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.
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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.
Attachments:
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