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 |
18,000 |
|
| 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
Answer :