Srijan, Raman and Manan were partners in a firm sharing profits and losses in the ratio of 2 : 2 : 1. On 31st March, 2017 their Balance Sheet was as follows:

Srijan, Raman and Manan were partners in a firm sharing profits and losses in the ratio of 2 : 2 : 1. On 31st March, 2017 their Balance Sheet was as follows:

Balance Sheet of Srijan, Raman and Manan as at 31.3.2017

Liabilities	₹	Assets	₹
Capitals: Srijan Raman	2,00,000 1,50,000	Capital: Manan	10,000
Creditors	75,000	Plant	2,20,000
Bills Payable	40,000	Investments	70,000
Outstanding Salary	35,000	Stock	40,000
		Debtors	60,000
		Accrued Interest	7,000
		Prepaid Expenses	3,000
		Bank	10,000
		Profit and Loss Account	80,000
	5,00,000		5,00,000

  On the above date they decided to dissolve the firm. (I) Srijan was appointed to realise the assets and discharge the liabilities. Srijan was to receive 5% commission on sale of assets (except cash) and was to bear all expenses of realisation. (ii) Assets were realised as follows: Plant – ₹ 85,000 Stock – ₹ 33,000 Debtors – ₹ 47,000 (iii) Investments were realised at 95% of the book value. (iv) The firm had to pay ₹ 7,500 for an outstanding repaid bill not provided for earlier. (v) A contingent liability in respect of bills receivable, discounted with the bank had also materialised and had to be discharged for ₹ 15,000. (vi) Expenses of realisation amounting to ₹ 3,000 were paid by Srijan. Prepare Realisation Account, Partner’s Capital Accounts and Bank Account. [Ans. Loss on Realisation ₹ 2,02,575; Cash brought in by Mohan ₹ 66,515; Final Payment to Srijan ₹ 98,545 and Raman ₹ 36,970; Total of Bank Account ₹ 3,08,015.]