21 :- Pradeep and Paresh were partners in a firm decided to dissolve their partnership firm on 1st April 2025. Pradeep was deputed to realise the assets and to pay off the liabilities. He was paid Rs 10,000 as commission for his services. Balance sheet of the firm on 31st March 2025 was as follows
Following terms and conditions were agreed upon :
(a) Pradeep agreed to pay his wife”s loan.
(b) Investment was given to Paresh for Rs 27,000.
(c) Building realised Rs 3,50,000.
(d) Creditors were to be paid ater two months, they were paid immediately at 10% p.a. discount.
(e) Realisation expenses were Rs 2,500.
Prepare Realisation Account.
Solution :-
