A and B are partners sharing profits and losses equally. On 31st March, 2021, they decided to dissolve their firm. On the date of dissolution, their Balance Sheet was as under:
Balance Sheet of A and B as at 31st March, 2021
| Liabilities | Amount ₹ |
Assets | Amount ₹ |
|---|---|---|---|
| Creditors | 3,00,000 | Bank | 3,00,000 |
| A’s Loan | 60,000 | Stock | 2,40,000 |
| Mrs. A’s Loan | 70,000 | Furniture | 2,00,000 |
| Capitals: | Plant and Machinery | 1,00,000 | |
| A 2,30,000 | Profit & Loss A/c | 50,000 | |
| B 2,30,000 | 4,60,000 | ||
| 8,90,000 | 8,90,000 |
The assets were realised and liabilities were paid as under:
(i) Creditors were paid at 20% less.
(ii) Furniture was taken over by A for ₹1,80,000 and Plant and Machinery was sold for ₹80,000.
(iii) B took over the stock at ₹1,80,000.
(iv) A promised to pay Mrs. A’s Loan.
(v) Realisation expenses of ₹20,000 were paid by B.
Prepare Realisation Account.
Marks-5, CBSE:2021-22/Term-2/Zone-2/Set-1/Q-7*