Shanthi and Satya were partners in a firm sharing profit in the ratio

1.	Shanthi and Satya were partners in a firm 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 AmountAssetsAmount(Rs)(Rs)Creditors45,000Bank55,000Workmen's Compensation Fund65,000Debtors40,000Saty's Current A/c60,000Stock85,000Capitals :Furniture1,00,000 Shanti2,00,000Machinery1,30,000 Satya1,00,000Shanti's Current A/c20,000¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯4,50,000¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯4,50,000 On the above date the firm was dissolved : (i) 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 realised Rs 80,000. (ii) An unrecorded investment was sold for Rs 20,000. Machinery was sold at a loss of Rs 60,000. (iii) Debtors realised Rs 55,000. (iv) There was an outstanding bill for repairs for which Rs 19,000 were paid. Prepare Realisation Account.
Answer» Shanthi and Satya were partners in a firm 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 $\begin{matrix} Liabilities & Amount & Assets & Amount (Rs) & (Rs) Creditors & 45, 000 & Bank & 55, 000 Workmen's Compensation Fund & 65, 000 & Debtors & 40, 000 Saty's Current A/c & 60, 000 & Stock & 85, 000 Capitals : & Furniture & 1, 00, 000 Shanti & 2, 00, 000 & Machinery & 1, 30, 000 Satya & 1, 00, 000 & Shanti's Current A/c & 20, 000 ¯ ¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯ ¯ 4, 50, 000 & ¯ ¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯ ¯ 4, 50, 000 \end{matrix}$ On the above date the firm was dissolved : (i) 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 realised Rs 80,000. (ii) An unrecorded investment was sold for Rs 20,000. Machinery was sold at a loss of Rs 60,000. (iii) Debtors realised Rs 55,000. (iv) There was an outstanding bill for repairs for which Rs 19,000 were paid. Prepare Realisation Account.

Shanthi and Satya were partners in a firm 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 AmountAssetsAmount(Rs)(Rs)Creditors45,000Bank55,000Workmen's Compensation Fund65,000Debtors40,000Saty's Current A/c60,000Stock85,000Capitals :Furniture1,00,000 Shanti2,00,000Machinery1,30,000 Satya1,00,000Shanti's Current A/c20,000¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯4,50,000¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯4,50,000 On the above date the firm was dissolved : (i) 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 realised Rs 80,000. (ii) An unrecorded investment was sold for Rs 20,000. Machinery was sold at a loss of Rs 60,000. (iii) Debtors realised Rs 55,000. (iv) There was an outstanding bill for repairs for which Rs 19,000 were paid. Prepare Realisation Account.

Answer»

Shanthi and Satya were partners in a firm 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
$\begin{matrix} Liabilities & Amount & Assets & Amount (Rs) & (Rs) Creditors & 45, 000 & Bank & 55, 000 Workmen's Compensation Fund & 65, 000 & Debtors & 40, 000 Saty's Current A/c & 60, 000 & Stock & 85, 000 Capitals : & Furniture & 1, 00, 000 Shanti & 2, 00, 000 & Machinery & 1, 30, 000 Satya & 1, 00, 000 & Shanti's Current A/c & 20, 000 ¯ ¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯ ¯ 4, 50, 000 & ¯ ¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯ ¯ 4, 50, 000 \end{matrix}$

On the above date the firm was dissolved :

(i) 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 realised Rs 80,000.

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

(iii) Debtors realised Rs 55,000.

(iv) There was an outstanding bill for repairs for which Rs 19,000 were paid. Prepare Realisation Account.

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