B, C and D were partners in a firm sharing profits and losses in the ratio of 2 : 2 : 1. On 31st March, 2022 their Balance Sheet was as follows:

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

Liabilities Amount
Assets Amount
Sundry Creditors 1,20,000 Bank 17,000
Profit and Loss A/c 2,000 Debtors       2,00,000
Capitals: Less: Provision for
doubtful debts       5,000

B       13,00,000 Stock 4,50,000
C       2,00,000 Furniture 60,000
D       2,00,000 17,00,000 Land and Building 11,00,000
18,22,000 18,22,000

On the above date the firm was dissolved. The Assets were realised and the Liabilities were paid off as follows:

(i) Debtors were sold to a debt collection agency at 10% less than the book value.

(ii) Stock 2,00,000 was taken over by B at 90,000 less than its book value and the remaining stock realised 1,80,000.

(iii) Furniture was taken over by C for 65,000.

(iv) Creditors were paid 10% less in full settlement of their amount.

(v) Land and Building realised 18,00,000.

(vi) B was assigned the work of dissolution for which he was to be paid 40,000.

Prepare Realisation Account.

Marks-5, CBSE:2021-22/Compartment/Q-7*

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