Pawan and Arun are partners in a firm sharing profits and losses in the ratio of 3 : 2. They decided to dissolve their firm on 31st March, 2023, when their Balance Sheet was as follows
Pawan and Arun are partners in a firm sharing profits and losses in the ratio of 3 : 2. They decided to dissolve their firm on 31st March, 2023, when their Balance Sheet was as follows:
| Liabilities | ₹ | Assets | ₹ |
| Capital A/cs: Pawan Arun Sundry Creditors Profit and Loss A/c | 17,500 10,000 2,000 1,500 | Freehold Property Investments Sundry Debtors Stock Bank Cash | 16,000 4,000 2,000 3,000 2,000 4,000 |
| Â | 31,000 | Â | 31,000 |
The partners decided to dissolve the firm on the above date. Other assets were realised as follows:
Freehold Property ₹ 18,000; Sundry Debtors ₹ 1,800; Stock ₹ 2,600.
Creditors of the firm agreed to accept 5% less. Expenses on Realisation on assets were ₹ 400. There was a printer in the firm which was not shown in the above Balance Sheet. The Printer is now sold for ₹ 1,000.
Prepare Realisation Account, Partner’s Capital Accounts and Bank Account.
Anurag Pathak Answered question June 21, 2024
