Achad and Vichal were partners in a firm sharing profits in the ratio

1.	Achad and Vichal were partners in a firm sharing profits in the ratio of 3 : 5. On 31.3.2011 their Balance Sheet was as follows: Capital and LiabilitiesAmount (Rs.)AssetsAmount (Rs.)Capital:Land and Building4,00,000Achal 3,00,000Machinery3,00,000Vichal 5,00,000––––––––––8,00,000Debtors2,22,000Creditors1,79,000Cash at Bank78,000Employees Provident Fund21,000¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯10,00,000–––––––––––¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯10,00,000––––––––––– The firm was dissolved on 01.04.2011 and the assets and liabilities were settled as follows : (i) Land and Building realised Rs. 4,30,000; (ii) Debtors realised Rs. 2,25,000 (with interest) and Rs. 1,000 were recovered for bad debts written off last year; (iii) There was an unrecorded investment which was sold for Rs. 25,000; (iv) Vichal took-over machinery at Rs. 2,80,000 for cash; (v) 50% of the creditors were paid Rs. 4,000 less in full settlement and the remaining creditors were paid full amount. Prepare realisation account.
Answer» Achad and Vichal were partners in a firm sharing profits in the ratio of 3 : 5. On 31.3.2011 their Balance Sheet was as follows: $\begin{matrix} Capital and Liabilities & Amount (Rs.) & Assets & Amount (Rs.) Capital: & Land and Building & 4, 00, 000 Achal 3, 00, 000 & Machinery & 3, 00, 000 Vichal 5, 00, 000 - -------- - & 8, 00, 000 & Debtors & 2, 22, 000 Creditors & 1, 79, 000 & Cash at Bank & 78, 000 Employees Provident Fund & 21, 000 ¯ ¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯ ¯ 10, 00, 000 - --------- - & ¯ ¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯ ¯ 10, 00, 000 - --------- - \end{matrix}$ The firm was dissolved on 01.04.2011 and the assets and liabilities were settled as follows : (i) Land and Building realised Rs. 4,30,000; (ii) Debtors realised Rs. 2,25,000 (with interest) and Rs. 1,000 were recovered for bad debts written off last year; (iii) There was an unrecorded investment which was sold for Rs. 25,000; (iv) Vichal took-over machinery at Rs. 2,80,000 for cash; (v) 50% of the creditors were paid Rs. 4,000 less in full settlement and the remaining creditors were paid full amount. Prepare realisation account.

Achad and Vichal were partners in a firm sharing profits in the ratio of 3 : 5. On 31.3.2011 their Balance Sheet was as follows: Capital and LiabilitiesAmount (Rs.)AssetsAmount (Rs.)Capital:Land and Building4,00,000Achal 3,00,000Machinery3,00,000Vichal 5,00,000––––––––––8,00,000Debtors2,22,000Creditors1,79,000Cash at Bank78,000Employees Provident Fund21,000¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯10,00,000–––––––––––¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯10,00,000––––––––––– The firm was dissolved on 01.04.2011 and the assets and liabilities were settled as follows : (i) Land and Building realised Rs. 4,30,000; (ii) Debtors realised Rs. 2,25,000 (with interest) and Rs. 1,000 were recovered for bad debts written off last year; (iii) There was an unrecorded investment which was sold for Rs. 25,000; (iv) Vichal took-over machinery at Rs. 2,80,000 for cash; (v) 50% of the creditors were paid Rs. 4,000 less in full settlement and the remaining creditors were paid full amount. Prepare realisation account.

Answer»

Achad and Vichal were partners in a firm sharing profits in the ratio of 3 : 5. On 31.3.2011 their Balance Sheet was as follows:

$\begin{matrix} Capital and Liabilities & Amount (Rs.) & Assets & Amount (Rs.) Capital: & Land and Building & 4, 00, 000 Achal 3, 00, 000 & Machinery & 3, 00, 000 Vichal 5, 00, 000 - -------- - & 8, 00, 000 & Debtors & 2, 22, 000 Creditors & 1, 79, 000 & Cash at Bank & 78, 000 Employees Provident Fund & 21, 000 ¯ ¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯ ¯ 10, 00, 000 - --------- - & ¯ ¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯ ¯ 10, 00, 000 - --------- - \end{matrix}$

The firm was dissolved on 01.04.2011 and the assets and liabilities were settled as follows :

(i) Land and Building realised Rs. 4,30,000;

(ii) Debtors realised Rs. 2,25,000 (with interest) and Rs. 1,000 were recovered for bad debts written off last year;

(iii) There was an unrecorded investment which was sold for Rs. 25,000;

(iv) Vichal took-over machinery at Rs. 2,80,000 for cash;

(v) 50% of the creditors were paid Rs. 4,000 less in full settlement and the remaining creditors were paid full amount.

Prepare realisation account.

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