Shanti and Satya were partners in a firm sharing profits in the ratio

1.	Shanti and Satya were partners in a firm sharing profits in the ratio of 4 :1. On 31st March, 2013 their Balance Sheet was as follows: Balance Sheet of Shanti and Satya as at 31st March, 2013 Capital and LiabilitiesAmount (Rs.)AssetsAmount (Rs.)Creditors45,000Bank55,000Workmen's Compensation Fund40,000Debtors60,000Satya's Current Account65,000Stock85,000Capitals:Furniture1,00,000Shanti2,00,000Machinery1,30,000Satya1,00,000Shanti's Current Account20,000¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯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 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» Shanti and Satya were partners in a firm sharing profits in the ratio of 4 :1. On 31st March, 2013 their Balance Sheet was as follows: Balance Sheet of Shanti and Satya as at 31st March, 2013 $\begin{matrix} Capital and Liabilities & Amount (Rs.) & Assets & Amount (Rs.) Creditors & 45, 000 & Bank & 55, 000 Workmen's Compensation Fund & 40, 000 & Debtors & 60, 000 Satya's Current Account & 65, 000 & Stock & 85,000 Capitals: & Furniture & 1, 00, 000 Shanti & 2, 00, 000 & Machinery & 1, 30, 000 Satya & 1, 00, 000 & Shanti's Current Account & 20, 000 ¯ ¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯ ¯ 4, 50, 000 - -------- - & ¯ ¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯ ¯ 4, 50, 000 - -------- - \end{matrix}$ On the above date the firm was dissolved: (1) Shanti took over 40% of the stock at 10% less than its 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.

Shanti and Satya were partners in a firm sharing profits in the ratio of 4 :1. On 31st March, 2013 their Balance Sheet was as follows: Balance Sheet of Shanti and Satya as at 31st March, 2013 Capital and LiabilitiesAmount (Rs.)AssetsAmount (Rs.)Creditors45,000Bank55,000Workmen's Compensation Fund40,000Debtors60,000Satya's Current Account65,000Stock85,000Capitals:Furniture1,00,000Shanti2,00,000Machinery1,30,000Satya1,00,000Shanti's Current Account20,000¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯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 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»

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

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

$\begin{matrix} Capital and Liabilities & Amount (Rs.) & Assets & Amount (Rs.) Creditors & 45, 000 & Bank & 55, 000 Workmen's Compensation Fund & 40, 000 & Debtors & 60, 000 Satya's Current Account & 65, 000 & Stock & 85,000 Capitals: & Furniture & 1, 00, 000 Shanti & 2, 00, 000 & Machinery & 1, 30, 000 Satya & 1, 00, 000 & Shanti's Current Account & 20, 000 ¯ ¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯ ¯ 4, 50, 000 - -------- - & ¯ ¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯ ¯ 4, 50, 000 - -------- - \end{matrix}$

On the above date the firm was dissolved:

(1) Shanti took over 40% of the stock at 10% less than its 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.

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