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Question
Ramesh and Umesh were partners in a firm sharing profits in the ratio of their capitals. On 31st March, 2013 their Balance Sheet was as follows:On the above data the firm was dissolved.
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Balance Sheet of Ramesh and Umesh as on 31st March, 2013 |
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Liabilities |
Amount Rs |
Assets |
Amount Rs |
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Creditors |
1,70,000 |
Bank |
1,10,000 |
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|
Workmen’s Compensation Fund |
2,10,000 |
Debtors |
2,40,000 |
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General Reserve |
2,00,000 |
Stock |
1,30,000 |
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Ramesh’s Current Account |
80,000 |
Furniture |
2,00,000 |
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Capitals: |
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Machinery |
9,30,000 |
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Ramesh |
7,00,000 |
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Umesh’s Current Account |
50,000 |
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Umesh |
3,00,000 |
10,00,000 |
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|
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16,60,000 |
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16,60,000 |
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(i) Ramesh took over 50% of stock at Rs 10,000 less than book value. The remaining stock was sold at a loss of Rs 15,000. Debtors were realised at a discount of 5%.
(ii) Furniture was taken over by Umesh for Rs 50,000 and machinery was sold for Rs 4,50,000.
(iii) Creditors were paid in full.
(iv) There was an unrecorded bill for repairs for Rs 1,60,000 which was settled at Rs 1,40,000.
Prepare Realisation Account.
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Solution
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Realisation Account |
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Dr. |
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Cr. |
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Particulars |
Amount Rs |
Particulars |
Amount Rs |
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Sundry Assets- |
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Creditors |
1,70,000 |
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Debtors |
2,40,000 |
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Ramesh’s Current A/c (Stock) |
55,000 |
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Stock |
1,30,000 |
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Cash A/c (Assets Realised) |
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Furniture |
2,00,000 |
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Stock |
50,000 |
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Machinery |
9,30,000 |
15,00,000 |
Machinery |
4,50,000 |
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Debtors |
2,28,000 |
7,28,000 |
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To Cash A/c (Liabilities) |
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Umesh’s Current A/c (Furniture) |
50,000 |
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Creditors |
1,70,000 |
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Outstanding Bill |
1,40,000 |
3,10,000 |
Realisation Loss |
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Ramesh’s Current A/c |
5,64,900 |
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Umesh’s Current A/c |
2,42,100 |
8,07,000 |
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18,10,000 |
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18,10,000 |
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