Susan, Geeta and Rashi are partners sharing profits and losses in the ratio of 5 : 3 : 2. Their Balance Sheet as at 31st March, 2017, is as under:
Susan, Geeta and Rashi are partners sharing profits and losses in the ratio of 5 : 3 : 2. Their Balance Sheet as at 31st March, 2017, is as under:
Balance Sheet of Susan, Geeta and Rashi as at 31st March, 2017
| Â | Â | Â | Â |
| Sundry Creditors | 50,000 | Cash at Bank | 70,000 |
| Workmen Compensation Reserve | 25,000 |
Sundry Debtors 65,000 Less: Provision for Doubtful Debts (5,000) |
60,000 |
| Employees Provident Fund | 5,000 | Goodwill | 50,000 |
| Bank Loan | 55,000 | Furniture | 1,00,000 |
| Capital A/cs Susan Geeta Rashi | 2,20,000 1,70,000 1,35,000 | Building | 3,80,000 |
| Â | 6,60,000 | Â | 6,60,000 |
The partners decided to dissolve their partnership on 31st March, 2017.
The following transactions took place at the time of dissolution:
(a) Realization expenses of ₹ 2,000 were paid by Susan on behalf of the firm.
(b) Geeta took over the goodwill for her own business at ₹ 40,000.
(c) Building was taken over by Rashi at ₹ 3,00,000.
(d) Only 80% of the debtors paid their dues.
(e) Furniture was sold for ₹ 97,000.
(f) Bank Loan was settled along with interest of ₹ 5,000.
You are required to prepare the Realization Account.
[Ans. Loss on Realisation ₹ 1,08,000.]
Anurag Pathak Answered question October 8, 2024
