Following is the Balance Sheet of Bharat and Bhushan as at 31st March, 2023:
Following is the Balance Sheet of Bharat and Bhushan as at 31st March, 2023:
| Liabilities | ₹ | Assets |  | ₹ |
|
Sundry Creditors Bills Payable Loan from Mrs. Bharat Loan from Mrs. Bhushan Workmen Compensation Reserve Capital A/cs: Bharat Bhushan |
3,00,000 80,000 50,000 1,00,000 1,00,000
1,00,000 1,00,000 |
Cash at Bank Stock Investments Debtors Less: PDD Fixed Assets Profit and Loss A/c Advertisement Suspense A/c |
2,00,000 20,000 |
85,000 50,000 1,00,000
1,80,000 3,80,000 30,000 5,000 |
| Â | 8,30,000 | Â | Â | 8,30,000 |
The firm was dissolved on 31st March, 2022. On dissolution:
(i) Bharat undertook to pay Mrs. Bharat’s loan and took Stock at 20% discount.
(ii) Bhushan took half the Investments at 10% discount.
(iii) Debtors falling due after 10 months were realised at a discount of 6% p.a.
(iv) Creditors and Bills Payable were due on an average basis of one month after 31st March, 2022 but they were paid immediately @ 6% p.a. discount.
(v) Fixed Assets realised ₹ 7,10,000 and remaining Investments at ₹ 45,000.
(vi) There was old Furniture in the firm which had been written off completely from the books. It is now estimated to realise ₹ 3,000. It was taken by Bhushan at this price.
(vii) Bharat was assigned the work of dissolution for a remuneration of ₹ 5,000. Dissolution expenses were ₹ 5,000 which were paid by Bharat.
Prepare Realisation Account, Partner’s Capital Accounts and Bank Account in the books of the firm. 
Anurag Pathak Changed status to publish February 10, 2024
