CBSE 2025, Set 2

Question

Dev, Santosh and Arti were partners in a firm sharing profits and losses in the ratio of 1:2:2. On 31st March, 2024, their Balance Sheet was as follows:
| Liabilities | Amount (₹) | Assets | Amount (₹) | |---|---|---|---| | Capitals: | | Plant and Machinery | 8,00,000 | | Dev 2,00,000 | | Land and Building | 3,64,000 | | Santosh 4,00,000 | | Debtors 1,90,000 | | | Arti 4,00,000 | 10,00,000 | Less: Prov 10,000 | 1,80,000 | | Santosh's Loan | 3,40,000 | Stock | 4,40,000 | | Mrs. Dev's Loan | 4,00,000 | Cash at Bank | 2,10,000 | | Outstanding Salary | 34,000 | | | | Creditors | 2,20,000 | | | | **Total** | **19,94,000** | **Total** | **19,94,000** |

On the above date the firm was dissolved and the following transactions took place:
(i) Debtors were taken over by the creditors in full settlement of their account.
(ii) Dev agreed to pay off Mrs. Dev's loan.
(iii) 50% of the stock was taken over by Santosh at 10% less than the book value. The remaining stock was sold at a profit of 20%.
(iv) Land and Building was taken over by Arti for ₹ 10,00,000 and Plant and Machinery was sold as scrap for ₹ 1,70,000.
(v) Realisation expenses were ₹ 40,000.

Prepare Realisation Account.

Edvaya · Accepted Answer

The correct answer is Subjective. **Realisation A/c** | Dr. Particulars | Amount (₹) | Cr. Particulars | Amount (₹) | |---|---|---|---| | To Sundry Assets: | | By Sundry Liabilities: | | | Plant & Machinery | 8,00,000 | Mrs. Dev's Loan | 4,00,000 | | Land & Building | 3,64,000 | Outstanding Salary | 34,000 | | Debtors | 1,90,000 | Creditors | 2,20,000 | | Stock | 4,40,000 | Prov for doubtful debts | 10,000 | | To Dev's Capital (Mrs. Dev's Loan) | 4,00,000 | By Santosh's Capital (Stock: 2.2L-10%) | 1,98,000 | | To Bank A/c: | | By Arti's Capital (Land & Bldg) | 10,00,000 | | Outstanding salary | 34,000 | By Bank A/c: | | | Realisation expenses | 40,000 | Stock (2.2L+20%) | 2,64,000 | | To Profit transferred to: | | Plant & Mach | 1,70,000 | | Dev (1/5) | 5,600 | | | | Santosh (2/5) | 11,200 | | | | Arti (2/5) | 11,200 | | | | **Total** | **22,96,000** | **Total** | **22,96,000** |

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Accountancy > Accounting For Partnership Firms > Dissolution Of Partnership Firm

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Liabilities	Amount (₹)	Assets	Amount (₹)
Capitals:		Plant and Machinery	8,00,000
Dev 2,00,000		Land and Building	3,64,000
Santosh 4,00,000		Debtors 1,90,000
Arti 4,00,000	10,00,000	Less: Prov 10,000	1,80,000
Santosh's Loan	3,40,000	Stock	4,40,000
Mrs. Dev's Loan	4,00,000	Cash at Bank	2,10,000
Outstanding Salary	34,000
Creditors	2,20,000
Total	19,94,000	Total	19,94,000