Pradeep and Rajesh were partners in a firm sharing profits and losses in the ratio of 3 : 2. They decided to dissolve their partnership firm on 31st March, 2018.
Pradeep and Rajesh were partners in a firm sharing profits and losses in the ratio of 3 : 2. They decided to dissolve their partnership firm on 31st March, 2018. Pradeep was deputed to realise the assets and to pay off the liabilities. He was paid ₹ 1,000 as commission for his services. The financial position of the firm on 31st March, 2018 was as follows:
| Liabilities | ₹ | Assets | ₹ |
| Creditors
Mrs. Pradeep’s Loan Rajesh’s Loan Investment Fluctuation Fund Capital A/cs: Pradeep Rajesh |
80,000
40,000 24,000 8,000 42,000 42,000 |
Building
Investment Debtors Bills Receivable Bank Profit & LOss A/c Goodwill |
1,20,000
30,600 30,000 37,400 6,000 8,000 4,000 |
| 2,36,000 | 2,36,000 |
Following terms and conditions were agreed upon:
(a) Pradeep agreed to pay his wife’s loan.
(b) Half of the debtors realised ₹ 12,000 and remaining debtors were used to pay 25% of the creditors.
(c) Investment sold to Rajesh for ₹ 27,000.
(d) Building realised ₹ 1,52,000.
(e) Remaining creditors were to be paid after two months, they were paid immediately at 10% p.a. discount.
(f) Bill receivables were settled at a loss of ₹ 1,400.
(g) Realisation expenses amounted to ₹ 2,500.
Prepare Realisation Account.
[Ans.: Realisation Gain – ₹ 30,500; Payment to Creditors – ₹ 59,000.]
Anurag Pathak Changed status to publish July 31, 2023
