C, D, E were partners in a firm sharing profits in the ratio of 3 :1:1.

Their Balance Sheet as at 31st March,2022 was as follows:

Balance Sheet of C, D and E as at 31st March, 2022

Liabilities Amount
Assets Amount
Capitals: Machinery 3,20,000
C 4,00,000 Investments 3,00,000
D 2,00,000 Stock 2,00,000
E 1,00,000 7,00,000 Debtors 1,00,000
C’s Loan 1,20,000 Cash at Bank 2,00,000
Sundry Creditors 1,00,000
Bills Payable 2,00,000
11,20,000 11,20,000

On the above date the firm was dissolved due to certain disagreement among the partners:

(i) Machinery of 3,00,000 were given to creditors in full settlement of their account and remaining machinery was sold for 10,000. 

(ii) Investments realised 2,90,000.

(iii) Stock was sold for 1,80,000.

(iv) Debtors for 20,000 proved bad.

(v) Realisation expenses amounted to 10,000.


Prepare Realisation Account.

Marks-6, CBSE:2022-23/Zone-5/Set-1/Q-25

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