BALANCE SHEET OF SRIJAN, RAMAN AND MANAN as on 31st March, 2017
| Liabilities | Amount (Rs.) | Assets | Amount (Rs.) |
| Capitals: | Capital: Manan | 10,000 | |
| Srijan 2,00,000 | Plant | 2,20,000 | |
| Raman 1,50,000 | 3,50,000 | Investments | 70,000 |
| Creditors | 75,000 | Stock | 50,000 |
| Bills Payable | 40,000 | Debtors | 60,000 |
| Outstanding Salary | 35,000 | Bank | 10,000 |
| Profit and Loss Account | 80,000 | ||
| 5,00,000 | 5,00,000 |
On the above date they decided to dissolve the firm.
(a) Srijan was appointed to realise the assets and discharge the liabilities. Srijan was to receive 5% commission on sale of assets (except cash) and was to bear all expenses of realisation.
(b)
| Assets were realised as follows: | Rs. |
| Plant | 85,000 |
| Stock | 33,000 |
| Debtor | 47,000 |
(c) Investments were realised at 95% of the book value.
(d) The firm had to pay Rs. 7,500 for an outstanding repair bill not provided for earlier.
(e) A contingent liability in respect of bills receivable, discounted with the bank had also materialised and had to be discharged for Rs. 15,000.
(f) Expenses of realisation amounting to Rs. 3,000 were paid by Srijan.
Prepare Realisation Account, Partners’ Capital Accounts and Bank Account
Solution
