Declining a Royal Gift
This excerpt from a sufi text describes the proceedings at Shaikh Nizamuddin Auliya’s hospice in 1313 : I (the author, Amir Hasan Sijzi) had the good fortune of kissing his (Shaikh Nizamuddin Auliya’s) feet ... At this time a local ruler had sent him the deed of ownership to two gardens and much land, along with the provisions and tools for their maintenance. The ruler had also made it clear that he was relinquishing all his rights to both the gardens and land. The master ... had not accepted that gift. Instead, he had lamented: “What have I to do with gardens and fields and lands ? ... None of our ... spiritual masters had engaged in such activity.”
Then he told an appropriate story: “... Sultan Ghiyasuddin, who at that time was still known as Ulugh Khan, came to visit Shaikh Fariduddin (and) offered some money and ownership deeds for four villages to the Shaikh, the money being for the benefit of the dervishes (sufis), and the land for his use. Smiling, Shaikh al Islam (Fariduddin) said: ‘Give me the money. I will dispense it to the dervishes. But as for those land deeds, keep them. There are many who long for them. Give them away to such persons.’”

Rishika and Shivika were partners in a firm sharing profits and losses in the ratio of 3 : 2. Their Balance Sheet as at 31st March, 2024 stood as follows:
Balance Sheet of Rishika and Shivika as at 31st March, 2024
| Liabilities | Amount (₹) | Assets | Amount (₹) |
|---|---|---|---|
| Capitals: | Equipment | 45,00,000 | |
| Rishika – ₹30,00,000 Shivika – ₹20,00,000 | 50,00,000 | Investments | 5,00,000 |
| Shivika’s Husband’s Loan | 5,00,000 | Debtors | 35,00,000 |
| Creditors | 40,00,000 | Stock | 8,00,000 |
| Cash at Bank | 2,00,000 | ||
| Total | 95,00,000 | Total | 95,00,000 |
The firm was dissolved on the above date and the following transactions took place:
(i) Equipements were given to creditors in full settlement of their account.
(ii) Investments were sold at a profit of 20% on its book value.
(iii) Full amount was collected from debtors.
(iv) Stock was taken over by Rishika at 50% discount.
(v) Actual expenses of realisation amounted to ₹ 2,00,000 which were paid by the firm. Prepare Realisation Account.