| Liabilities | Amount (Rs.) | Assets | Amount (Rs.) |
| Capital A/c : | Building | 20,000 | |
| A 12,410 | Plant | 31,220 | |
| B 8,650 | Goodwill | 10,000 | |
| C 80,620 | 1,01,680 | 100 Shares in X Ltd. (At cost) | 2,400 |
| Creditors | 11,210 | 1,000 Shares in Y Ltd. (At cost) | 10,000 |
| Reserve for Depreciation on Plant | 20,000 | Stock | 11,240 |
| Debtors | 8,740 | ||
| Bank | 1,210 | ||
| Patents | 38,080 | ||
| 1,32,890 | 1,32,890 |
It was agreed to dissolve the partnership as on 31st March, 2019 and the terms of dissolution were−
(a) A to take over the building at an agreed amount of Rs. 31,500.
(b) B, who was to carry on the business, to take over the Goodwill, Stock and Debtors at book value, the Patents at Rs. 30,000 and Plant at Rs. 5,000. He was also to pay the Creditors .
(c) C to take over shares in X Ltd. at Rs. 15 each.
(d) The shares in Y Ltd. to be divided in the profit-sharing ratio.
Show Ledger Accounts recording the dissolution in the books of the firm.
Solution
