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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.]
Anurag Pathak Answered question June 10, 2024
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