A, B & C are partners sharing profit and losses in the ratio of 5:3:2. Their Balance Sheet as on 31st March 2015 was as follows:
Balance Sheet of A, B & C as on 31st March 2015
The firm was dissolved on that date. Prepare realization account with the following information:
1) Building realized for Rs. 1,20,000; Bills receivables realized for Rs. 70,000; Stock realized for Rs.40,000 and Machinery sold for Rs.33,000 and furniture Rs.60,000.
2) Bank loan was settled for Rs.70,000; Creditors and bills payable were settled at 10% discount.
3) Realisation expenses Rs.1,500.