The following was the Balance Sheet of Fox and Wolf as at 31st March, 2024, when they decided to dissolve the firm:

The following was the Balance Sheet of Fox and Wolf as at 31st March, 2024, when they decided to dissolve the firm:

Liabilities	₹	Assets	₹
Capital: Fox Wolf	30,000 24,000	Cash at Bank	4,500
Creditors	88,500	Stock	18,000
Mrs. Wolf’s Loan	40,000	Debtors	42,000
Bills Payable	23,000	Furniture	12,000
		Machinery	1,06,500
		Profit & Loss A/c	22,500
	2,05,500		2,05,500

  Stock was realised for ₹ 10,500 and machinery was sold for ₹ 74,250. Furniture was taken over by Fox at ₹ 7,500. Bills payable were paid in full, while creditors were settled at 2% discount. Mrs. Wolf accepted ₹ 38,500 in full settlement of her Loan Account. There was a claim of damages against the firm for ₹ 4,000 which was settled at ₹ 2,000. One customer, whose account was written off as bad, now paid ₹ 1,800, which is not included in ₹ 27,750 given above. Actual realisation expenses amounted to ₹ 2,100. Prepare (a) Realisation A/c, (b) Capital Accounts of Partners, (c) Bank Account to close the books of the firm. [Ans. Loss on Realisation ₹ 43,280; Amount brought in Fox ₹ 10,390 and Wolf ₹ 8,890; Total of Bank Account ₹ 1,52,330.]