| Liabilities | Rs. | Assets | Rs. |
| Long’s Capital A/c | 1,20,000 | Fixed Assets | 3,00,000 |
| Short’s Capital A/c | 1,40,000 | Other Assets | 60,000 |
| General Reserve | 1,00,000 | ||
| 3,60,000 | 3,60,000 |
During the year, Long withdrew Rs. 40,000 and Short withdrew Rs. 50,000. Profit for the year was Rs. 1,50,000 out of which Rs. 1,00,000 was transferred to General Reserve.
Solution
