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