# sir ,what to do if nothing is given about the realisation of assets at the time of dissolution of the firm .according to your solutions ; assets remain unrealised and according to ncert they are realised at book value ..in your notes you stated that both methods can be adoptedso can you answer how both hold corect and help me out of the situation with some example ..thanking you in advance

At the time of dissolution, Assets are realised on the following basis:

Tangible Assets

1. If realizable value is given, we realize them at realizable value.
2. If realizable value is not given, we realize them at the book values.

Intangible Assets

1. If realizable value is given, we realize them at realizable values.
2. If no realizable value is given for the assets, we don’t realize them.

For e.g.; following is the Balance Sheet and some additional information:

 Balance Sheet Liabilities AmountRs Assets AmountRs Sundry Creditors 20,000 Land and Building 26,000 Accounts Payable 25,000 Cash 5,500 Accumulated Profits 15,000 Bills Receivable 25,000 Sundry Debtors 30,000 Capitals : Stock 40,000 Gupta 60,000 Goodwill 20,000 Malik 40,000 1,00,000 Patents 13,500 1,60,000 1,60,000

Assets Realized as under:

Bills Receivables – 24,500

Debtors – 30,000

Stock – 42,000

Patents – 10,000

Solution:

In the above question followings are:

Tangible Assets: Land and Building, Bills Receivables, Sundry Debtors and Stock

Intangible Assets: Goodwill and Patents

Since, the realizable values of Tangible Assets i.e. B/R, Debtors and Stock is given as 24,000 , 30,000 and 42,000 respectively. We realize them at this value.

Realizable Value of Land and Building is not given ad it is also a Tangible Asset so it would be realized at the Book Value i.e. Rs 26,000

Intangible Assets: Realizable value of Patents is given so it would be realized at Rs 10,000 and no value is given for Goodwill so it would not be realized.

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