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Dissolution of a Partnership Firm – Chapter 7
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Ramesh and Umesh were partners in a firm sharing profits in the ratio of their capitals. On 31st March, 2026, their Balance Sheet was as follows: (CBSE 2023)
BALANCE SHEET OF RAMESH AND UMESH
| Liabilities | ₹ | ₹ | Assets | ₹ |
|---|---|---|---|---|
| Creditors | 1,70,000 | Bank | 1,10,000 | |
| Workmen Compensation Reserve | 2,10,000 | Debtors | 2,40,000 | |
| General Reserve | 2,00,000 | Stock | 1,30,000 | |
| Ramesh’s Current Account | 80,000 | Furniture | 2,00,000 | |
| Capital A/cs: | Machinery | 9,30,000 | ||
| Ramesh | 7,00,000 | Umesh’s Current Account | 50,000 | |
| Umesh | 3,00,000 | 10,00,000 | ||
| 16,60,000 | 16,60,000 |
On the above date, the firm was dissolved.
(a) Ramesh took 50% of stock at 10,000 less than book value.
(b) Furniture was taken by Umesh for 50,000 and machinery was sold for ₹4,50,000.
(c) Creditors were paid in full.
(d) There was an unrecorded bill for repairs for ₹ 1,60,000 which was settled and paid at ₹ 1,40,000,
Prepare Realisation Account.
Hints:
1. Balance Stock (₹ 65,000) will be realised at Book Value, being tangible asset.
2. Debtors will be realised at book value, le, ₹2,40,000.1
This topic was modified 2 months ago 7 times by Wings Unschool Admin
Posted : 17/07/2026 11:13 am