P, Q and R were partners in a firm sharing profits in the ratio of 1 : 2 : 2. Their Balance Sheet as at 31st March, 2024 was as follows:

P, Q and R were partners in a firm sharing profits in the ratio of 1 : 2 : 2. Their Balance Sheet as at 31st March, 2024 was as follows:

Liabilities	₹	Assets	₹
Creditors	2,10,000	Land and Buildings	5,00,000
Bank Overdraft	50,000	Office Equipment	8,000
Q’s Loan	40,000	Stock	2,00,000
Capitals P Q R	1,00,000 2,00,000 2,00,000	Debtors 60,000 Less: Provision for Doubtful Debts 3,000	57,000
	8,00,000	Bank	35,000
	8,00,000		8,00,000

  Partners agreed to dissolve the firm on that date. You are given the following information about dissolution: (i) One of the Debtors for ₹ 20,000 paid ₹ 12,000 in full settlement of his account and debtors of ₹ 5,000 were proved bad. (ii) Part of the stok was sold for ₹ 20,000 (being 25% more than the book value). (iii) Office Equipment was accepted by the creditor for ₹ 7,000 in full settlement. Another creditor of ₹ 40,000 was paid only 40% in full settlement of his account and remaining creditors accepted remaining stock in full settlement of their account. (iv) An unrecorded asset of ₹ 20,000 was handed over to an unrecorded liability of ₹ 15,000 in full settlement. (v) Land & Buildings were sold at a loss of 20%. (vi) Q’s Loan was settled by payment of ₹ 30,000. (vii) Realisation expenses ₹ 16,000 were paid by R. You are required to prepare the necessary accounts. [Ans. Loss on Realisation ₹ 1,10,000; Final Payment to P ₹ 78,000; Q ₹ 1,56,000 and R ₹ 1,72,000; Total of Bank A/c ₹ 5,02,000.]