A and B are partners sharing profits and losses equally. On 31st March, $\displaystyle 2021$, they decided to dissolve their firm. On the date of dissolution, their Balance Sheet was as under : Balance Sheet of A and B as at 31st March, $\displaystyle 2021$ Amount Amount Liabilities Assets < < Creditors $\displaystyle 3,00,000$ Bank $\displaystyle 3,00,000$ A's Loa n $\displaystyle 60,000$ Stock $\displaystyle 2,40,000$ Mrs. A's Loan $\displaystyle 70,000$ Furniture $\displaystyle 2,00,000$ Capitals : Plant and Machinery $\displaystyle 1,00,000$ A $\displaystyle 2,30,000$ Profit and Loss A/c $\displaystyle 50,000$ B $\displaystyle 2,30,000$ $\displaystyle 4,60,000$ $\displaystyle 8,90,000$ $\displaystyle 8,90,000$ The assets were realised and liabilities were paid as under : (i) Creditors were paid at $\displaystyle 20$% less. (ii) Furniture was taken over by A for ₹ $\displaystyle 1,80,000$ and Plant and Machinery was sold for ₹ $\displaystyle 80$,000. (iii) B took over the stock at ₹ $\displaystyle 1,80$,000. (iv) A promised to pay Mrs. A's loan . (v) Realisation expenses of ₹ $\displaystyle 20,000$ were paid by B. Prepare Realisation Account.

OR

Vidit, Vinay and Siya were partners in a firm. On 31st March, $\displaystyle 2021$, their Balance Sheet was as follows : Balance Sheet of Vidit, Vinay and Siya as at 31st March, $\displaystyle 2021$ Amount Amount Liabilities Assets < < Creditors $\displaystyle 72,000$ Cash $\displaystyle 28,000$ Bank Loan $\displaystyle 18,000$ Stock $\displaystyle 46,000$ General Reserve $\displaystyle 18,000$ Debtors $\displaystyle 34,000$ Building $\displaystyle 30,000$ Capitals : Plant and Machinery $\displaystyle 66,000$ Vidit $\displaystyle 48,000$ Vinay $\displaystyle 16,000$ Siya $\displaystyle 32,000$ $\displaystyle 96,000$ $\displaystyle 2,04,000$ $\displaystyle 2,04,000$ On the above date, Vinay retired and it was agreed that : (i) The value of stock will be reduced by ₹ $\displaystyle 10$,000. (ii) Plant and Machinery will be valued at ₹ $\displaystyle 80$,000. (iii) An amount of ₹ $\displaystyle 4,500$ included in creditors is not likely to be claimed. (iv) Debtors to be valued at ₹ $\displaystyle 30$,000. (v) Amount due to Vinay will be transferred to Vinay's Loan Account. Prepare Revaluation Account and Vinay's Capital Account .

Dr. Realization A/c Cr Amount Particulars Amount Particulars (₹) (₹) To Sundry Assets : By Sundry Liabilities : Stock $\displaystyle 2,40,000$ Creditors Furniture $\displaystyle 2,00,000$ $\displaystyle 3,00,000$ Plant & Machinery $\displaystyle 1,00,000$ $\displaystyle 5,40,000$ Mrs. A’s loan $\displaystyle 3,70,000$ $\displaystyle 70,000$ By A’s Capital A/c To Bank : -Furniture $\displaystyle 1,80,000$ -Creditors $\displaystyle 2,40,000$ By Bank A/c : To A’s Capital A/c : -Plant and $\displaystyle 80,000$ -Mrs. A’s loan $\displaystyle 70,000$ Machinery To B’s Capital A/c : By B’s Capital A/c: $\displaystyle 1,80,000$ -Realization Expenses $\displaystyle 20,000$ -Stock By Loss Transferred to : A’s Capital A/c $\displaystyle 30,000$ B’s Capital A/c $\displaystyle 60,000$ $\displaystyle 30,000$ $\displaystyle 8,70,000$ $\displaystyle 8,70,000$ Q. (b) Vidit, Vinay and Siya……… Ans. Dr. Revaluation A/c Cr. Particulars (₹) Particulars (₹) To Stock A/c $\displaystyle 10,000$ By Plant A/c $\displaystyle 14,000$ To Debtors A/c $\displaystyle 4,000$ By Creditor A/c $\displaystyle 4,500$ To Gain on Revaluation transferred to Partners’ Capital Accounts: Vidit $\displaystyle 1,500$ Vinay $\displaystyle 1,500$ Siya $\displaystyle 1,500$ $\displaystyle 4,500$ $\displaystyle 18,500$ $\displaystyle 18,500$ Dr. Vinay’s Capital A/c Cr. Particulars (₹) Particulars (₹) To Vinay’s Loan A/c $\displaystyle 23,500$ By Balance b/d $\displaystyle 16,000$ By Revaluation A/c $\displaystyle 1,500$ By General Reserve $\displaystyle 6,000$ $\displaystyle 23,500$ $\displaystyle 23,500$