Anu and Binu were partners sharing profits and losses in the ratio of 1/2 and 3/4. Their Balance Sheet as on 30th June 2004 was as follows.
The firm is dissolved. Furniture and Machinery realized 10% less than their book values. Rs.20,000 is collected from debtors. Anu took over the stock at Rs. 25,000. The firm had an unrecorded liability on outstanding expenses Rs.2,500. Realisation expenses amounted to Rs. 2,000. Record journal entries and prepare ledger accounts.