P, Q and R were partners in a firm sharing profits in the ratio of 1 : 2 : 2. Their Balance Sheet as at 31st March 2024 was as follows:
P, Q and R were partners in a firm sharing profits in the ratio of 1 : 2 : 2. Their Balance Sheet as at 31st March 2024 was as follows:
| Liabilities | ₹ | Assets | ₹ |
| Creditors | 1,20,000 | Land and Building | 5,00,000 |
| Outstanding Expenses | 10,000 | Office Equipment | 30,000 |
| Bank Overdraft | 20,000 | Stock | 3,50,000 |
| Q’s Loan | 50,000 | Investments | 50,000 |
|
Capitals: P Q R |
2,00,000 4,00,000 4,00,000 |
Debtors 2,00,000 Less: Provision for doubtful Debts 8,000 |
1,92,000 |
| Â | Â | Computer Software | 20,000 |
| Â | Â | Prepaid Expenses | 51,000 |
| Â | Â | Cash at Bank | 7,000 |
| Â | 12,00,000 | Â | 12,00,000 |
On the above date the firm was dissolved. You are given the following information:
(i) Office Equipment was accepted by a Creditors of ₹ 25,000 in full settlement.
(ii) Q’s Loan was paid alongwith unrecorded interest of ₹ 6,000.
(iii) Land and Building were realised at ₹ 6,00,000; Stock at 80% and debtors at 90%.
Prepare Realisation Account.
[Ans. Loss on Realisation ₹ 20,000.]
Anurag Pathak Answered question 3 days ago
