Pradeep and Paresh partners in a firm decided to dissolve their partnership firm on 1st April, 2024. Pradeep was deputed to realise the assets and to pay off the liabilities

Pradeep and Paresh partners in a firm decided to dissolve their partnership firm on 1st April, 2024. Pradeep was deputed to realise the assets and to pay off the liabilities. He was paid ₹ 10,000 as commission for his services. Balance Sheet of the firm on 31st March, 2024 was as follows:

Balance Sheet as at 31st March, 2024

Liabilities	₹	Assets		₹
Sundry Creditors Mrs. Pradeep’s Loan Paresh’s Loan Investment Fluctuation Reserve Capital A/cs: Pradeep Paresh	1,29,400 40,000 24,000 8,000 1,21,000 1,21,000	Building Investment Debtors Less: Provision for Doubtful Debts Bank Profit & Loss A/c Goodwill	71,400 4,000	3,00,000 30,000 67,400 16,000 20,000 10,000
	4,43,400			4,43,400

Following terms and conditions were agreed upon: (a) Pradeep agreed to pay his wife’s loan. (b) Investment was given to Paresh for ₹ 27,000. (c) BUilding realised ₹ 3,50,000. (d) Creditors were to be paid after two months, they were paid immediately at 10% p.a. discount. (e) Realisation expenses were ₹ 2,500. Prepare Realisation Account. [Ans.: Realisation Gain – ₹ 38,657; Payment to Creditors – ₹ 1,27,243.]