Ravneet and Mar meet were partners in a firm sharing profits and losses in the ratio of $\displaystyle 7$ : 3. On 31st March, $\displaystyle 2025$, their Balance Sheet was as follows : Balance Sheet of Ravneet and Mar meet as on 31st March, $\displaystyle 2025$ Liabilities Amount Assets Amount (z) R) Creditors $\displaystyle 4,50,000$ Cash at Bank $\displaystyle 2,50,000$ Capitals : Stock $\displaystyle 2,50,000$ Ravneet $\displaystyle 5,00,000$ Debtors $\displaystyle 2,00,000$ Mar meet $\displaystyle 3,00,000$ $\displaystyle 8,00,000$ Plant & Machinery $\displaystyle 5,50,000$ $\displaystyle 12,50,000$ $\displaystyle 12,50,000$ On the above date, the firm was dissolved. The plant and machinery was sold at ₹ $\displaystyle 4,87,000$ and stock at $\displaystyle 20$% less than the book value. Debtors realised ₹ $\displaystyle 1,40$,000. Ravneet agreed to bear all realisation expenses for which he was allowed a commission of ₹ $\displaystyle 9$,000. Actual realisation expenses amounted to ₹ $\displaystyle 7$,500. Prepare Realisation Account and Partners' Capital Accounts.

Books of Ravneet and Manmeet Dr. Realisation Account Cr. Particulars Amount Particulars Amount (₹) (₹) To Sundry Assets ……… ½ By Sundry Liabilities ………..… ½ Stock $\displaystyle 2,50,000$ Creditors $\displaystyle 4,50,000$ Debtors $\displaystyle 2,00,000$ Plant and Machinery5,$\displaystyle 50,000$ $\displaystyle 10,00,000$ By Cash/ Bank A/c ..½ Plant and Machinery. $\displaystyle 4,87$,000.. Stock $\displaystyle 2,00,000$… ½ ……..½ ½ $\displaystyle 8,27,000$ To Cash/ Bank A/c Debtors $\displaystyle 1,40,000$… Creditors $\displaystyle 4,50,000$ By Loss transferred to Partners’ Capital A/c’s……........................ ½ Ravneet $\displaystyle 1,27,400$ To Ravneet’s Capital A/c.. - Commission $\displaystyle 9,000$ Manmeet $\displaystyle 54,600$ $\displaystyle 1,82,000$ $\displaystyle 14,59,000$ $\displaystyle 14,59,000$ Dr. Partners’ Capital Accounts Cr. Particulars Ravneet Manmeet Particulars Ravneet Manmeet (₹) (₹) (₹) (₹) ½ $\displaystyle 1,27,400$ $\displaystyle 54,600$ ½ $\displaystyle 5,00,000$ $\displaystyle 3,00,000$ To RealisationA/c By Balance b/d (Loss) ½ $\displaystyle 3,81,600$ $\displaystyle 2,45,400$ ½ $\displaystyle 9,000$ - To Cash/ Bank A/c By Realisation A/c (Commission) $\displaystyle 5,09,000$ $\displaystyle 3,00,000$ $\displaystyle 5,09,000$ $\displaystyle 3,00,000$ . Alternatively, Dr. Partners’ Capital Accounts Cr. Particulars Ravneet Manmeet Particulars Ravneet Manmeet (₹) (₹) (₹) (₹) ½ $\displaystyle 1,27,400$ $\displaystyle 54,600$ By Balance b/d $\displaystyle 5,00,000$ $\displaystyle 3,00,000$ To RealisationA/c (Loss) $\displaystyle 7,500$ - $\displaystyle 9,000$ - To Cash/ Bank A/c ½ By Realisation A/c ½ (Commission) ½ $\displaystyle 3,74,100$ $\displaystyle 2,45,400$ To Cash/ Bank A/c $\displaystyle 5,09,000$ $\displaystyle 3,00,000$ $\displaystyle 5,09,000$ $\displaystyle 3,00,000$