| Liabilities | Amount (Rs.) | Assets | Amount (Rs.) |
| Sundry Creditors | 41,500 | Cash at Bank | 22,500 |
| Bills Payable | 20,000 | Stock | 80,000 |
| Bank Loan | 40,000 | Debtors 50,000 | |
| General Reserve | 50,000 | Less: Provision for Doubtful Debts (2,500) | 47,500 |
| Investments Fluctuation Reserve | 40,000 | Investments | 55,000 |
| Capital A/c : | Premises | 1,51,500 | |
| X 75,000 | |||
| Y 75,000 | |||
| Z 25,000 | 1,75,000 | ||
| 3,66,500 | 3,56,500 |
A bill for Rs. 5,000 received from Mohan discounted from bank is not met on maturity.
The assets except Cash at Bank and Investments were sold to a company which paid Rs. 3,25,000 in cash. The Investments were sold and Rs. 56,500 were received. Mohan proved insolvent and a dividend of 50% was received from his estate. Sundry Creditors (including Bills Payable) were paid Rs. 57,500 in full settlement. Realisation Expenses amounted to Rs. 15,000.
Prepare Realisation Account, Partners’ Capital Accounts and Bank Account.
Solution
