C, D and E were partners in a firm sharing profits in the ratio of 3 : 1 : 1. Their Balance Sheet as at 31st March, 2022 was as follows
C, D and E were partners in a firm sharing profits in the ratio of 3 : 1 : 1. Their Balance Sheet as at 31st March, 2022 was as follows:
Balance sheet of C, D and E as at 31st March, 2022
| Liabilities | ₹ | Assets | ₹ |
|
Capital A/cs: C D E C’s Loan Sundry Creditors Bills Payable |
4,00,000 2,00,000 1,00,000 1,20,000 1,00,000 2,00,000 |
Machinery Investments Stock Debtors Cash at Bank |
3,20,000 3,00,000 2,00,000 1,00,000 2,00,000 |
| Â | 11,20,000 | Â | 11,20,000 |
On the above date, the firm was dissolved due to certain disagreement among the partners.
(I) Machinery of ₹ 3,00,000 were given to creditors in full settlement of their account and remaining machinery was sold for ₹ 10,000.
(ii) Investments realised ₹ 2,90,000.
(iii) Stock was sold for ₹ 1,80,000.
(iv) Debtors for ₹ 20,000 proved bad.
(v) Realisation expenses amounted to ₹ 10,000.
Prepare Realisation Account.
[Ans.: Loss on Realisation – ₹ 2,70,000.]
Anurag Pathak Answered question June 10, 2024
