Question

Hanif and Jubed were partners in a firm sharing profits in the ratio of their capitals. On the 31st March 2013 their Balance Sheet was as follows:

Balance Sheet of Hanif and Jubed as on 31st March 2013
Liabilities	Rs	Assets	Rs
Creditors Workman Companion Fund General Reserve Hanif’s Current Account Capital's:    Hanif      10,00,000    Jubed       5,00,000	1,50,000 3,00,000 75,000 25,000     15,00,000	Bank Debtors Stock   Furniture Machinery Jubed’s Current Account	2,00,000 3,40,000 1,50,000   4,60,000 8,20,000 80,000
	20,50,000		20,50,000

On the above date the firm was dissolved:

a. Debtors were realised at a discount of 5%, 50% of the stock was taken over by Hanif at 10% less than the book value. Remaining stock was sold for Rs 65,000.
b. Furniture was taken over by Jubed for Rs 1,35,000. Machinery was sold as scrap for Rs 74,000.
c. Creditors were paid in full.
d. Expenses on realisation Rs 8,000 were paid by Hanif.

Prepare Realisation Account.

Answer 1

Realisation Account
Dr.			Cr.
Particulars	Rs	Particulars	Rs
To Sundry Asset A/c Debtors             3,40,000 Stock                1,50,000 Furniture           4,60,000 Machinery          8,20,000 To Bank A/c Hanif’s Current A/c  (Realisation Expenses)	17,70,000 1,50,000 8,000	By Sundry Liabilities A/c Creditors Bank A/c: Debtors      3,23,000 Stock            65,000 Machinery      74,000 Hanif’s Current A/c ( stock) Jubed’s Current A/c (Furniture) Loss transferred to: Hanif’s Current A/c    7,42,333 Jubed’s Current A/c    3,71,167	1,50,000       4,62,000 67,500 1,35,000     11,13,500
	19,28,000		19,28,000