Anurag and Prem were partners sharing profits and losses in 2 : 1. On 31st March, 2023 their Balance Sheet was as follows:
Anurag and Prem were partners sharing profits and losses in 2 : 1. On 31st March, 2023 their Balance Sheet was as follows:
| Liabiliities | ₹ | Assets | ₹ |
| Sundry Creditors | 60,000 | Bank | 83,000 |
| Mrs Anurag’s Loan | 80,000 |
Sundry Debtors 60,000 Less: Provision for Doubtful Debts 3,000 |
57,000 |
| Anurag’s Loan | 50,000 | Stock | 1,00,000 |
| Workmen’s Compensation Reserve | 1,20,000 | Furniture | 20,000 |
| Investment Fluctuation Reserve | 10,000 | Plant | 4,00,000 |
| Profit and Loss | 5,000 | Investments | 45,000 |
| Capitals: Anurag Prem | 3,50,000 45,000 | Advertisement Expenses | 15,000 |
| Â | 7,20,000 | Â | 7,20,000 |
The firm was dissolved on the above date: (i) Anurag took over 60% of the stock at a discount of 20%; 25% of the remaining stock was sold at a profit of 40% on cost; Remaining stock was found obsolete and realised nothing. (ii) Firm had to pay ₹ 90,000 as compensation to workers. (iii) Sundry Creditors took over investments in full settlement. (iv) Sundry Debtors realised at 75% and plant realised 20% less. (v) Prem agreed to take over the responsibility of completing dissolution work and he was given furniture as his remuneration. (vi) Realisation expenses amounted to ₹ 10,000. Prepare Realisation Account.
[Ans. Loss on Realisation ₹ 1,35,000.]
Anurag Pathak Answered question 3 days ago
