Question

Susan, Geeta and Rashi are partners sharing profits and losses in the ratio of 5:3:2. Their Balance Sheet as at 31st March, 2017, is as under:

Balance Sheet of Susan, Geeta and Rashi As at 31st March, 2017

Liabilities	Amount	Assets	Amount
Sundry Creditors	50,000	Cash at Bank	70,000
Workmen Compensation Reserve	25,000	Sundry Debtor 65,000 Less Provision for Doubtful Debts (5,000	60,000
Employees Provident Fund	5,000	Goodwill	50,000
Bank Loan	55,000	Furniture	1,00,000
Capital A/C Susan                            2,20,000  Geeta                            1,70,000  Rashi                             1,35,000	5,25,000	Building	3,80,000
	6,60,000		6,60,000

The partners decided to dissolve their partnership on 31st March, 2017. The following transactions took place at the time of dissolution :

(a) Realization expenses of 2,000 were paid by Susan on behalf of the firm.

(b) Geeta took over the goodwill for her own business at  40,000.

(c) Building was taken over by Rashi at 3,00,000.

(d) Only 80% of the debtors paid their dues.

(e) Furniture was sold for  97,000.

(f) Bank Loan was settled along with interest of 5,000. You are required to prepare the Realization Account.

Answer 1

                                                        Realisation Account 

Particulars	Amount	Particulars	Amount
To Sundry Assets S. Debtors 65,000  Goodwill  50,000  Furniture  1,00,000  Building 3,80,000	5,95.000	By Provision for bad debts
To Susan’s Cap. (Real exp)	2,000	By Sundry Liabilities Creditors       50,000  Bank Loan      55,000  EPF                5,000	1,10,000
To Bank Creditors        50,000  Bank Loan       60,000      BPF                  5,000	1,15,000	By Geeta’s Capital (GW)	40,000
		By Rashi’s Capital (Bldg)	3,00,000
		By Bank Debtors          52,000  Furniture        97,000	1,49,000
		By Susan’s Capital A/c	54,000
		By Geeta’s Capital	32,400
		By Rashi’s Capital	21,600
	7,12,000		7,12,000