CBSE 2022 · Region 4 · Set 2 · Q7

X, Y and Z were partners in a firm sharing profits and losses in the ratio of $\displaystyle 3$ : $\displaystyle 3$ : 4. On 31st March, $\displaystyle 2022$ their Balance Sheet was as follows : Balance Sheet of X, Y and Z as at 31st March, $\displaystyle 2022$ Amount Amount Liabilities Assets < < Sundry Creditors $\displaystyle 34,000$ Bank $\displaystyle 1,74,000$ Bills Payable $\displaystyle 29,000$ Sundry Debtors $\displaystyle 2,00,000$ General Reserve $\displaystyle 2,00,000$ Bills Receivable $\displaystyle 26,000$ Capitals : Stock $\displaystyle 1,50,000$ X $\displaystyle 3,00,000$ Furniture $\displaystyle 1,28,000$ Y $\displaystyle 3,00,000$ Machinery $\displaystyle 2,00,000$ Z > $\displaystyle 4,00,000$ $\displaystyle 10,00,000$ Land and Building $\displaystyle 3,85,000$ $\displaystyle 12,63,000$ $\displaystyle 12,63,000$ On the above date, Z retired on the following terms : (i) A provision of $\displaystyle 3$% on debtors will be created for bad and doubtful debts. (ii) Stock will be reduced by ₹ $\displaystyle 5,000$ and furniture by ₹ $\displaystyle 2$,000. (iii) Land and building will be brought up to ₹ $\displaystyle 4,00,000$ and machinery will be brought down to ₹ $\displaystyle 1,80$,000. Prepare Revaluation Account and Z s Capital Account, transferring the amount due to his loan account.

OR

Sonu, Monu and Ashu were partners in a firm sharing profits and losses in the ratio of $\displaystyle 5$ : $\displaystyle 3$ : 2. On 31st March, $\displaystyle 2022$ their Balance Sheet was as follows : Balance Sheet of Sonu, Monu and Ashu as at 31st March, $\displaystyle 2022$ Amount Amount Liabilities Assets < < Creditors $\displaystyle 35,000$ Bank $\displaystyle 22,000$ General Reserve $\displaystyle 25,000$ Stock $\displaystyle 25,000$ Debtors $\displaystyle 20,000$ Capitals : Less : Provision Sonu $\displaystyle 50,000$ for bad debts $\displaystyle 2,000$ $\displaystyle 18,000$ Monu $\displaystyle 30,000$ Furniture $\displaystyle 15,000$ Ashu > $\displaystyle 20,000$ $\displaystyle 1,00,000$ Land and Building $\displaystyle 80,000$ $\displaystyle 1,60,000$ $\displaystyle 1,60,000$ On the above date, the firm was dissolved on the following terms : (i) Land and Building realised for ₹ $\displaystyle 85,000$, Furniture realised for ₹ $\displaystyle 6,000$ and Debtors realised full amount. (ii) Stock was taken over by Sonu at book value. There was an unrecorded asset which was taken over by Ashu for ₹ $\displaystyle 3$,000. (iii) Monu agreed to bear all realisation expenses. For his services Monu was paid ₹ $\displaystyle 2$,000. Actual expenses on realisation amounted to ₹ $\displaystyle 2$,200. (iv) Creditors were paid at $\displaystyle 2$% less. Prepare Realisation Account.