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