Question

Ramesh and Umesh were partners in a firm sharing profits in the ratio of their capitals. On 31st March, 2013 their Balance Sheet was as follows:On the above data the firm was dissolved. 

Balance Sheet of Ramesh and Umesh as on                            31st March, 2013
Liabilities		Amount Rs	Assets	Amount Rs
Creditors		1,70,000	Bank	1,10,000
Workmen’s Compensation Fund		2,10,000	Debtors	2,40,000
General Reserve		2,00,000	Stock	1,30,000
Ramesh’s Current Account		80,000	Furniture	2,00,000
Capitals:			Machinery	9,30,000
Ramesh	7,00,000		Umesh’s Current Account	50,000
Umesh	3,00,000	10,00,000
		16,60,000		16,60,000

(i) Ramesh took over 50% of stock at Rs 10,000 less than book value. The remaining stock was sold at a loss of Rs 15,000. Debtors were realised at a discount of 5%.
(ii) Furniture was taken over by Umesh for Rs 50,000 and machinery was sold for Rs 4,50,000.
(iii) Creditors were paid in full.
(iv) There was an unrecorded bill for repairs for Rs 1,60,000 which was settled at Rs 1,40,000.

Prepare Realisation Account.

Answer 1

Realisation Account
Dr.							Cr.
Particulars				Amount Rs	Particulars			Amount Rs
Sundry Assets-					Creditors			1,70,000
Debtors		2,40,000			Ramesh’s Current A/c (Stock)			55,000
Stock		1,30,000			Cash A/c (Assets Realised)
Furniture		2,00,000			Stock	50,000
Machinery		9,30,000		15,00,000	Machinery	4,50,000
					Debtors	2,28,000		7,28,000
To Cash A/c (Liabilities)					Umesh’s Current A/c (Furniture)			50,000
Creditors			1,70,000
Outstanding Bill			1,40,000	3,10,000	Realisation Loss
					Ramesh’s Current A/c	5,64,900
					Umesh’s Current A/c	2,42,100		8,07,000
				18,10,000				18,10,000