Question

Green and Red sharing profits as 3:1 and they agree upon dissolution. The Balance Sheet as on 31-03-2014 is as under:

Balance Sheet as on 31-03-2014

Green took over plant and machinery at an agreed value of Rs. 60,000. Stock and furniture were sold for Rs. 42,000 and Rs.13,900 respectively. Debtors were taken over by Red at Rs.69,000. Creditors were paid at a discount of Rs.900. Green agreed to pay the loans. Realisation expenses were Rs.1,600. Prepare necessary Ledger A/cs.

Answer 1

Realisation A/c

Capital A/c

Cash A/c