Guru, Samta and Prakash were partners in a firm sharing profits and losses in the ratio of 2 : 3 : 5. On 31st March, 2024, their Balance Sheet was as follows:
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Balance Sheet of Guru, Samta and Prakash as at 31\textsuperscript{st March, 2024}
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Liabilities & Amount (₹) & Assets & Amount (₹)
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Creditors & 4,20,000 & Cash at Bank & 3,10,000
Mrs. Guru’s Loan & 5,00,000 & Stock & 6,00,000
Samta’s Loan & 4,40,000 & Debtors & 3,90,000
& & Less: Provision for doubtful debts & (10,000)
& & & 3,80,000
Capitals: & & Land and Building & 4,14,000
Guru & 3,00,000 & Plant and Machinery & 9,00,000
Samta & 5,00,000 & &
Prakash & 4,44,000 & &
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Total & 26,04,000 & Total & 26,04,000
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On the above date the firm was dissolved and the following transactions took place :
(i) Debtors were taken over by creditors in full settlement of their account.
(ii) 50% of stock was taken over by Samta at 10% less than book value. Remaining stock sold at 20% profit.
(iii) Land and Building taken over by Prakash for ₹ 20,00,000.
Plant and Machinery sold as scrap for ₹ 1,00,000.
(iv) Guru agreed to pay off Mrs. Guru’s loan.
(v) Realisation expenses amounted to ₹ 56,000.
Prepare the Realisation Account.
