C, D, E were partners in a firm sharing profits in the ratio of $\displaystyle 3$ : $\displaystyle 1$ : 1. Their Balance Sheet as at 31st March, $\displaystyle 2022$ was as follows : Balance Sheet of C, D and E as at 31st March, $\displaystyle 2022$ Amount Amount Liabilities Assets ($\displaystyle 1$) ($\displaystyle 1$) Capitals : Machinery $\displaystyle 3,20,000$ C- $\displaystyle 4,00,000$ Investments $\displaystyle 3,00,000$ D $\displaystyle 2,00,000$ Stock $\displaystyle 2,00,000$ E _ $\displaystyle 1,00,000$ $\displaystyle 7,00,000$ Debtors $\displaystyle 1,00,000$ C's Loan $\displaystyle 1,20,000$ Cash at Bank $\displaystyle 2,00,000$ Sundry Creditors $\displaystyle 1,00,000$ Bills payable $\displaystyle 2,00,000$ $\displaystyle 11,20,000$ $\displaystyle 11,20,000$ On the above date the firm was dissolved due to certain disagreement among the partners : (i) Machinery of ₹ $\displaystyle 3,00,000$ were given to creditors in full settlement of their account and remaining machinery was sold for ₹ $\displaystyle 10$,000. (ii) Investments realised ₹ $\displaystyle 2,90$,000. (iii) Stock was sold for ₹ $\displaystyle 1,80$,000. (iv) Debtors for ₹ $\displaystyle 20,000$ proved bad. (v) Realisation expenses amounted to ₹ $\displaystyle 10$,000. Prepare Realisation Account.

Dr. Realisation Account Cr. Amount Amount Particulars Particulars (`) (`) To Machinery A/c ($\displaystyle 1$) $\displaystyle 3,20,000$ By Creditors A/c ($\displaystyle 1$/$\displaystyle 2$) $\displaystyle 1,00,000$ To Investments A/c $\displaystyle 3,00,000$ By Bills Payable A/c $\displaystyle 2,00,000$ To Stock A/c $\displaystyle 2,00,000$ By Bank A/c (machinery) $\displaystyle 10,000$ To Debtors A/c $\displaystyle 1,00,000$ By Bank A/c (investments) $\displaystyle 2,90,000$ To Bank A/c (expenses) ($\displaystyle 1$/$\displaystyle 2$) $\displaystyle 10,000$ By Bank A/c (stock) ($\displaystyle 2$) $\displaystyle 1,80,000$ To Bank A/c (bills payable) ($\displaystyle 1$) $\displaystyle 2,00,000$ By Bank A/c (debtors) $\displaystyle 80,000$ By Partners’ Capital A/c (loss) C $\displaystyle 1,62,000$ D $\displaystyle 54,000$ E $\displaystyle 54,000$ ($\displaystyle 1$) $\displaystyle 2,70,000$ $\displaystyle 11,30,000$ $\displaystyle 11,30,000$