Sam, Zen, and Jhony are in partnership sharing profits and losses in the ratio 3:2:1. Their Balance sheet as on 31st December, 2004 was as follows.
The firm was dissolved on the above date with the following terms.
1. Building was taken over by Sam at book value and he agreed to discharge the creditors.
2. Accured interest was not collected, where as there was a contingent liability of Rs. 600 which was met.
3. Assets realised as follows: Plant – 25000, Stock – 5000, Debtors – 4600
4. Realisation expenses amounted to Rs. 600 You are required to prepare
- Realisation account
- Capital accounts
- Cash account