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.
REALISATION ACCOUNT
Dr Cr
ParticularsAmount ParticularsAmount(Rs)(Rs)To debtors A/c60,000By Creditors A/c45,000To Stock A/c85,000By Shanti's Capital A/cTo Furniture A/c1,00,000(Stock 34,000- 3400) 30,600To Machinery A/c1,30,000By Bank A/c (Assets realised ) : To Bank A/c (Payments) Stock40,000 Outstanding bill19,000 Furniture80,000 Creditors45,000––––––––64,000 Investment20,000 Machinery70,000 Debtors55,000––––––––2,65,000By loss Transferred to : Shanti's Capital A/c*78,720 Satya's Capital A/c*19,680––––––––98,400¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯4,39,000¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯4,39,000
Working Note :
Shanti's share of loss = Rs 98,400×45=Rs 78,720
Satya's share of loss = Rs 98,400×15=Rs 19,680