CBSE 2024 · Region 3 · Set 3 · Q23

David, Eden and Flora were partners in a firm sharing profits and losses in the ratio of $\displaystyle 2$ : $\displaystyle 2$ : 1. On 31st March, $\displaystyle 2023$, their Balance Sheet was as follows : Balance Sheet of David, Eden and Flora as at 31st March, $\displaystyle 2023$ Amount Amount Liabilities Assets (<) (<) Capital : Fixed Assets $\displaystyle 10,00,000$ David $\displaystyle 6,00,000$ Investments $\displaystyle 5,00,000$ Eden $\displaystyle 6,00,000$ Stock $\displaystyle 3,00,000$ Flora $\displaystyle 6,00,000$ $\displaystyle 18,00,000$ Bills Receivable $\displaystyle 2,00,000$ General Reserve $\displaystyle 3,00,000$ Cash at Bank $\displaystyle 2,00,000$ Bills Payable $\displaystyle 1,00,000$ $\displaystyle 22,00,000$ $\displaystyle 22,00,000$ On the above date, the firm was dissolved on the following terms : (i) Fixed Assets were realised at $\displaystyle 15$% less than the book value. (ii) Trade Receivables were realised at book value. (iii) Investments were taken over by Flora at ₹ $\displaystyle 6,00$,000. (iv) David took over $\displaystyle 50$% of the stock at ₹ $\displaystyle 1,80$,000. The remaining stock was taken over by Eden at ₹ $\displaystyle 95$,000. (v) Expenses of realisation amounted to ₹ $\displaystyle 25,000$ and were paid by Flora. Prepare Realisation Account.