X, Y & Z are partners in a partnership firm. They decided to dissolve the firm for which firm borne the realisation expenses of ₹20,000. On the date of dissolution following information is available-
X's Capital = ₹5,00,000
Y's Capital = ₹5,00,000
Z's Capital = ₹3,00,000
Creditors = ₹2,00,000
Cash = ₹3,00,000
Profit and loss credit balance = ₹1,50,000
Loan to Y = ₹1,00,000
Land & building = ₹8,00,000
Investments = ₹2,00,000
Debtors = ₹1,00,000
Stock = ₹1,50,000
ADDITIONAL INFORMATION-
- Land & building sold at a profit of 12.5%.
- Debtors are realised at ₹90,000 whereas stock is realised at ₹1,40,000.
- X take over the investments for ₹1,90,000.
- All the creditors are paid by the firm on which firm got discount of 5%.
What is amount of gain on realisation account?
Answer & explanation
Correct answer: option 2
The correct answer is option 2- ₹60,000.
REALISATION ACCOUNT
| Particulars | Amount (₹) | Particulars | Amount (₹) |
| To Assets L & B 8,00,000 Investments 2,00,000 Debtors 1,00,000 Stock 1,50,000 |
12,50,000 | By Creditors | 2,00,000 |
| To Bank A/c (creditors paid) | 1,90,000 | By Bank A/c L & B 9,00,000 Debtors 90,000 Stock 1,40,000 |
11,30,000 |
| To Bank A/c (expenses) | 20,000 | By X's Capital A/c (investments) | 1,90,000 |
| To profit transferred to Partner's Capital A/c (BAL FIG.) X 20,000 Y 20,000 Z 20,000 |
60,000 | ||
| 15,20,000 | 15,20,000 |