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On dissolution of the firm the value of the asser were rupees 58500. X took some of the asset at rupees 36000 which was 10% less than book value and remaining asset at 80% of book value were realised in cash. Realisation account will be created with?
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On dissolution of the firm the value of the asser were rupees 58500. X...

Realisation Account on Dissolution of the Firm

Assets on Dissolution:
- Total value of assets: Rs. 58,500
- X took assets worth Rs. 36,000 at 10% less than book value
- Remaining assets were realised at 80% of book value

Realisation Account Creation:
- Realisation account is a nominal account opened to record the sale of assets and payment of liabilities during the dissolution of a firm.
- It helps in determining the profit or loss on realisation of assets and settling the claims of partners.

Entries in Realisation Account:
- Credit side:
- Realisation of remaining assets at 80% of book value
- Total realisation amount will be credited to the Realisation Account.

- Debit side:
- X taking assets at 10% less than book value
- The difference between book value and the amount realised by X will be debited to the Realisation Account.

Calculation:
- X took assets worth Rs. 36,000 at 10% less than book value, which means book value = Rs. 40,000
- Realisation of remaining assets at 80% of book value: 80% of Rs. 58,500 = Rs. 46,800

Conclusion:
- Realisation Account will be created with a credit entry of Rs. 46,800 for the realisation of remaining assets and a debit entry for the difference between book value and the amount realised by X.
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Read the following information and answer the questions that follows: Mehta and Menon were partners in a firm sharing profits and losses in the ratio of 7 : 3. They decided to dissolve firm on 31st March, 2016 on that date, their books showed the following ledger account balances :₹Sundry Creditors 27,000Profit & Loss A/c (Dr.) 8,000Cash in hand 6,000Bank Loan 20,000Bills Payable 5,000Sundry Assets 1,98,000Capital A/cs :Mehta 1,12,000Menon 48,000Additional information :(i) Bills payable falling due on 31st May, 2016 retired on the date of dissolution of the firm at a rebate of 6% per annum.(ii) The bankers accepted the furniture (included in sundry assets) having a book value of ₹18,000 in full settlement of the loan given by them.(iii) Remaining assets were sold for ₹ 1,50,000.(iv) Liability on account of outstanding salary not recorded in the books, amounting to ₹15,000 was met.(v) Menon agreed to take over the responsibility of completing the dissolution work to bear all expenses of realization at an agreed remuneration of ₹2,000. The actual realization expenses were ₹1,500 which were paid by the firm on behalf of Menon.Consider the following Accounts:(i) Mehta’s Capital Account(ii) Menon’s Capital Account(iii) Realisation Account(iv) Profit and Loss AccountQ. Which account will be affected by the realisation expenses paid by Menon?

Read the following information and answer the questions that follows: Mehta and Menon were partners in a firm sharing profits and losses in the ratio of 7 : 3. They decided to dissolve firm on 31st March, 2016 on that date, their books showed the following ledger account balances :₹Sundry Creditors 27,000Profit & Loss A/c (Dr.) 8,000Cash in hand 6,000Bank Loan 20,000Bills Payable 5,000Sundry Assets 1,98,000Capital A/cs :Mehta 1,12,000Menon 48,000Additional information :(i) Bills payable falling due on 31st May, 2016 retired on the date of dissolution of the firm at a rebate of 6% per annum.(ii) The bankers accepted the furniture (included in sundry assets) having a book value of ₹18,000 in full settlement of the loan given by them.(iii) Remaining assets were sold for ₹ 1,50,000.(iv) Liability on account of outstanding salary not recorded in the books, amounting to ₹15,000 was met.(v) Menon agreed to take over the responsibility of completing the dissolution work to bear all expenses of realization at an agreed remuneration of ₹2,000. The actual realization expenses were ₹1,500 which were paid by the firm on behalf of Menon.Q. The loss on the realisation transferred to Menon’s Capital Account is

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On dissolution of the firm the value of the asser were rupees 58500. X took some of the asset at rupees 36000 which was 10% less than book value and remaining asset at 80% of book value were realised in cash. Realisation account will be created with?
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