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4 The following is the Balance Sheet of Swara and Swaraj as on 31st March 2018.

Balance Sheet as on 31st March 2018.
Liabilities Amount ` Assets Amount `

Capital Account : Furniture 6,000
Swara 6,000 Patents 1,200
Swaraj 5,000 Goodwill 2,000
General Reserve 2,000 Debtors 3,800
Swara’s Loan A/c 2,000 Less : R. D. D. 200 3,600
Creditors 3,000 Stock 5,000
Bills Payable 1,000 Bank 1,200
19,000 19,000

On 1st April 2018 the firm was dissolved.
1. Swara took over Patents at a value of ` 2,000.
2. The assets were realisaed as under :
Furniture ` 7,000, Goodwill ` 3,000, Stock ` 4,000 and Debtors ` 3,000.
3. Creditors were paid off at a discount of 10% and other liabilities were paid in full.
4. Expenses for realisation amounted to ` 1,500 which is borne by Swaraj.

Prepare Realisation A/c, Partnes’ Capital A/c and Bank A/c

Solution 4 In the books of Swara and Swaraj
Dr. Realisation Account Cr.
Particulars Amount Amount Particulars Amount Amount
(`) (`) (`) (`)
To Sundry Assets A/c By Sundry Liabilities A/c
Furniture 6,000 Creitors 3,000
Patents 1,200 Bills Payable 1,000 4,000
Goodwill 2,000 By R. D. D. 200
Debtors 3,800 By Swar’s Capital A/c 2,000
Stock 5,000 18,000 (Partents taken over)
To Swaraj’s Capital A/c 1,500 By Bank A/c :
(Realisation Furniture 7,000
Expenses) Goodwill 3,000
To Bank A/c Stock 4,000
Creditors 2,700 Debtors 3,000 17,000
Bill Payable 1,000 3,700

23,200 23,200

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