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in Dissolution of Partnership by (25.6k points)
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Abu, Bibu and Cebu were sharing profits and losses in the ratio 2:1:1. Their Assets and Liabilities as on 31-12-2007 is as shown below: 

The assets realized on dissolution are : 

Sundry Debtors 20,500 

Furniture 10,000 

Stock 10,000

Plant & Machinery 15,000 

Cash at Bank 5,000 

Provision for bad debts 500 

Sundry Creditors 15,000 

Bills Payables 3,000 

Bank Overdraft 5,000

In addition to the above the firm had a general re serve for Rs. 4000/- and an accumulated loss of Rs. 2,000/-.

The Partners decided to dissolve the rm on the above said date and their capital balances on that date were: 

Abu (Cr.) – Rs. 30,000/- 

Bibu(Cr.) – Rs.15,000/- and 

Cibu(Dr.) – Rs. 10,000/-

The assets realized on dissolution are: 

Sundry Debtors – 18,000/- 

Funiture – 15,000/-

Plant & Machinery – 20,000/- 

Stock was taken over by Bibu at Rs. 8,000/-

The firm had an unrecorded investment of Rs. 5,000/- and there was a pending case for a claim of Rs. 2,000/- which was settled at Rs. 1,000/- Realisation expenses amounted to Rs. 500/-. The creditors are settled at a discount of 10%. Prepare Realisation ale, Capital a/cs and Bank a/c.

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Old Balance Sheet

Realisation A/c

Capital A/c

Cash A/c

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