery purchased.
On 17th January, 2014, she withdraws cash of Rs 15,000 from her checking account.
On 18th January, 2014, she pays salary of Rs 25,000 to her sales staff.
On 24th January, 2014, she pays the monthly rent of Rs 12,500 by cheque.
On 29th January, 2014, she deposits Rs 25,000 in her bank account.

Answer 1

Answer:

When the firm is dissolved, its books of account are to be closed and the profit or

loss arising on realisation of its assets and discharge of liabilities is to be

computed. For this purpose, a Realisation Account is prepared to ascertain the

net effect (profit or loss) of realisation of assets and payment of liabilities which

may be is transferred to partner’s capital accounts in their profit sharing ratio.

Hence, all assets (other than cash in hand bank balance and fictitious assets, if

any), and all external liabilities are transferred to this account. It also records

the sale of assets, and payment of liabilities and realisation expenses. The balance

in this account is termed as profit or loss on realisation which is transferred to

partners’ capital accounts in thier profit sharing ratio (