question_answer

The balance sheet of Ajit, Vijeet, and Sujeet on the date of dissolution was as follows: Balance Sheet as at?..

Liabilities		Amt (Rs.)	Assets	Amt (Rs.)
Creditors		52,000	Bank	6,500
Employees Provident Fund		26,000	Debtors	41,600
Outstanding Expenses		13,000	Stock	54,600
Capital A/cs			Prepaid Expenses	2,600
Ajeet	1,05,950		Furniture	13,000
Sujeet	76,050	1,82,000	Machinery	1,09,200
			Profit and Loss A/c	19,500
			Vijeet?s Capital A/c	26,000
		2,73,000		2,73,000

Sujeet was appointed to realise the assets and pay the liabilities. He was entitled to receive 5% commission on the amounts realised from sale of assets. He was also to bear the expenses of realisation. Assets realised as follows: Machinery- Rs. 91,000 ; debtors-Rs. 26,000 ; furniture-Rs. 9,7 50, stock at 60% of its book value. Expenses of realisation amounted to Rs. 1,950. An office typewriter realised Rs. 3,250 which was not shown in the books of accounts. There was a contingent liability of Rs. 6,500 for bills discounted for which Rs. 2,600 had to be paid. Prepare realisation account.

Answer:

Dr                                                         Realisation Account                                                                Cr

Particulars		Amt (Rs.)	Particulars		Amt (Rs.)
To Debtors		41,600	By Crditors		52,000
To Stock		54,600	By Employees Provident Fund		26,000
To Prepaid Expenses		2,600	By Outstanding Expenses		13,000
To Furniture		13,000	By Bank
To Machinery		1,09,200	Debtors	26,000
To Bank			Stock	32,760
Creditors	52,000		Furniture	9,750
Employees             Provident Fund	26,00		Machinery	91,000
Outstanding Expenses	13,000		Typewriter	3,250	1,62,760
Contingent Liability for Bills			By Loss Transferred to
Discounted	2,600	93,600	Vijeet?s Capital A/c	34,489
To Sujeet Capital A/c \[(1,62,760\times 5%)\]		8,138	Sujeet?s Capital A/c	34,489	68,978
		3,22,738			3,22,738