Archana, Vandana and Arti were partners in a firm sharing profits and losses in the ratio of 5:3:2.
Their Balance Sheet on 31st March, 2023 was as follows:
Balance Sheet of Archana, Vandana and Arti as at 31st March, 2023
| Liabilities | Amount (Rs.) | Assets | Amount (Rs.) | |
|---|---|---|---|---|
| Capitals: Archana Vandana Arti General Reserve Creditors |
80,000 70,000 60,000 |
2,10,000 30,000 60,000 |
Investments Plant Stock Debtors Cash at Bank |
80,000 1,00,000 40,000 50,000 30,000 |
| Total | 3,00,000 | Total | 3,00,000 | |
The firm was dissolved on the above date.
(i) Assets were realised as follows:
Debtors – Rs. 40,000
Stock – Rs. 50,000
Plant – Rs. 60,000
(ii) 25% of the Investments were taken over by Vandana at Rs. 18,000. Remaining Investments were taken over by Archana at 10% less than its book value.
(iii) Expenses of realisation Rs. 20,000 were paid by Arti.
Prepare Realisation Account.
Marks-4, CBSE: 2023-24/Zone-1/Set-1/Q-22
Answer :
