Madhur and Neeraj were partners in a firm sharing profits and losses in the ratio of 3 : 2. The Balance Sheet as at 31st March, 2024 was as follows:
Balance Sheet of Madhur and Neeraj as at 31st March, 2024| Liabilities | Amount (₹) | Assets | Amount (₹) |
|---|
| Capitals: | | Machinery | 7,00,000 |
|---|
| Madhur | 9,00,000 | Investments | 4,00,000 |
|---|
| Neeraj | 8,00,000 | Debtors | 11,00,000 |
|---|
| Creditors | 6,00,000 | Stock | 2,00,000 |
|---|
| Bills Payable | 2,00,000 | Cash at Bank | 1,00,000 |
|---|
| Total | 25,00,000 | Total | 25,00,000 |
|---|
The firm was dissolved on the above date and the following transactions took place:
Machinery was taken over by creditors in full settlement of their account.
Investments were taken over by Neeraj at \u20b9 5,00,000.
One of the debtors of \u20b9 1,00,000 was untraceable. Remaining debtors were realised at 10% less.
Stock was taken over by Madhur at 50% discount.
Realisation expenses amounting to \u20b9 1,00,000 were paid by Madhur.
Prepare Realisation Account.