X, Y and Z decided to dissolve partnership. The position as at 31st December, 2023, the date of dissolution was as follows:

X, Y and Z decided to dissolve partnership. The position as at 31st December, 2023, the date of dissolution was as follows:

Liabilities	₹	Assets	₹
Creditors	20,000	Freehold Property	40,000
Bank Loan	5,000	Machinery	40,000
Capitals: X Y Z	70,000 40,000 20,000	Investments	16,000
Current Accounts: X Y	12,000 7,500	Stock	30,000
Reserve for Contingency	10,000	Debtors	30,000
Commission Received in Advance	6,000	Cash	10,000
		Loss in Business	20,000
		Current Account: Z	4,500
	1,90,500		1,90,500

  They shared profits in the ratio of X: 1/2, Y: 3/10 and Z: 1/5. X agreed to bear all realisation expenses. For this service X is paid ₹ 2,000. Actual expenses amounted to ₹ 3,200 which was withdrawn by him from the firm. Other information are: (1) Assets, with the exception of investments and Cash, are sold for ₹ 1,25,100. 75% of the investments are taken over by X at 75% of their book value. He also agrees to discharge the Bank Loan. The remaining investments were taken over by Y at the market value of 120%. (2) There were outstanding expenses amounting to ₹ 5,000. These were settled for ₹ 2,000. (3) A B/R for ₹ 10,000 was received from a customer Mr. Surender Kumar and the bill was discounted from the bank. Surender became insolvent and 75 paise per ₹ were received from his estate. (4) Commission received in advance was returned to the customers after deducting 60% for work done. You are required to prepare the necessary accounts. [Ans. Loss on Realisation ₹ 20,000; Final Payment to X ₹ 61,800; Y ₹ 33,700 and Z ₹ 9,500; Total of Cash A/c ₹ 1,42,600.]