A, B and C are in partnership sharing profits and losses in the proportions of 1/2, 1/3 and 1/6 respectively. On 31st January, 2024 they decide to dissolve the partnership, and the position of the firm on this date is represented by the following Balance Sheet

A, B and C are in partnership sharing profits and losses in the proportions of 1/2, 1/3 and 1/6 respectively. On 31st January, 2024 they decide to dissolve the partnership, and the position of the firm on this date is represented by the following Balance Sheet:

Liabilities	₹	Assets	₹
Creditors	40,000	Land and Buildings	57,000
Loan Account: A	10,000	Stock	50,000
Capital Accounts A B C	60,000 40,000 10,000	Sundry Debtors	50,000
		Cash at Bank	3,000
	1,60,000		1,60,000

  During the course of realisation, a liability under a suit for damages is settled at ₹ 20,000 as against ₹ 5,000 only provided for in the books of the firm. Land and Buildings were sold for ₹ 40,000 and the stock and Sundry Debtors realised ₹ 30,000 and ₹ 42,000 respectively. The expenses of realisation amounted to ₹ 1,200. You are required to prepare Realisation Account, Cash Account and Partners Capital Accounts in the books of the firm. [Ans. Loss on Realisation ₹ 61,200; Cash paid to A ₹ 29,400; B ₹ 19,600 and Cash brought in by C ₹ 200; Total of Bank A/c ₹ 1,15,200.]