Question

Harish and Gopal were partners in a firm sharing profits in the ratio of 3: 2. On 31^st March, 2018, their Balance Sheet was as follows:

Balance Sheet of Harish and Gopal as at March 31, 2018
Liabilities	Amount (₹)	Amount (₹)	Assets	Amount (₹)
Creditors		36,000	Cash	47,000
Outstanding expenses		10,000	Bank	93,000
Gopal’s wife loan		50,000	Debtors	76,000
Capitals:		4,40,000	Stock	2,00,000
Harish	2,80,000		Furniture	20,000
Gopal	1,60,000		Leasehold premises	1,00,000
		5,36,000		5,36,000

On the above date, the firm was dissolved. The various assets were realized and liabilities were settled as under:

1. Gopal agreed to pay his wife’s loan.
2. Leasehold premises realised ₹ 1,50,000 and Debtors ₹ 12,000 less.
3. Half of the creditors agreed to accept furniture of the firm as full settlement of their claim and remaining half agreed to accept 10% less.
4. 50% stock was taken over by Harish on payment by cheque of ₹ 90,000 and remaining stock was sold for ₹ 94,000.
5. Realization expenses ₹ 10,000 were paid by Gopal on behalf of the firm.

Prepare Realization Account.

Answer 1

Books of Harishs and Gopal
Dr.	Realisation Account				Cr.
Particulars	Amount (₹)	Amount (₹)	Particulars	Amount (₹)	Amount (₹)
To Sundry Assets:		3,96,000	By Sundry Liabilities:		96,000
Debtors	76,000		Creditors	36,000
Stock	2,00,000		Outstanding Expenses	10,000
Furniture	20,000		Gopal’s wife’s Loan	50,000
Leasehold Premises	1,00,000		By Bank A/c		3,98,000
To Gopal’s Capital A/c (Mrs. Gopal’s Loan)		50,000	Leasehold Premises	1,50,000
To Bank A/c		26,200	Debtors	64,000
Creditors	16,200		Stock (90,000 + 94,000)	1,84,000
Outstanding Expenses	10,000
To Gopal’s Capital A/c (Realisation Expenses)		10,000
To Gopal transferred to Capital A/cs:		11,800
Harish	7,080
Gopal	4,720
		4,94,000			4,94,000