Ravi, Kavi and Chand were partners sharing profits in the ratio of 5 : 3 : 2. On 31st March, 2022, their Balance Sheet was as follows:

Balance Sheet of Ravi, Kavi and Chand as on 31st March, 2022

Liabilities Amount
Assets Amount
Sundry Creditors 70,000 Land 3,50,000
Chand’s Loan 20,000 Stock 3,00,000
Mrs. Chand’s Loan 20,000 Debtors 2,00,000
Capitals: Less: Provision 10,000 1,90,000
Ravi 4,00,000 Cash 70,000
Kavi 3,00,000
Chand 1,00,000 8,00,000
9,10,000 9,10,000

The firm was dissolved on the above date.

(i) Land and Building and Stock were sold for 6,00,000. Debtors were realised at 10% less than the book value.

(ii) Mrs. Chand’s loan was settled by giving her a computer of 22,000 not recorded in the books.

(iii) Ravi paid off one of the creditors 20,000 in settlement of his amount of 30,000.

(iv) Remaining creditors were paid in cash.


Prepare Realisation Account.

Marks-4, CBSE:2022-23/Zone-3/Set-1/Q-22

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