A, B and C were partners in a firm sharing profits & losses in the ratio of 2 : 2 : 1. The Balance Sheet of the firm at the date of dissolution was as follows:

A, B and C were partners in a firm sharing profits & losses in the ratio of 2 : 2 : 1. The Balance Sheet of the firm at the date of dissolution was as follows:

Liabilities	₹	Assets	₹
Bank Overdraft	21,000	Debtors	40,000
Creditors	86,000	Stock	60,000
Provident Fund	18,000	Investments	25,000
Capital Accounts: A B	1,05,000 42,000	Machinery	80,000
		Prepaid Expenses	3,200
		Goodwill	38,800
		C’s Capital Account	25,000
	2,72,000		2,72,000

  You are informed that: (i) They appointed B to realise the assets. He is to receive 5% of the amounts realised from Debtors, Stock and Machinery, and is to bear all expenses of realisation. (2) Bad Debts amounted to ₹ 2,000; Stock realised ₹ 36,000 and Machinery realised ₹ 46,000. There was an unrecorded asset of ₹ 10,000 which was taken over by A at ₹ 8,000. (3) Market value of Investments was ascertained to be ₹ 20,000, and one of the creditors agreed to accept the Investments at this value, Remaining creditors were paid at a discount of ₹ 6,000. (4) An office typewriter, not shown in the books of accounts, realised ₹ 20,000. (5) There were outstanding expenses amounting to ₹ 6,000. These were settled for ₹ 4,500. Expenses of realisation met by B amounted to ₹ 2,000. Prepare necessary accounts. [Ans. Loss on Realisation ₹ 83,500; C brings in ₹ 41,700; Final Payment to A ₹ 63,600; and B ₹ 14,600. Total of Bank A/c ₹ 181,700.]