Question

Jayant and Ramakant were partners in the firm. On 31st March 2013 their Balance Sheet was as follows:

Balance Sheet of Jayant and Ramakant as on 31st March 2013
Liabilities	Amount (Rs)	Assets	Amount (Rs)
Creditors Workman Compensation Fund Satya’s Current Account Capital's:    Jayant    Ramaknat	75,000 45,000 15,000	Bank Debtors Stock Furniture Machinery Shanti’s Current Account	70,000 2,00,000 20,000 20,000 3,12,000 13,000
	6,35,000		6,35,000

On the above date the firm was dissolved:

1. Jayant took over 40% of the stock at 20% less than its book value and the remaining stock was sold for Rs 15,000. Furniture realized Rs 20,000.
2. An unrecorded asset was sold for Rs 3,000. Machinery was sold at a loss of Rs 75,000.
3. Debtors realized Rs 10,000.
4. There was an outstanding bill for repairs for which Rs 38,000 were paid.

Prepare Realisation Account

Answer 1

Realisation Account
Particulars	Rs	Particulars	Rs
To Sundry Assets:     Debtors     2,00,000     Stock           20,000     Furniture      20,000    Machinery   3,12,000       To Cash A/c (Liabilities)    Creditors             75,000   Outstanding Bill     38,000	5,52,000           1,13,000	By Creditors A/c By Jayant’s Current A/c By Cash A/c    Stock                    15,000    Furniture               20,000    Unrecorded Asset    3,000    Machinery             2,37,000    Debtors               1,90,000   By Realisation Loss trfd:     Jayant’s Current A/c        59,300     Ramakant’s Current A/c   59,300	75,000 6,400           4,65,000       1,18,600
	6,65,000		6,65,000