Jhalak and Arsh were partners in a firm sharing profits and losses equally. Their Balance Sheet as at 31st March, $\displaystyle 2025$ was as follows : Balance Sheet of Jhalak and Arsh as at 31st March, $\displaystyle 2025$ Amount Amount Liabilities Assets ( ) ( ) Capitals : Machinery $\displaystyle 12,00,000$ Jhalak $\displaystyle 8,00,000$ Investments $\displaystyle 8,00,000$ Arsh $\displaystyle 12,00,000$ $\displaystyle 20,00,000$ Debtors $\displaystyle 15,00,000$ Jhalak' s Loan $\displaystyle 5,00,000$ Stock $\displaystyle 5,00,000$ Creditors $\displaystyle 13,00,000$ Cash at bank $\displaystyle 5,00,000$ Mrs. Arsh's Loan $\displaystyle 7,00,000$ $\displaystyle 45,00,000$ $\displaystyle 45,00,000$ The firm was dissolved on the above date and the following transactions took place : (i) Debtors were taken over by Creditors in full settlement of their account. (ii) Arson agreed to pay off Mrs. Arsh's loan. (iii) Investments were taken over by Arsh at $\displaystyle 90$% of book value. (iv) Machinery was realised at $\displaystyle 20$% discount. (v) $\displaystyle 50$% of the stock was sold at a profit of $\displaystyle 20$% and the balance was taken over by Jhalak at $\displaystyle 10$% discount. (vi) Realisation expenses were $\displaystyle 20,000$ which were paid by Jhalak. Prepare Realisation Account.

Books of Jhalak and Arsh Dr. Realisation A/c Cr. Particulars Amount Particulars Amount (₹) (₹) To Sundry Assets: $\displaystyle 1$ By Sundry Liabilities: $\displaystyle 1$/$\displaystyle 2$ Machinery $\displaystyle 12,00,000$ Mrs. Arsh’s Loan $\displaystyle 7,00,000$ Investments $\displaystyle 8,00,000$ Creditors $\displaystyle 13,00,000$ $\displaystyle 20,00,000$ Debtors $\displaystyle 15,00,000$ By Bank/Cash A/c $\displaystyle 3,00,000$ Stock $\displaystyle 5,00,000$ $\displaystyle 40,00,000$ (Stock) To Arsh’s Capital A/c $\displaystyle 1$/$\displaystyle 2$ $\displaystyle 7,00,000$ By Bank/Cash A/c $\displaystyle 1$/$\displaystyle 2$ $\displaystyle 9,60,000$ (Mrs. Arsh Loan) (Machinery) To Jhalak’s Capital A/c $\displaystyle 20,000$ By Arsh’s Capital A/c $\displaystyle 1$/$\displaystyle 2$ $\displaystyle 1$ (Expenses) (Investments) $\displaystyle 7,20,000$ By Jhalak’s Capital A/c $\displaystyle 1$/$\displaystyle 2$ $\displaystyle 2,25,000$ (Stock) By Loss transferred to capital A/c : $\displaystyle 1$ Jhalak $\displaystyle 2,57,500$ Arsh $\displaystyle 2,57,500$ $\displaystyle 5,15,000$ $\displaystyle 47,20,000$ $\displaystyle 47,20,000$ . PART B OPTION $\displaystyle 1$ (Analysis of Financial Statements)