Raman and Richa were partners in a firm sharing profits in the ratio of 7 : 3. On 31.3.2024 the Balance Sheet of the firm was as follows:
Raman and Richa were partners in a firm sharing profits in the ratio of 7 : 3. On 31.3.2024 the Balance Sheet of the firm was as follows:
Balance Sheet of Raman and Richa as at 31.3 2024
| Liabilities | ₹ | Assets | ₹ |
| Capitals: Raman Richa |
7,00,000 3,00,000 |
Land and Building | 7,50,000 |
| Sundry Creditors | 1,75,000 | Furniture | 1,20,000 |
| Â | Â | Debtors | 1,32,000 |
| Â | Â | Stock | 1,03,000 |
| Â | Â | Cash | 70,000 |
| Â | 11,75,000 | Â | 11,75,000 |
The firm was dissolved on 1.4.2024 and the assets and liabilities were settled as follows:
(i) Land and building was taken over by Raman at a depreciation of 10% for cash;
(ii) Creditors of ₹ 1,25,000 took over stock and debtors in full settlement of their claim:
(iii) Remaining creditors were paid by Richa;
(iv) Furniture realised ₹ 5,000 less than the book value.
(v) Expenses of realisation were ₹ 400.
Prepare Realisation Account in the books of the firm.
[Ans. Loss on Realisation ₹ 1,90,400.]
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