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
|Profit and Loss A/c||2,000||Debtors 2,00,000|
|Capitals:||Less: Provision for
doubtful debts 5,000
|D 2,00,000||17,00,000||Land and Building||11,00,000|
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.