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
|Creditors||90,000||Cash at Bank||20,000|
|Mrs. Aadish’s Loan||30,000||Stock||24,000|
|General Reserve||45,000||Debtors 20,000|
|Capitals:||Less: Provision for
Doubtful Debts 2,000
|Shreyansh 97,000||1,97,000||Advertisement Suspense A/c||2,00,000|
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.