Question

Sameer and Daulat were partners sharing profits and losses in the ratio of 2 : 3. They decided to dissolve the firm on 31st March, 2025. Their Balance Sheet was as under:

Balance Sheet of Sameer and Daulat As at 31st March 2025
Liabilities	(₹)	Assets	(₹)	(₹)
Sameer’s Capital	4,50,000	Land & Building		3,20,000
Daulat’s Capital	3,00,000	Investments		1,80,000
Trade Creditors	60,000	Trade Debtors	70,000	65,000
Sameer’s Loan	50,000	Less: Provision for doubtful debts	5,000
		Closing Stock		45,000
		Cash at Bank		2,50,000
	8,60,000			8,60,000

Additional information:

The firm was dissolved subject to the following adjustments:

1. Sameer took over the closing stock for the settlement of his loan.
2. Debtors of ₹ 15,000 proved bad.
3. Land & Building was realised at 25% above the book value.
4. Sameer paid realisation expenses of ₹ 15,000.

You are required to prepare the Realisation Account.

Answer 1

Dr.	Realisation Account for the year ended 31st March, 2025				Cr.
Particulars	Amount (₹)	Amount (₹)	Particulars	Amount (₹)	Amount (₹)
To Land & Building		3,20,000	By Trade Creditors		60,000
To Investments		1,80,000	By Provision for Doubtful Debts		5,000
To Trade Debtors		70,000	By Sameer’s Loan A/c		50,000
To Closing Stock		45,000	By Bank A/c		6,35,000
To Bank A/c		60,000	Land & Building	4,00,000
To Sameer’s Capital A/c		15,000	Debtors	55,000
To Partner Capital A/c		60,000	Investments	1,80,000
Sameer	24,000
Daulat	36,000
		7,50,000			7,50,000

Working Notes:

Realisation of Land & Building = `3,20,000 xx 25/100`

= 80,000

Total Realised = 3,20,000 + 80,000

= 4,00,000

Realisation of Debtors = 70,000 − 15,000

= 55,000