BALANCE SHEET as at 31st March, 2019
| Liabilities | Amount ( Rs.) | Assets | Amount ( Rs.) |
| Creditors | 38,000 | Cash at Bank | 11,500 |
| M Rs. A’s Loan | 10,000 | Stock | 6,000 |
| B’s Loan | 15,000 | Debtor Rs. | 19,000 |
| Reserve | 5,000 | Furniture | 4,000 |
| Capital A/c : | Plant | 28,000 | |
| A’s Capital 10,000 | Investments | 10,000 | |
| B’s Capital 8,000 | 18,000 | Profit and Loss A/c | 7,500 |
| 86,000 | 86,000 |
The firm was dissolved on 31st March, 2019 and both the partners agreed to the following:
(a) A took Investments at an agreed value of Rs. 8,000. He also agreed to settle Mr. A’s Loan.
(b) Other assets realised as: Stock − Rs. 5,000; Debtor − Rs. 18,500; Furniture − Rs. 4,500; Plant − Rs. 25,000.
(c) Expenses of realisation came to Rs. 1,600.
(d) Creditors agreed to accept Rs. 37,000 in full settlement of their claims.
Prepare Realisation Account, Partners’ Capital Accounts and Bank Account.
Solution
