Question

At the time of dissolution of a partnership firm, its Balance Sheet showed the stock of ₹ 30,000 comprising easily marketable items, obsolete items and a few miscellaneous other items. These items were realized as:

• Easily Marketable Items: 65% of the total inventory in full.
• Obsolete items: 20% of the total inventory had to be discarded.
• The miscellaneous other items in the stock are at 40% of their book value.

You are required to pass the journal entry for the realisation of stock.

Answer 1

Journal Entry
Date	Particulars	L.F.	Dr. (₹)	Cr. (₹)
	Bank A/c    ...Dr.		21,300	-
	To Realisation A/c		-	21,300
	(Being money realised from stock)

Working Note:

Total stock value – ₹ 30,000 out of Total Stock

(a) Easily Marketable Items realised = `(30,000 xx 65)/100`

= 19,500 full realisation

(b) Obsolete item: 20% discarded (6,000 B.V.) 

(c) The miscellaneous other items realised

= 30,000 – 19,500 – 6,000

= `4,500 xx 40/100` 

= 1,800

Total realisation from stock:

19,500 + 1,800

= 21,300