| Liabilities | Amount (Rs.) | Assets | Amount (Rs.) |
| Bills Payable | 40,000 | Cash at Bank | 40,000 |
| Loan from Bank | 30,000 | Stock | 19,000 |
| General Reserve | 9,000 | Sundry Debtors 42,000 | |
| Capital A/cs: | Less: Provision for Doubtful Debts (2,000) | 40,000 | |
| P 44,000 | Building | 40,000 | |
| Q 36,000 | Plant and Machinery | 40,000 | |
| R 20,000 | 1,00,000 | ||
| 1,79,000 | 1,79,000 | ||
The partners dissolved the business. Assets realised − Stock Rs. 23,400; Debtors 50%; Fixed Assets 10% less than their book value. Bills Payable were settled for Rs. 32,000. There was an Outstanding Bill of Electricity Rs. 800 which was paid off. Realisation expenses Rs. 1,250 were also paid.
Prepare Realisation Account, Partner’s Capital Accounts and Bank Account.
Solution
