Madhavan, Chatterjee and Pillai were partners in a firm sharing profits and losses in ratio of 2 : 1 : 2. On 31st March, 2024, their Balance Sheet was as follows:
Balance Sheet of Madhavan, Chatterjee and Pillai as at 31st March,2024
| Liabilities | Amount (₹) | Assets | Amount (₹) | ||
|---|---|---|---|---|---|
| Creditors | 1,10,000 | Cash at Bank | 4,05,000 | ||
| Outstanding Expenses | 17,000 | Stock | 2,20,000 | ||
| Mrs. Madhavan’s Loan | 2,00,000 | Debtors | 95,000 | ||
| Chatterjee’ Loan | 1,70,000 | Less: Provision for Doubtful Debts |
5,000 |
90,000 |
|
| Capitals : | Land and Building | 1,82,000 | |||
| Madhavan | 2,00,000 | Plant and Machinery | 1,00,000 | ||
| Chatterjee | 1,00,000 | ||||
| Pillai | 2,00,000 | 5,00,000 | |||
| Total | 9,97,000 | Total | 9,97,000 | ||
On the above date, the firm was dissolved and the following transactions took place:
- Debtors were taken over by the creditors in full settlement of their account.
- Madhavan agreed to pay Mrs. Madhavan’s loan.
- 50% of the stock was taken over by Chatterjee at 10% less than the book value. The remaining stock was sold at a profit of 20%.
- Land and Building was taken over by Pillai for ₹10,00,000 and Plant and Machinery was sold as scrap for ₹20,000.
- Realisation expenses ₹17,000 were paid by cheque.
Prepare Realisation Account.
Marks-6, CBSE: 2024-25/Zone-5/Set-1/Q-25
Answer :
