CBSE 2025 · Region 7 · Set 2 · Q23

Raja, Rajan and Rajani were partners in a firm sharing profits and losses in the ratio of $\displaystyle 2$ : $\displaystyle 2$ : 1. On 31st March, $\displaystyle 2024$, their Balance Sheet was as follows : Balance Sheet of Raja, Rajan and Rajani as at 31st March, $\displaystyle 2024$ Amount Amount Liabilities Assets ( ) ( ) Capitals : Land and Building $\displaystyle 9,00,000$ Raja $\displaystyle 3,00,000$ Plant and Machinery $\displaystyle 6,00,000$ Rajan ₹ $\displaystyle 4,00,000$ Furniture $\displaystyle 1,20,000$ Rajani $\displaystyle 5,00,000$ $\displaystyle 12,00,000$ Debtors $\displaystyle 80,000$ Less : General Reserve $\displaystyle 1,60,000$ Provision for doubtful debts $\displaystyle 8,000$ $\displaystyle 72,000$ Creditors $\displaystyle 80,000$ Bills Receivable $\displaystyle 18,000$ R aja's Loan $\displaystyle 3,00,000$ Stock $\displaystyle 1,00,000$ M is. Raja's Loan $\displaystyle 1,90,000$ Bank $\displaystyle 1,30,000$ Outstanding $\displaystyle 10,000$ Wages $\displaystyle 19,40,000$ $\displaystyle 19,40,000$ On the above date, the firm was dissolved. Assets were realised and liabilities were paid off as follows : (i) Land and Building was sold for $\displaystyle 20,00$,000. (ii) Plant and Machinery realised $\displaystyle 40,000$ less than their book value and furniture was taken over by the creditors in full settlement of their account. (iii) Debtors and Bills Receivable realised $\displaystyle 90$,000. (iv) $\displaystyle 60$% of the stock was taken over by Raja at $\displaystyle 90$% of the book value and the remaining stock realised at $\displaystyle 44$,000. (v) Outstanding wages were paid in full. (vi) Mrs. Raja's loan was paid with interest off $\displaystyle 10$,000. (vii) Realisation expenses were $\displaystyle 8$,000. Prepare Realisation Account.