Pradeep and Rajesh were partners in a firm sharing profits and losses in the ratio of ` 3 : 2` .
Channel: Doubtnut
Date: 2020-03-29

Pradeep and Rajesh were partners in a firm sharing profits and losses in the ratio of ` 3 : 2` . They decided to dissolve their partnership firm on 31st March 2018 . Pradeep was deputed to realise the assets and to pay off the liabilities . He was paid ? 1,000 as commission for his services . The financial position of the firm on 31st March , 2018 was as follows : Following terms and conditions were agreed upon : (a) Pradeep agreed to pay off his wife loan . (b) Half of the debtors realised ? 12, 000 and remaining debtors were used to pay off 25% of the creditors. (c) Investment sold to Rajesh for ? 27,000 . (d) Building realised ? 1, 52, 000 . (e) Remaining creditors were to be paid after two months , they were paid immediately at 10% p.a discount . (f) Bills receivables were settled at a loss of ? 1,400 . (g) Realisation expenses amounted to ? 2,500. Prepare Realisation Account .