Ramesh and Umesh were partners in a firm sharing profits in the ratio of their capitals. On 31st March, 2013, their Balance Sheet was as follows:
|
Liabilities
|
Amount
|
Assets
|
Amount
|
|
Creditors
|
1,70,000
|
Bank
|
1,10,000
|
|
Workmen Compensation Reserve
|
2,10,000
|
Debtors
|
2,40,000
|
|
General Reserve
|
2,00,000
|
Stock
|
1,30,000
|
|
Ramesh's Current Account
|
80,000
|
Furniture
|
2,00,000
|
|
Capital A/cs:
Ramesh 7,00,000
Umesh 3,00,000
|
10,00,000
|
Machinery
Umesh's Current Account
|
9,30,000
50,000
|
|
|
|
|
|
|
16,60,000
|
16,60,000
|
|
|
|
|
|
On the above date the firm was dissolved.
a Ramesh took over 50% of stock at 10,000 less than book value. The remaining stock was sold at a loss of 15,000. Debtors were realised at a discount of 5%.
b Furniture was taken over by Umesh for 50,000 and machinery was sold for 4,50,000.
c Creditors were paid in full.
d There was an unrecorded bill for repairs for 1,60,000 which was settled at 1,40,000. Prepare Realisation Account.