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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

  8,30,000     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
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