Appu and Chinku were partners in a firm sharing profits and losses in the ratio of 4: 3. Their Balance Sheet as on 31st December 2005 was as follows.
The firm is dissolved as on the Balance sheet date. The assets were realized as follows.
| Sundry Debitors |
Rs. 14,000 |
| Stock-in-trade |
Rs. 21,000 |
| Furniture |
Rs. 17,500 |
| Machinery |
Rs. 25,000 |
Sundry Creditors were paid at a discount of 15%. The expenses on realisation amounted to Rs. 2,500. Pass journal entries and prepare ledger accounts on dissolution of the firm.
