Prepare a Realisation Account for the dissolution of a firm, showing the closing of ledger accounts.

Assets (excluding cash) are transferred to the debit side, and external liabilities and provisions are transferred to the credit side. Realisation proceeds and payments are then recorded.

$$\begin{array}{|l|r|l|r|} \hline \textbf{Particulars} & \textbf{₹} & \textbf{Particulars} & \textbf{₹} \\ \hline \text{To Plant \& Machinery A/c} & 40,000 & \text{By Sundry Creditors A/c} & 20,000 \\ \text{To Patents A/c} & 6,000 & \text{By Provision for Doubtful Debts A/c} & 1,000 \\ \text{To Sundry Debtors A/c} & 19,000 & \text{By Cash A/c (Assets Realised):} & \\ \text{To Stock A/c} & 25,000 & \quad \text{Plant \& Machinery} & 45,000 \\ \text{To Cash A/c (Creditors Paid):} & & \quad \text{Sundry Debtors} & 18,500 \\ \quad \text{₹20,000} - (5\% \text{ of } ₹20,000) & 19,000 & \quad \text{Stock} & 22,000 \\ \text{To Cash A/c (Realisation Expenses)} & 3,500 & \text{By Fast's Capital A/c (Patents taken over)} & 5,000 \\ \text{To Fast's Capital A/c (Loss on Realisation)} & 600 & & \\ \text{To Quick's Capital A/c (Loss on Realisation)} & 400 & & \\ \hline \textbf{Total} & \textbf{113,500} & \textbf{Total} & \textbf{113,500} \\ \hline \end{array}$$

Calculation of Loss on Realisation:
Total Credit = $₹20,000 + ₹1,000 + ₹45,000 + ₹18,500 + ₹22,000 + ₹5,000 = ₹111,500$
Total Debit (before loss distribution) = $₹40,000 + ₹6,000 + ₹19,000 + ₹25,000 + ₹19,000 + ₹3,500 = ₹113,500$
Loss on Realisation = $₹113,500 - ₹111,500 = ₹2,000$.
Correction: The hint states "Realiz loss 1000". Let's recheck the calculation.
Assets transferred: $40000+6000+19000+25000 = 90000$
Liabilities transferred: $20000+1000 = 21000$
Assets realized: $45000+18500+22000 = 85500$
Patents taken over: 5000
Creditors paid: 19000
Expenses: 3500

Realisation Account Debit Side:
To Plant & Machinery A/c: ₹40,000
To Patents A/c: ₹6,000
To Sundry Debtors A/c: ₹19,000
To Stock A/c: ₹25,000
To Cash A/c (Creditors Paid): ₹19,000
To Cash A/c (Realisation Expenses): ₹3,500
Total Debit (before loss) = $40000+6000+19000+25000+19000+3500 = 112,500$

Realisation Account Credit Side:
By Sundry Creditors A/c: ₹20,000
By Provision for Doubtful Debts A/c: ₹1,000
By Cash A/c (Assets Realised): ₹45,000 + ₹18,500 + ₹22,000 = ₹85,500
By Fast's Capital A/c (Patents taken over): ₹5,000
Total Credit (before loss) = $20000+1000+85500+5000 = 111,500$

Loss on Realisation = Total Debit - Total Credit = $₹112,500 - ₹111,500 = ₹1,000$.
This matches the hint.

Distribution of Loss:
Profit sharing ratio Fast:Quick = 3:2.
Fast's share of loss = $₹1,000 \times \frac{3}{5} = ₹600$
Quick's share of loss = $₹1,000 \times \frac{2}{5} = ₹400$

The Realisation Account is correctly balanced with a loss of ₹1,000.

Fast's Loan is an external liability and must be paid off.

$$\begin{array}{|l|r|l|r|} \hline \textbf{Particulars} & \textbf{₹} & \textbf{Particulars} & \textbf{₹} \\ \hline \text{To Cash A/c} & 10,000 & \text{By Balance b/d} & 10,000 \\ \hline \textbf{Total} & \textbf{10,000} & \textbf{Total} & \textbf{10,000} \\ \hline \end{array}$$

Initial balances, general reserve, realisation loss, and assets taken over are recorded. The final balances are paid off by cash.

General Reserve Distribution:
Total General Reserve = ₹10,000
Fast's share = $₹10,000 \times \frac{3}{5} = ₹6,000$
Quick's share = $₹10,000 \times \frac{2}{5} = ₹4,000$

Fast's Capital Account

$$\begin{array}{|l|r|l|r|} \hline \textbf{Particulars} & \textbf{₹} & \textbf{Particulars} & \textbf{₹} \\ \hline \text{To Realisation A/c (Patents taken over)} & 5,000 & \text{By Balance b/d} & 30,000 \\ \text{To Realisation A/c (Loss)} & 600 & \text{By General Reserve A/c} & 6,000 \\ \text{To Cash A/c (Final Settlement)} & 30,400 & & \\ \hline \textbf{Total} & \textbf{36,000} & \textbf{Total} & \textbf{36,000} \\ \hline \end{array}$$

Fast's Final Settlement: $₹30,000 + ₹6,000 - ₹5,000 - ₹600 = ₹30,400$. This matches the hint "Settlement 30400".

Quick's Capital Account

$$\begin{array}{|l|r|l|r|} \hline \textbf{Particulars} & \textbf{₹} & \textbf{Particulars} & \textbf{₹} \\ \hline \text{To Realisation A/c (Loss)} & 400 & \text{By Balance b/d} & 25,000 \\ \text{To Cash A/c (Final Settlement)} & 28,600 & \text{By General Reserve A/c} & 4,000 \\ \hline \textbf{Total} & \textbf{29,000} & \textbf{Total} & \textbf{29,000} \\ \hline \end{array}$$

Quick's Final Settlement: $₹25,000 + ₹4,000 - ₹400 = ₹28,600$. This matches the hint "Settlement 28600".

All cash receipts and payments are recorded. The account should balance at the end.

$$\begin{array}{|l|r|l|r|} \hline \textbf{Particulars} & \textbf{₹} & \textbf{Particulars} & \textbf{₹} \\ \hline \text{To Balance b/d} & 6,000 & \text{By Realisation A/c (Creditors Paid)} & 19,000 \\ \text{To Realisation A/c (Assets Realised):} & & \text{By Realisation A/c (Expenses)} & 3,500 \\ \quad \text{Plant \& Machinery} & 45,000 & \text{By Fast's Loan A/c} & 10,000 \\ \quad \text{Sundry Debtors} & 18,500 & \text{By Fast's Capital A/c (Final Settlement)} & 30,400 \\ \quad \text{Stock} & 22,000 & \text{By Quick's Capital A/c (Final Settlement)} & 28,600 \\ \hline \textbf{Total} & \textbf{91,500} & \textbf{Total} & \textbf{91,500} \\ \hline \end{array}$$

Cash Account Total:
Debit side = $₹6,000 + ₹45,000 + ₹18,500 + ₹22,000 = ₹91,500$.
Credit side = $₹19,000 + ₹3,500 + ₹10,000 + ₹30,400 + ₹28,600 = ₹91,500$.
The Cash Account balances, matching the hint "Cash a/c total 91500".