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 |
1,95,000 |
|
| 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*