Mr. White and Mr. Black are partners sharing profits in the ratio of 3:2. They decided to close the firm and their Balance sheet is given below.
Balance sheet as on 31.03.2005
Assets realised as follows:
Building – 32,000, Debtors – 28,000, Furniture – 36,000 Liabilities settled as follows. Plant has been taken over by bank at Rs. 66,000 in respect of the loan granted by the bank and the rest has been paid in cash. Creditors are settled at Rs. 30,000. Realisation expenses came to Rs. 1,000 which have been met by Mr. Black. Prepare necessary accounts to dissolve the rm.
