Write short note: Realisation account. - Vidyadip

Question

Write short note: Realisation account.

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Answer

Definition: An account opened at the time of dissolution of a partnership firm to close the books of accounts and find the profit or loss on the disposal of assets and payment of liabilities.
Process: 1. All assets (except Cash/Bank) are transferred to the Debit side at book value. 2. All outside liabilities are transferred to the Credit side at book value. 3. Realized value of assets is credited, and actual payments of liabilities are debited.
Closing: The balancing figure represents profit or loss on realization, which is transferred to partners’ capital accounts in their profit-sharing ratio.

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You are provided comparative balance sheets as at $31-3-2016$ and $31-3-2017$ of Shivani Company Limited ascertain balancing figures :

Particulars			Note	$31-3-2016$	$31-3-2017$	Increase/	Increase/
Particulars			No.	$(Rs.)$	$(Rs.)$	Decrease$(Rs.)$	Decrease$(\%)$
$(1)$		Equity and Liabilities
	$1.$	Shareholders' funds :
		$(a)$ Share capital
		Equity share capital		$24,00,000$	$?$	$?$	$25.00$
		$(b)$ Reserves and surplus		$12,00,000$	$?$	$?$	$25.00$
	$2.$	Non-current liabilities
		$10\%$ debentures		$10,00,000$	$?$	$?$	$20.00$
		$11\%$ bank loan		$12,00,000$	$?$	$?$	$25.00$
	$3.$	Current liabilities		$2,00,000$	$?$	$?$	$5.00$
		Total		$60,00,000$	$?$	$?$	$23.50$
$(2)$		Assets :
	$1.$	Non-current assets :
		Tangible assets		$?$	$32,10,000$	$2,10,000$	$?$
		Intangible assets		$?$	$22,00,000$	$2,00,000$	$?$
	$2.$	Current assets		$?$	$20,00,000$	$10,00,000$	$?$
		Total		$?$	$74,10,000$	$14,10,000$	$?$

Explain common size statement.

Ram and Rahim are the partners of a partnership firm. Profit-loss sharing ratio between them is $4:3.$ The following are the balances in the books of the firm as on $31-3-2017.$

Profit-loss A/c $($debit balance$) 14,000$
Reserve fund $42,000$
Workers' profit sharing fund $21,000$
Workers' accident compensation fund $26,000$

On the above date, Ram and Rahim decided on a new profit sharing ratio of $1.1.$ A claim of $5000$ is outstanding against the workers' accident compensation fund. Pass journal entries showing distribution of accumulated profit or losses in the books of the firm.

Aakash, Prakash and Vikash are the partners in a firm sharing profits and losses in the ratio of $3:3:2.$ All partners have decided to change their profit and loss ratio to $1:1:1.$ Calculate pain made by the partners.

Vandana, Rudra and Arvind are partners of a firm. Their capital ratio is $2: 1: 3.\ 6 \%$ commission is payable to Rudra from profit after deduction of his such commission. If total profit for the year ending on $31-3-2020$ is $₹ 62,964 ,$ determine the total amount payable to Mr. Rudra.

Poojan Motors Limited issued $4000, 8 \%$ debentures of $₹ 250$ each. The board of directors purchased $1500$ own debentures from the market at a price of $₹ 225$ each for investment purpose. After few months, company sold these purchased debentures at $₹ 270$ per debenture in the market.
Record necessary entries from the above transactions.

Describe the different types of financial analysis.

Write the journal entries only for the issue of debentures from the following transactions $($Without narration$)$
$(1)$ Issued $9,500, 9.5\%$ debentures of $₹ 100$ each at discount of $10\%$ redeemable at par.

On $1st$ January, $2014$ R. K. P. Ltd. issued $30,000, 9 \%$ debentures of $₹ 100$ each. According to the terms of the issue of debentures, the debentures were to be redeemed at $5 \%$ premium by giving $6$ months notice at any time after $5$ years. The redemption was to be made by cash or by issue of new shares or by issue of new debentures as per the option to be exercised by the debentureholders.
On $1st$ March, $2019$ the company issued the required notice to the debentureholders for the redemption of the debentures. The company gave three options for the redemption of the debentures on $1st$ September, $2019 : (1)$ Redemption money will be paid in cash $(2)$ Equity shares of $₹ 10$ each will be issued at $₹ 12$ per share $(3)$ New $8 \%$ debentures of $₹ 100$ each will be issued at a price of $₹ 96$ per debenture.
Holders of $9000$ debentures accepted equity shares, holders of $12,000$ debentures accepted the new $8 \%$ debentures and the rest of debentureholders opted for cash as consideration.
With the assumption that company has fulfilled the provisions of Companies Act and SEBI guidelines, write the necessary journal entries to record the above transactions in the books of the company.

Pass journal entries for the following of firm in the case of firm's dissolution:
$1.$ The value of laptop is $Rs. 35,000.$ One partner has taken it for $Rs. 25,000.$
$2.$ A partner has accepted to pay loan of his Smt. $Rs. 40,000,$ which was given to the firm.
$3.$ Goodwill is not disclosed in the book. But $Rs. 50,000$ are realised during dissolution.