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

Here are the ledger accounts to close the books for the dissolution of the firm: Step 1: Prepare the Realisation Account. 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. |l|r|l|r| Particulars & ₹ & Particulars & ₹ \\ To Plant \& Machinery A/c & 40,000 & By Sundry Creditors A/c & 20,000 \\ To Patents A/c & 6,000 & By Provision for Doubtful Debts A/c & 1,000 \\ To Sundry Debtors A/c & 19,000 & By Cash A/c (Assets Realised): & \\ To Stock A/c & 25,000 & Plant \& Machinery & 45,000 \\ To Cash A/c (Creditors Paid): & & Sundry Debtors & 18,500 \\ ₹20,000 - (5\% of ₹20,000) & 19,000 & Stock & 22,000 \\ To Cash A/c (Realisation Expenses) & 3,500 & By Fast's Capital A/c (Patents taken over) & 5,000 \\ To Fast's Capital A/c (Loss on Realisation) & 600 & & \\ To Quick's Capital A/c (Loss on Realisation) & 400 & & \\ Total & 113,500 & Total & 113,500 \\ 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 × (3)/(5) = ₹600 Quick's share of loss = ₹1,000 × (2)/(5) = ₹400 The Realisation Account is correctly balanced with a loss of ₹1,000. Step 2: Prepare Fast's Loan Account. Fast's Loan is an external liability and must be paid off. |l|r|l|r| Particulars & ₹ & Particulars & ₹ \\ To Cash A/c & 10,000 & By Balance b/d & 10,000 \\ Total & 10,000 & Total & 10,000 \\ Step 3: Prepare Partners' Capital Accounts. 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 × (3)/(5) = ₹6,000 Quick's share = ₹10,000 × (2)/(5) = ₹4,000 Fast's Capital Account |l|r|l|r| Particulars & ₹ & Particulars & ₹ \\ To Realisation A/c (Patents taken over) & 5,000 & By Balance b/d & 30,000 \\ To Realisation A/c (Loss) & 600 & By General Reserve A/c & 6,000 \\ To Cash A/c (Final Settlement) & 30,400 & & \\ Total & 36,000 & Total & 36,000 \\ Fast's Final Settlement: ₹30,000 + ₹6,000 - ₹5,000 - ₹600 = ₹30,400. This matches the hint "Settlement 30400". Quick's Capital Account |l|r|l|r| Particulars & ₹ & Particulars & ₹ \\ To Realisation A/c (Loss) & 400 & By Balance b/d & 25,000 \\ To Cash A/c (Final Settlement) & 28,600 & By General Reserve A/c & 4,000 \\ Total & 29,000 & Total & 29,000 \\ Quick's Final Settlement: ₹25,000 + ₹4,000 - ₹400 = ₹28,600. This matches the hint "Settlement 28600". Step 4: Prepare the Cash Account. All cash receipts and payments are recorded. The account should balance at the end. |l|r|l|r| Particulars & ₹ & Particulars & ₹ \\ To Balance b/d & 6,000 & By Realisation A/c (Creditors Paid) & 19,000 \\ To Realisation A/c (Assets Realised): & & By Realisation A/c (Expenses) & 3,500 \\ Plant \& Machinery & 45,000 & By Fast's Loan A/c & 10,000 \\ Sundry Debtors & 18,500 & By Fast's Capital A/c (Final Settlement) & 30,400 \\ Stock & 22,000 & By Quick's Capital A/c (Final Settlement) & 28,600 \\ Total & 91,500 & Total & 91,500 \\ 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". That's 2 down. 3 left today — send the next one.