Thara, Sony and Agnes started business on 1st April, 2002 with capitals of Rs. 1,00,000, Rs. 80,000 and Rs. 60,000 respectively sharing profits (losses) in the ratio of 4 : 3 : 3. For the year ending March 31st, 2003, the firm suffered a loss of Rs. 50,000. Each of the partners withdrew Rs. 10,000 during the year. On March 31st, 2003 the rm was dissolved, the creditors of the rm stood at Rs. 24,000 on that date and cash in hand was Rs. 4,000. The assets realised Rs. 3,00,000 and creditors were paid Rs. 23,500 in full settlement of their claim. Prepare realisation ac-count and show your workings clearly.
Hint: Book value of assets on the date of dissolution is to be ascertained by preparing a Balance Sheet.