Realisation Account
Question 21:
C, D and E were partners in a firm sharing profits in the ratio of 3:1:1.Their Balance Sheet as at 31st March, 2022 was as follows:
|
Liabilities |
|
₹ |
Assets |
₹ |
|
Capital Acs: |
|
|
Machinery |
3,20,000 |
|
C |
4,00,000 |
|
Investments |
3,00,000 |
|
D |
2,00,000 |
|
Stock |
2,00,000 |
|
E |
1,00,000 |
7,00,000 |
Debtors |
1,00,000 |
|
Cs Loan |
|
1,20,000 |
Cash at Bank |
2,00,000 |
|
Sundry Creditors |
|
1,00,000 |
|
|
|
Bills Payable |
|
2,00,000 |
|
|
|
|
|
|
|
|
|
|
|
11,20,000 |
|
11,20,000 |
On the above date, the firm was dissolved due to certain disagreement among the partners:
(i) Machinery of Rs. 3,00,000 were given to creditors in full settlement of their account and remaining machinery was sold for Rs. 10,000.
(ii) Investments realized Rs. 2,90,000.
(iii) Stock was sold for 1,80,000.
(iv) Debtors for 20,000 proved bad.
(v) Realisation expenses amounted to Rs. 10,000.
Prepare Realisation Account.
(CBSE 2023)
Answer:
|
|
Realisation Account |
|||||
|
Particulars |
|
₹ |
Particulars |
|
₹ |
|
|
Machinery |
|
3,20,000 |
Sundry Creditors |
|
1,00,000 |
|
|
Investment |
|
3,00,000 |
Bills Payable |
|
2,00,000 |
|
|
Stock |
|
2,00,000 |
Bank A/c |
|
|
|
|
Debtors |
|
1,00,000 |
Machinery |
10,000 |
|
|
|
Bank A/c (B/P) |
|
2,00,000 |
Investment |
2,90,000 |
|
|
|
Bank A/c (Exp.) |
|
10,000 |
Stock |
1,80,000 |
|
|
|
|
|
|
Debtors |
80,000 |
5,60,000 |
|
|
|
|
|
Loss |
|
2,70,000 |
|
|
|
|
11,30,000 |
|
|
11,30,000 |
|
Question 22:
Ramesh and Umesh were partners in a firm sharing profits in the ratio of their capitals. On 31st March, 2026, their Balance Sheet was as follows:
|
Liabilities |
(₹) |
Assets |
(₹) |
||
|
Creditors |
1,70,000 |
Bank |
1,10,000 |
||
|
Workmen Compensation Reserve |
2,10,000 |
Debtor |
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: |
|
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 ₹ 10,000 less than book value. The
remaining stock was sold at a loss of ₹ 15,000. Debtor 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 repai₹ for ₹ 1,60,000
which was settled at ₹ 1,40,000.
Prepare Realisation Account.
Answer:
|
Realisation Account |
||||||
|
Dr. |
|
Cr. |
||||
|
Particulars |
₹ |
Particulars |
₹ |
|||
|
Sundry Assets- |
|
Creditors |
1,70,000 |
|||
|
Debtor |
2,40,000 |
|
Ramesh’s Current A/c (Stock) |
55,000 |
||
|
Stock |
1,30,000 |
|
Cash A/c (Assets Realised) |
|
||
|
Furniture |
2,00,000 |
|
Stock |
50,000 |
|
|
|
Machinery |
9,30,000 |
15,00,000 |
Machinery |
4,50,000 |
|
|
|
|
|
Debtor |
2,28,000 |
7,28,000 |
||
|
To Cash A/c (Liabilities) |
|
Umesh’s Current A/c (Furniture) |
50,000 |
|||
|
Creditors |
1,70,000 |
|
|
|
||
|
Outstanding Bill |
1,40,000 |
3,10,000 |
Realisation Loss |
|
||
|
|
|
Ramesh’s Current A/c |
5,64,900 |
|
||
|
|
|
Umesh’s Current A/c |
2,42,100 |
8,07,000 |
||
|
|
18,10,000 |
|
18,10,000 |
|||
|
|
|
|
|
|||
Question 23:
Pradeep and Paresh partners in a firm decided to dissolve their partnership firm on 1st April, 2026. Pradeep was deputed to realise the assets and to pay off the liabilities. He was paid ₹10,000 as commission for his services. Balance Sheet of the firm on 31st March, 2026 was as follows:
|
|
BALANCE SHEET as at 31st March, 2026 |
|||||
|
Liabilities |
|
₹ |
Assets |
|
₹ |
|
|
Sundry Creditors |
|
1,29,400 |
Building |
|
3,00,000
|
|
|
Mrs. Pradeep's Loan |
|
40,000 |
Investment |
|
30,000 |
|
|
Paresh's Loan |
|
24,000 |
Debtors |
71,400 |
|
|
|
Investment Fluctuation Reserve |
|
8,000 |
Less: Provision for Doubtful Debts |
4,000 |
67,400 |
|
|
Capital A/s: |
|
|
Bank |
|
16,000 |
|
|
Pradeep |
1,21,000 |
|
Profit & Loss A/c |
|
20,000 |
|
|
Paresh |
1,21,000 |
2,42,000 |
Goodwill |
|
10,000 |
|
|
|
|
|
|
|
|
|
|
|
|
4,43,400 |
|
|
4,43,400 |
|
Following terms and conditions were agreed upon:
(a) Pradeep agreed to pay his wife's loan.
(b) Investment was given to Paresh for 27,000.
(c) Building realisedRs. 3,50,000.
(d) Creditors were to be paid after two months, they were paid immediately at 10% p.a. discount.
(e) Realisation expenses were ₹ 2,500.
Prepare Realisation Account.
Answer:
|
Realisation Account |
|||||
|
Particulars |
|
₹ |
Particulars |
|
₹ |
|
Building |
|
3,00,000 |
Sundry Creditors |
|
1,29,400 |
|
Investment |
|
30,000 |
Mrs. Pradeep's Loan |
40,000 |
|
|
Debtors |
|
71,400 |
Investment Fluctuation Reserve |
8,000 |
|
|
Goodwill |
|
10,000 |
Provision for Doubtful Debts |
4,000 |
|
|
Pradeep’s Capital A/c |
40,000 |
Paresh’s Capital A/c |
27,000 |
||
|
(Mrs. Pradeep's Loan taken over) |
|
(Investment taken over) |
|
|
|
|
Bank A/c |
|
1,27,243 |
Bank A/c |
(Building) |
3,50,000 |
|
(Creditors paid) |
|
|
|
(Debtors) |
71,400 |
|
Pradeep’s Capital A/c |
10,000 |
|
|
|
|
|
(Expenses paid) |
|
|
|
|
|
|
Bank A/c |
|
2,500 |
|
|
|
|
(Expenses paid) |
|
|
|
|
|
|
Gain |
|
38,657 |
|
|
|
|
|
|
6,29,800 |
|
|
6,29,800 |
Question 24:
Ashish and Kanav were partners ina firm sharing profits and losses in the ratio of 3:2. On 31st March, 2026 their Balance Sheet was as follows:
|
BALANCE SHEET OF ASHISH AND KANAV as at 315t March, 2026 |
|||
|
Liabilities |
₹ |
Assets |
₹ |
|
Trade Creditors |
42,000 |
Bank |
35,000 |
|
Employees' Provident Fund |
10,000 |
Stock |
24,000 |
|
Mrs. Ashish's Loan |
9,000 |
Debtors |
19,000 |
|
Kanav's Loan |
35,000 |
Furniture |
40,000 |
|
Workmen's Compensation Fund |
20,000 |
Plant |
2,10,000 |
|
Investment Fluctuation Reserve |
4,000 |
Investments |
32,000 |
|
Capitals: Ashish: 1,20,000 Kanav: 80,000 |
2,00,000 |
Profit and Loss A/c |
10,000 |
|
|
3,70,000 |
|
3,70,000 |
On the above date they decided to dissolve the firm.
(a) Ashish agreed to take over furniture at 38,000 and pay off Mrs. Ashishis loan.
(b) Debtors realised 18,500 and plant realised 10% more.
(c) Kanav took over 40% of the stock at 20% less than the book value. Remaining stock was sold ata gain of 10%.
(d) Trade creditors took over investments in full settlement.
(e) Kanav agreed to take over the responsibility of completing dissolution at an agreed remuneration of 12,000 and to bear realisation expenses. Actual expenses of realisation amounted to 8,000.
Prepare Realisation Account.
(CBSE 2019, Modified)
Answer:
|
Realisation A/c |
|||
|
Dr. |
|
|
Cr. |
|
Particulars |
₹ |
Particulars |
₹ |
|
To Stock To Debtors To Furnisture To Plant To Investiment To Ashish’s capital a/c Mrs. Ashish loan taken To Kanav’s capital a/c Ageed to bear realization expenses To Bank a/c EPF paid To Captial – profit transferred to; Ashish 20,020×3/5=12,012 Kanav 20,020×2/5=8,008
(In the ratio 3:2) |
24,000 19,000 40,000 2,10,000 32,000 9,000
12,000
60,000
20,020
|
By Creditors By employees provident fund By Mrs. Ashish’s loan By Investment fluctuation reserve By Ashish’s capital a/c (Furniture taken) By Kanav’s capital a/c Stock(24,000×40%×80%) By Bank a/c (Assets realised) Debtors = 18,500 Plant = 2,31,000 Stock = 15,840 (24,000×24%×110%) |
42,000 60,000 9,000 4,000
38,000
7,680
2,65,340 |
|
|
4,26,020 |
|
4,26,020 |
Question 25:
A, B and C were partners sharing profits and losses in the ratio of 2:2:1.Their Balance Sheet as at 31st March, 2026 was as follows:
|
BALANCE SHEET OF A, B AND C as at 31st March, 2026 |
|||||
|
Liabilities |
|
₹ |
Assets |
|
₹ |
|
Capitals: A B C Creditors
|
7,50,000 3,00,000 2,50,000 2,00,000 |
13,00,000 |
Cash at Bank Sundry Debtors Less: Provision for Bad Debts Stock Fixed Assets |
3,00,000 1,95,000 5,000 |
1,90,000 3,00,000 7,10,000
|
|
|
|
15,00,000 |
|
|
15,00,000 |
On the above date they dissolved the firm and following amounts were realised:
Fixed Assets 6,75,000; Stock ₹3,39,000; Debtors ₹1,35,000; Creditors were paid ₹1,85,000 in full settlement of their claim. Expenses on realisation amounted to ₹19,000.
Pass the necessary Journal entries on the dissolution of the firm.
(CBSE 2019, Modified)
Answer:
Journal |
|||||
Date |
Particulars |
|
L.F. |
Dr. ₹ |
Cr. ₹ |
31 March |
Realisation a/cTo Sundry Debtors a/cTo Stock A/cTo Fixed assets A/c(Being assets transferred to realization account) |
Dr. |
|
12,05,000 |
1,95,0003,00,0007,10,000 |
31 March |
Provision for bad debts a/cCreditors a/cTo Realisation A/c(Being Liabilities transferred to realization account) |
DrDr. |
|
5,0002,00,000 |
2,05,000 |
31 March |
Realisation a/cTo Bank a/c(Being Creditors and expenses Paid) |
Dr. |
|
2,04,000 |
2,04,000 |
31 March |
Bank a/cTo Realisation A/c(Being various assets realised) |
Dr. |
|
11,49,000 |
11,49,000 |
31 March |
A’s Capital a/cB’s Capital a/cC’s Capital a/cTo Realisation A/c(Being Loss on realization transferred to Capitals account) |
Dr.Dr.Dr. |
|
22,00022,00011,000 |
55,000 |
31 March |
A’s Capital a/cB’s Capital a/cC’s Capital a/cTo Bank A/c(Being balance of capital paid to partners) |
Dr.Dr.Dr. |
|
7,28,0002,78,0002,39,000 |
12,45,000 |
Ts Grewal Solution 2026-2027
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Class 12 / Volume – I