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Question
Jayant and Ramakant were partners in the firm. On 31st March 2013 their Balance Sheet was as follows:
| Balance Sheet of Jayant and Ramakant as on 31st March 2013 | |||
| Liabilities | Amount (Rs) | Assets | Amount (Rs) |
|
Creditors Workman Compensation Fund Satya’s Current Account Capital's: Jayant Ramaknat |
75,000 45,000 15,000
|
Bank Debtors Stock Furniture Machinery Shanti’s Current Account |
70,000 2,00,000 20,000 20,000 3,12,000 13,000 |
|
|
6,35,000 |
|
6,35,000 |
On the above date the firm was dissolved:
1. Jayant took over 40% of the stock at 20% less than its book value and the remaining stock was sold for Rs 15,000. Furniture realized Rs 20,000.
2. An unrecorded asset was sold for Rs 3,000. Machinery was sold at a loss of Rs 75,000.
3. Debtors realized Rs 10,000.
4. There was an outstanding bill for repairs for which Rs 38,000 were paid.
Prepare Realisation Account
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Solution
| Realisation Account | |||
| Particulars | Rs | Particulars | Rs |
|
To Sundry Assets: Debtors 2,00,000 Stock 20,000 Furniture 20,000 Machinery 3,12,000
To Cash A/c (Liabilities) Creditors 75,000 Outstanding Bill 38,000
|
5,52,000
1,13,000
|
By Creditors A/c By Jayant’s Current A/c By Cash A/c Stock 15,000 Furniture 20,000 Unrecorded Asset 3,000 Machinery 2,37,000 Debtors 1,90,000
By Realisation Loss trfd: Jayant’s Current A/c 59,300 Ramakant’s Current A/c 59,300
|
75,000 6,400
4,65,000
1,18,600
|
|
|
6,65,000 |
|
6,65,000 |
