Desh, Prem and Azad carrying on business and sharing profits and losses in the ratio of 2 : 2 : 1
Desh, Prem and Azad carrying on business and sharing profits and losses in the ratio of 2 : 2 : 1, dissolved their firm as at 31st March, 2022 on which date their Balance Sheet was as follows:
| Liabilities | ₹ | Assets |  | ₹ |
|
Sundry Creditors Bills Payable Bank Loan General Reserve Investments Fluctuation Reserve Capital A/cs: Desh Prem Azad |
41,500 20,000 40,000 50,000 40,000 75,000 75,000 15,000 |
Cash at Bank Stock Debtors Less: PDD Investments Premises |
50,000 2,500 |
22,500 80,000
47,500 55,000 1,51,500 |
| Â | 3,56,500 | Â | Â | 3,56,500 |
Following transactions took place at the time of dissolution:
(i) A bill for ₹ 5,000 received from Mohan discounted from bank is not met on maturity. Mohan proved insolvent and a dividend of 50% was received from his estate.
(ii) The assets except Cash at Bank and Investments were sold to a company which paid ₹ 3,25,000 in cash. The Investments were sold and ₹ 56,500 were received.
(iii) Sundry Creditors (including Bills Payable) were paid ₹ 57,500 in full settlement.
(iv) Realisation Expneses were ₹ 15,000.
Prepare Realisation Account, Partner’s Capital Accounts and Bank Account. 
Anurag Pathak Changed status to publish February 10, 2024
