Mita and Sita, sharing profits in the ratio of 2:1, decided to dissolve their partnership firm on 31st March, 2022, on which date their Balance Sheet was as under:
The partnership firm was dissolved on the date of the balance Sheet subject to the following adjustments:
(a) Trade creditors accepted plant and machinery at an agreed valuation of 10% less than the book value and the balance in cash in full settlement of their claims (b) Debtors of ₹ 1,000 proved bad. (c) Sita took over the stock at a discount of 20%. (d) Realisation expenses of ₹1,100 were paid by the firm.
You are required to prepare the Realisation Account.
