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.