G and M were partners in a firm sharing profits and losses in the ratio of $\displaystyle 3$:2. On 31st March $\displaystyle 2022$, their balance sheet was as follows : Balance Sheet ofG and M as on 31st March, $\displaystyle 2022$ Liabilities Amount Assets Amount c) c) Creditors $\displaystyle 50,000$ Bank $\displaystyle 75,000$ Outstanding expenses $\displaystyle 45,000$ Other current assets $\displaystyle 4,80,000$ Provision for doubtful debts $\displaystyle 5,000$ machinery $\displaystyle 7,00,000$ $\displaystyle 9$% loan $\displaystyle 15,00,000$ Land and building $\displaystyle 15,00,000$ Capitals : Patents $\displaystyle 10,000$ G $\displaystyle 6,00,000$ Profit and loss account $\displaystyle 15,000$ M $\displaystyle 7,00,000$ $\displaystyle 13,00,000$ Goodwill $\displaystyle 1,20,000$ Total $\displaystyle 29,00,000$ Total $\displaystyle 29,00,000$ On the above date, the firm was dissolved. Other current assets realised $\displaystyle 10$% less. Land and building and machinery were sold at their book value. $\displaystyle 9$% loan was discharged with unrecorded interest of ₹ $\displaystyle 1,35$,000. Expenses on dissolution amounted to ₹ $\displaystyle 10$,000. Prepare Realisation Account.

Dr Realisation A/c Cr Particulars Amount Particulars Amount ₹ ₹ To Sundry Assets A/c …..1 By Sundry Liabilities A/c ……$\displaystyle 1$ Other Current Assets A/c $\displaystyle 4,80,000$ Creditors A/c $\displaystyle 50,000$ Machinery A/c $\displaystyle 7,00,000$ Outstanding Expenses A/c $\displaystyle 45,000$ Land & Building A/c $\displaystyle 15,00,000$ Provision for doubtful debts A/c $\displaystyle 5,000$ Patents A/c $\displaystyle 10,000$ $\displaystyle 9$% Loan A/c $\displaystyle 15,00,000$ $\displaystyle 16,00,000$ Goodwill A/c $\displaystyle 1,20,000$ $\displaystyle 28,10,000$ By Bank A/c ……………… $\displaystyle 1$½ To Bank A/c …………….2 Other Current Assets $\displaystyle 4,32,000$ Creditors $\displaystyle 50,000$ Land and Building $\displaystyle 15,00,000$ O/s Expenses $\displaystyle 45,000$ $\displaystyle 26,32,000$ Machinery $\displaystyle 7,00,000$ $\displaystyle 9$% Loan $\displaystyle 16,35,000$ Dissolution By Loss transferred to Partners’ $\displaystyle 17,40,000$ Expenses $\displaystyle 10,000$ Capital A/c’s…………….½ G $\displaystyle 1,90,800$ $\displaystyle 3,18,000$ M $\displaystyle 1,27,200$ $\displaystyle 45,50,000$ $\displaystyle 45,50,000$