Raja, Rajan and Rajani were partners in a firm sharing profits and losses in the ratio of 2:2:1. On 31st March, 2024, their Balance Sheet was as follows:
Balance Sheet of Raja, Rajan and Rajani as at 31st March, 2024
| Liabilities | Amount (₹) | Assets | Amount (₹) | ||
|---|---|---|---|---|---|
| Capitals: | Land and Building | 9,00,000 | |||
| Raja | 3,00,000 | Plant and Machinery | 6,00,000 | ||
| Rajan | 4,00,000 | Furniture | 1,20,000 | ||
| Rajani | 5,00,000 | 12,00,000 | Debtors | 80,000 | |
| General Reserve | 1,60,000 | Less: Provision for doubtful debts | 8,000 |
72,000 |
|
| Creditors | 80,000 | Bills Receivables | 18,000 | ||
| Raja Loan | 3,00,000 | Stock | 1,00,000 | ||
| Mrs. Raja Loan | 1,90,000 | Bank | 1,30,000 | ||
| Outstanding Wages | 10,000 | ||||
| 19,40,000 | 19,40,000 | ||||
On the above date, the firm was dissolved. Assets were realised and liabilities were paid off as follows :
(i) Land and Building was sold for ₹20,00,000.
(ii) Plant and Machinery realised ₹40,000 less than their book value and furniture was taken over by the creditors in full settlement of their account.
(iii) Debtors and Bills Receivable realised ₹90,000.
(iv) 60% of the stock was taken over by Raja at 90% of the book value and the remaining stock realised at ₹44,000.
(v) Outstanding wages were paid in full.
(vi) Mrs. Raja loan was paid with interest of ₹10,000.
(vii) Realisation expenses were ₹8,000.
Prepare Realisation Account.
Marks-6, CBSE: 2024-25/Zone-7/Set-1/Q-25
Answer :
