Madhur and Neeraj were partners in a firm sharing profits and losses in the ratio of 3 : 2. The Balance Sheet as at 31st March, 2024 was as follows:
Balance Sheet of Madhur and Neeraj as at 31st March, 2024
| Liabilities | Amount (₹) | Assets | Amount (₹) | ||
|---|---|---|---|---|---|
| Capitals: | Machinery | 7,00,000 | |||
| Madhur | 9,00,000 | Investments | 4,00,000 | ||
| Neeraj | 8,00,000 | 17,00,000 | Debtors | 11,00,000 | |
| Creditors | 6,00,000 | Stock | 2,00,000 | ||
| Bills Payable | 2,00,000 | Cash at Bank | 1,00,000 | ||
| Total | 25,00,000 | Total | 25,00,000 | ||
The firm was dissolved on the above date and the following transactions took place:
- Machinery was taken over by creditors in full settlement of their account.
- Investments were taken over by Neeraj at ₹5,00,000.
- One of the debtors of ₹1,00,000 was untraceable. Remaining debtors were realised at 10% less.
- Stock was taken over by Madhur at 50% discount.
- Realisation expenses amounting to ₹1,00,000 were paid by Madhur.
Prepare Realisation Account.
Marks-6, CBSE: 2024-25/Zone-4/Set-1/Q-23
Answer :
