Page 7 - ha diss

On the above date the firm was dissolved
(i)Debtors were realised at a discount of 5%, 50% of the stock was taken over by Hanif
at 10% less than the book value. Remaining stock was sold for Rs 65,000.

(ii)Furniture was taken over by Jubed for Rs 1,35,000. Machinery was sold as scrap for
Rs 74,000.

(iii)Creditors were paid in full.
(iv)Expenses on realisation Rs 8,000 were paid by Hanif. Prepare realisation account.

30. Shanti and Satya were partners in a firm sharing profits in the ratio of 4:1. On 31st
March, 2013 their balance sheet was as follows:

On the above date the firm was dissolved

(i)Shanti took over 40% of the stock at 10% less than its book value and the remaining
stock was sold for Rs 40,000. Furniture realised Rs 80,000.
(ii)All unrecorded investment was sold for Rs 20,000. Machinery was sold at a loss of

Rs 60,000.
(iii) Debtors realised Rs 55,000.

(iv) There was an outstanding bill for repairs for which Rs 19,000 were paid. Prepare
realisation account.