| Liabilities | Amount ( Rs.) | Assets | Amount ( Rs.) |
| Creditors | 1,70,000 | Bank | 1,10,000 |
| Workmen Compensation Reserve | 2,10,000 | Debtor Rs. | 2,40,000 |
| General Reserve | 2,00,000 | Stock | 1,30,000 |
| Ramesh’s Current Account | 80,000 | Furniture | 2,00,000 |
| Capital A/c : | Machinery | 9,30,000 | |
| Ramesh 7,00,000 | Umesh’s Current Account | 50,000 | |
| Umesh 3,00,000 | 10,00,000 | ||
| 16,60,000 | 16,60,000 |
On the above date the firm was dissolved.
(a) Ramesh took over 50% of stock at Rs. 10,000 less than book value. The remaining stock was sold at a loss of Rs. 15,000. Debtor Rs. were realised at a discount of 5%.
(b) Furniture was taken over by Umesh for Rs. 50,000 and machinery was sold for Rs. 4,50,000.
(c) Creditors were paid in full.
(d) There was an unrecorded bill for repay Rs. for Rs. 1,60,000 which was settled at Rs. 1,40,000. Prepare Realisation Account.
Solution
