Manav and Namit were partners in a firm sharing profits and losses in the ratio of $\displaystyle 3$ : 2. Their Balance Sheet as at 31st March, $\displaystyle 2024$ was as follows : Balance Sheet of Manav and Namit as at 31st March, $\displaystyle 2024$ Amount Amount Liabilities Assets ( ) $\displaystyle 2$ ( ) $\displaystyle 3$ Capitals : Machinery $\displaystyle 8,00,000$ Manav $\displaystyle 4,00,000$ Investments $\displaystyle 5,00,000$ Namit $\displaystyle 6,00,000$ $\displaystyle 10,00,000$ Debtors $\displaystyle 12,00,000$ Bank Overdraft $\displaystyle 9,00,000$ Stock $\displaystyle 3,00,000$ Creditors $\displaystyle 10,00,000$ Cash in Hand $\displaystyle 1,00,000$ $\displaystyle 29,00,000$ $\displaystyle 29,00,000$ The firm was dissolved on the above date and the following transactions took place : (i) Stock was given to creditors in full settlement of their account. (ii) Investments were taken over by Manav at $\displaystyle 120$% of book value. (iii) Bad debts amounted to ₹ $\displaystyle 2,00$,000. (iv) Machinery was realised at $\displaystyle 50$% discount. (v) Realisation expenses amounted to ₹ $\displaystyle 1,00,000$ which were paid by Namit. Prepare Realisation Account.

Dr. Realisation Account Cr. Particulars Amount Particulars Amount (`) (`) To Sundry Assets t/f: ($\displaystyle 1$) By Sundry Liabilities t/f: (½) Machinery $\displaystyle 8,00,000$ Bank Overdraft $\displaystyle 9,00,000$ Investments $\displaystyle 5,00,000$ Creditors $\displaystyle 10,00,000$ $\displaystyle 19,00,000$ Debtors $\displaystyle 12,00,000$ Stock $\displaystyle 3,00,000$ $\displaystyle 28,00,000$ By Manav’s Capital A/c (½) $\displaystyle 6,00,000$ To Namit’s Capital A/c ($\displaystyle 1$) $\displaystyle 1,00,000$ (Investment) (Realisation Expenses) By Bank A/c (Debtors) (½) $\displaystyle 10,00,000$ To Bank A/c (Bank O/d) ($\displaystyle 1$) $\displaystyle 9,00,000$ By Bank A/c (Machinery) (½) $\displaystyle 4,00,000$ To Profit transferred to Partners’ Capital A/c ($\displaystyle 1$) Manav $\displaystyle 60,000$ Namit $\displaystyle 40,000$ $\displaystyle 1,00,000$ $\displaystyle 39,00,000$ $\displaystyle 39,00,000$