Joe, Maggi, and Hassan were partners sharing profits and losses in the ratio of 1:2:2. Their Balance sheet as on 31st December 2004 was as follows.
The partners agreed to dissolve the firm on the following terms.
1. Assets realised as follows: Land and Building Rs. 1,20,000 Stock 40,000 Accounts receivable 15,000
2. Expenses on dissolution is Rs. 3000
3. A creditor accepts oce equipments for Rs. 7000 and the remaining creditors were paid in full by cheque.
4. The joint life insurance policy was surrendered for Rs.9000. Prepare realisation a/c, capital accounts and bank account.
