Aadish and Shreyansh were partners in a firm sharing profits and losses in the ratio of 3 : 2. On 31st March, 2022 their Balance Sheet was as follows:

Balance Sheet of Aadish and Shreyansh as at 31st March, 2022

Liabilities Amount
Assets Amount
Creditors 90,000 Cash at Bank 20,000
Mrs. Aadish’s Loan 30,000 Stock 24,000
Shreyansh’s Loan 30,000 Investments 30,000
General Reserve 45,000 Debtors       20,000
Capitals: Less: Provision for
Doubtful Debts       2,000

Aadish       1,00,000 Plant 1,00,000
Shreyansh       97,000 1,97,000 Advertisement Suspense A/c 2,00,000
3,92,000 3,92,000

The firm was dissolved on 31st March, 2022 on the following terms:

(i) Debtors realised 17,000 and plant realised 10% more than the book value.

(ii) Aadish promised to pay Mrs. Aadish Loan and took away stock at  20,000.

(iii) Shreyansh took away half of the investments at a discount of 10%. Remaining investments realised 4,500.

(iv) Creditors were paid off at a discount of 10%.

(v) Expenses of realisation amounted to 7,000.

Prepare Realisation Account.

Marks-6, CBSE:2022-23/Zone-1/Set-1/Q-25

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