Question

Ramesh and Umesh were partners in a firm sharing profits in the ratio of their capitals. On 31st March, 2013, their Balance Sheet was as follows :
On the above date the firm was dissolved.
(a) Ramesh took over 50% of stock at ₹ 10,000 less then the book value. The remaining stock was sold at a loss of ₹ 15,000. Debtors were realised at a discount of 5%.
(b) Furniture was taken over by Umesh for ₹ 50,000 and machinery was sold for ₹ 4,50,000.
(c) Creditors were paid in full.
(d) There was an unrecorded bill for repairs for ₹ 1,60,000 which was settled at ₹ 1,40,000.
Prepare Realisation Account.

Answer 1

The Realisation Account are prepared below:

Answer:

Particulars (Dr.)

To Sundry Assets A/c

• Debtors  - Rs. 2,40,000
• Stock  - Rs. 1,30,000
• Furniture  - Rs. 2,00,000
• Machinery - Rs. 9,30,000

Total = Rs. 15,00,000

To Cash A/c (Liabilities)

• Creditors - Rs. 1,70,000
• Outstanding Bill  - Rs. 1,40,000

Total = Rs. 3,10,000

Adding Sundry assets A/c and Cash A/c

= Rs. 15,00,000 + Rs. 3,10,000 = Rs. 18,10,000

Particulars (Cr.)

By Creditors A/c - Rs.1,70,000

By Ramesh's Current A/c (stock)-Rs.55,000

By Cash A/c (Assets)

• Stock  -Rs. 50,000
• Machinery  - Rs. 4,50,000
• Debtors  - Rs. 2,28,000

Total = Rs. 7,28,000

By Umesh's Current A/c (Furniture) = Rs. 50,000

By Realistion Loss:

• Ramesh's Current A/c  - Rs. 5,64,900
• Umesh's Current A/c - Rs. 2,42,100

Total = Rs. 8,07,000

Adding Creditors A/c, Ramesh's Current A/c (stock), Cash A/c, Umesh's Current A/c (Furniture) and the Realistion Loss, we get

= Rs.1,70,000 + Rs.55,000 + Rs. 7,28,000 + Rs. 50,000 + Rs. 8,07,000

= Rs. 18,10,000.