Question

Shanti and Satya were partners in firm in a sharing profit in the ratio of 4:1. On 31st march ,2013 their Balance Sheet was as follows:

                     Balance Sheet of Shanti and Satya as on 31st March, 2013

Liabilities	Amount(Rs.)	Assets	Amount(Rs.)
Creditors Workman Compention Fund Satya’s Current Account Capital’s:         Shanti         Satya	45,000 40,000 65,000   2,00,000 1,00,000	Bank Debtors Stock Furniture Machinery Shanti’s Current Account	55,000 60,000 85,000 1,00,000 1,30,000 20,000
	4,50,000		4,50,000

On the above date the firm was dissolved:

1. Shanti took over 40% of the stock at 10% less than its book value and the remaining stock was sold for Rs.40,000. Furniture realized Rs.80,000.

2. An unrecorded investment was sold for Rs.20,000. Machinery was sold at a loss of Rs.60,000.

3. Debtors realized Rs.55,000.

4. There was an outstanding bill for repairs for which Rs.19,000 were paid.

Prepare Realisation Account.

Answer 1

                                                            Retaliation Account

Dr.                                                                                                                                               Cr.

Particular	Amount(Rs.)	Particular	Amount(Rs.)
To Sundry Asset          Debtors                    60,000          Stock                       85,000          Furniture                1,00,000          Machinery              1,30,000    To Cash A/c (Liabilities)          Creditors                   45,000          Outstanding Bill          19,000	3,75,000       64,000	By Creditors A/c By Shanti’s Current A/c (stock) By Cash A/c (Assets Realised)     Stock                              40,000     Furniture                         80,000     Unrecorded Investment    20,000     Machinery                       70,000     Debtors                           55,000    By Realisation Loss        Shanti’s Current A/c       78,720       Satya’s Current A/c        19,680	45,000 30,600           2,65,000       98,400
	4,39,000		4,39,000